Builder is delaying registration and demanding extra charges?
I purchased a flat in Pune from a reputed builder and paid all the agreed amount according to the sale agreement. Now, the builder is delaying the registration process and is demanding an additional ₹3 lakh citing increased costs. This was never mentioned in our agreement. I am extremely worried as the possession date was last month. What legal action can I take against the builder to either get the registration done or recover my money? Should I file a consumer complaint or go to RERA?
Disclaimer: The answers on this page are for general informational purposes only and do not constitute legal advice. They do not create a lawyer-client relationship. Laws vary by jurisdiction and facts matter — please consult a qualified lawyer before acting on any information here.
When faced with a situation where a builder is delaying the registration of your property and demanding additional charges not stipulated in the agreement, it is crucial to approach the matter methodically and cautiously. Here are the steps and legal avenues you can consider:
- Review Your Agreement: First, carefully review the terms and conditions of your sale agreement. Ensure that there are no clauses that could be interpreted to allow the builder to demand additional charges post-agreement.
- Communicate in Writing: Send a formal notice to the builder, preferably through a lawyer, stating your concerns about the delay in registration and the unauthorized demand for additional charges. This notice should demand adherence to the original terms of the agreement.
- File a Complaint with RERA: Since the property is in Pune, you can file a complaint with the Maharashtra Real Estate Regulatory Authority (RERA). Under the Real Estate (Regulation and Development) Act, 2016, builders are required to adhere to the terms of the agreement, including timely delivery and registration. RERA can direct the builder to comply with these terms and potentially impose penalties for non-compliance.
- Consumer Complaint: You also have the option to file a complaint with the Consumer Disputes Redressal Commission. This is applicable as the builder's actions could be considered a deficiency in service under the Consumer Protection Act, 2019. You can seek compensation for the delay and any harassment caused by the demand for additional charges.
- Legal Precedents: Refer to cases such as Fortune Infrastructure vs. Trevor D’Lima (2018), where the Supreme Court held builders accountable for delays and deficiency in service. Also, the case of Kolkata West International City Pvt. Ltd. vs. Devasis Rudra (2019) can be insightful as it deals with similar issues of delay and demand for additional costs.
It is advisable to act promptly as delay in filing complaints can affect your case. Additionally, be aware of the limitation periods: for RERA, the complaint should be filed within a reasonable time from the date of cause of action, and for consumer complaints, it is two years from the date of the cause of action.
Given the complexity of your situation, consulting with a legal expert who can guide you through the intricacies of the RERA and consumer protection processes is recommended. This will ensure that you take the most effective steps to resolve your issue.
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I'm sorry to hear about the situation you're facing. Here's the practical breakdown of your options under Indian law:
1. Review the Sale Agreement: First, ensure that the sale agreement does not include any clause that permits the builder to demand additional charges. If there is no such clause, the demand for extra payment is unjustifiable.
2. RERA Complaint: Since the property is in Pune, the Real Estate (Regulation and Development) Act, 2016 (RERA, 2016) is applicable. RERA mandates that builders must adhere to the terms of the agreement and deliver possession on time. You can file a complaint with the Maharashtra RERA authority. This is a strong option because RERA specifically addresses issues of delay and unfair practices by builders.
3. Consumer Complaint: Alternatively, you can file a complaint with the Consumer Disputes Redressal Commission under the Consumer Protection Act, 2019 (Consumer Protection Act, 2019). Builders who delay possession or make unjust demands can be held liable for deficiency in service. This is a valid route if you seek compensation or specific performance.
4. Legal Precedents: In the case of Fortune Infrastructure & Anr. vs. Treasure Town & Ors. (2016), the Supreme Court held that homebuyers are entitled to relief for delays and unjust demands by builders. This precedent supports your case against the builder.
5. Immediate Steps:
- Send a legal notice to the builder, demanding completion of the registration and possession without additional charges.
- File a complaint with either RERA or the Consumer Forum, depending on your preference for speed and the nature of relief sought.
- Maintain all records of communication and payments made to the builder.
The key thing to watch out for here is the limitation period for filing a complaint, which is generally two years from the date of cause of action in consumer matters. For RERA, you should act promptly to avoid any procedural delays.
The most important thing right now is to send a legal notice to the builder and prepare to file a complaint with RERA or the Consumer Forum. Don't delay this.
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- File a Complaint with RERA: Since the property is in Pune, you can file a complaint with the Maharashtra RERA authority. They are specifically empowered to handle such disputes and can order the builder to complete registration without additional charges.
- Consumer Complaint: Alternatively, you can file a complaint with the Consumer Forum. This is suitable for cases involving unfair trade practices and deficiency in service. However, RERA is generally quicker for real estate issues.
- Send a Legal Notice: Before taking formal action, send a legal notice to the builder demanding the completion of registration and possession as per the original terms. This can sometimes prompt quicker resolution.
I'm Adv. Sanjeev Malhotra, and I understand your concerns. In situations like yours, where a builder is delaying the registration and demanding extra charges, you have a couple of legal avenues to consider. Since your issue involves a delay in possession and an additional demand for money, both the Real Estate (Regulation and Development) Act, 2016 (RERA, 2016) and the Consumer Protection Act, 2019 (Consumer Protection Act, 2019) are relevant.
1. RERA Complaint:
- Since you are in Pune, you can file a complaint with the Maharashtra Real Estate Regulatory Authority (MahaRERA). RERA mandates that builders must adhere to the terms of the sale agreement, and any deviation such as demanding additional charges without prior agreement is not permissible.
- RERA can direct the builder to comply with the terms of the agreement and may impose penalties for non-compliance. It can also order a refund of the amount paid with interest if the builder fails to deliver possession on time.
- To file a complaint, you will need to fill out the prescribed form and submit it along with the necessary documents, such as the sale agreement and any communication with the builder.
2. Consumer Forum:
- You can also file a complaint with the Consumer Disputes Redressal Commission under the Consumer Protection Act, 2019. Builders demanding extra charges without prior agreement constitutes an unfair trade practice.
- The Consumer Forum can direct the builder to complete the registration and hand over possession, or order a refund with interest, along with compensation for any harassment faced.
- For filing a consumer complaint, you should gather all relevant documents, such as the sale agreement, payment receipts, and correspondence with the builder, and file a complaint in the district consumer forum.
Legal Precedents:
- In Fortune Infrastructure v. Trevor D'Lima (2018), the Supreme Court held that builders cannot demand additional amounts without a contractual basis.
- The case of Kishore P. Shah vs. MahaRERA (2019) highlighted the obligation of builders to adhere to the terms of the agreement under RERA.
Note: It is crucial to act promptly due to limitation periods. Under RERA, complaints should be filed as soon as possible after the cause of action arises. For consumer complaints, the limitation period is 2 years from the date of the cause of action.
Given the complexity of real estate disputes, consulting a local lawyer in Pune experienced in RERA and consumer matters might be beneficial to guide you through the process.
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