Builder is demanding extra ₹3 lakh before handing over the flat keys?

Question

I am in a fix. We bought a flat in Pune and paid the entire amount as per agreement. Now, just before the handover, the builder is demanding an extra ₹3 lakh citing increased construction costs. We have no such clause in our contract. This is a huge sum for us. We have already shifted from our rented place because the builder promised keys this month. What legal action can I take to ensure possession without paying this extra amount? Please help, feeling very cheated and stressed.

Adv. Meera Pillai · Accepted Answer

I'm sorry to hear about the situation you're facing. It's frustrating when builders make last-minute demands that aren't part of the original agreement. Let's break down what you can do. Short Answer: The builder cannot legally demand extra money if it is not stipulated in your contract. You have the right to take legal action to enforce the terms of your agreement. Understanding the Law: Under the Real Estate (Regulation and Development) Act, 2016 (RERA), builders are required to adhere strictly to the terms of the sale agreement. Any additional demand not covered by the contract is unlawful. Section 13 of RERA prevents builders from demanding any additional payment without the buyer's consent. Practical Next Steps: Review Your Agreement: Double-check your sale agreement to confirm there is no clause allowing the builder to demand additional charges due to increased construction costs. Send a Legal Notice: Draft a legal notice to the builder stating your refusal to pay the extra amount, citing the absence of such a clause in your agreement. Mention your readiness to take legal action under RERA. File a Complaint with RERA: If the builder does not respond or refuses to hand over the keys, file a complaint with the Maharashtra RERA Authority. You can do this online through the MahaRERA website. Consider a Consumer Complaint: You may also file a complaint with the Consumer Disputes Redressal Commission for unfair trade practices. Real-World Context: Builders often attempt to extract additional money by putting pressure on buyers at the last moment. Courts and tribunals typically frown upon such practices, especially when there is no contractual basis for the demand. The Fortune Infrastructure vs. Trevor D'Lima (2018 SC) case is a precedent where the Supreme Court held builders accountable for not delivering as per the agreement. Time Limits & Risks: Act promptly. Delays in filing a complaint can weaken your case. Under RERA, there is a limitation period of 3 years to

Adv. Ramesh Srinivasan · Answer

The builder's demand for an extra ₹3 lakh without any contractual basis is not legally tenable. Look, the law is clear here: a contract is binding as per its terms. If your agreement does not include a clause allowing for escalation of costs, the builder cannot unilaterally impose such charges. You have a strong case, but you must act swiftly. Here's what you can do: 1. **Issue a Legal Notice**: Engage a lawyer and send a legal notice to the builder demanding immediate possession of the flat as per the original agreement. The notice should clearly state that the demand for additional payment is not supported by the contract and is therefore illegal. 2. **File a Complaint in RERA**: The Real Estate (Regulation and Development) Act, 2016 (RERA, 2016) is designed to protect homebuyers like you. File a complaint with the Maharashtra Real Estate Regulatory Authority (MahaRERA). RERA has the authority to direct the builder to hand over possession without the extra charges. 3. **Consumer Forum**: Alternatively, you can approach the Consumer Disputes Redressal Commission, as this is a clear case of unfair trade practice. The National Consumer Disputes Redressal Commission has previously held in Fortune Infrastructure v. Trevor D’Lima (2014) that builders cannot demand additional sums without contractual basis. 4. **Possession and Compensation**: In your complaint, seek not only possession but also compensation for the delay and harassment, if applicable. Given that you're in Pune, no

Adv. Shreeram Gopal · Answer

I understand the stress and frustration you are experiencing with this situation. Under Indian law, the terms of a contract are binding, and any demand for additional payment that is not covered by the contract can be challenged legally. Firstly, refer to the Indian Contract Act, 1872, which governs the enforceability of contracts in India. According to Section 31, the terms of the contract are sacrosanct unless both parties mutually agree to modify them. If there is no clause in your agreement that allows for additional charges due to increased construction costs, the builder's demand is not legally enforceable. In similar situations, the courts have often ruled in favor of the buyer. One pertinent case is Fortune Infrastructure vs Trevor D'Lima (2018), where the Supreme Court held that builders cannot impose arbitrary demands that are not stipulated in the contract. The Court emphasized that the buyer is entitled to possession upon fulfilling the agreed terms, and any additional demand without contractual basis is unjust. Another relevant judgment is from the DLF Homes Panchkula Pvt. Ltd. vs D.S. Dhanda (2019). In this case, the Supreme Court reiterated that the builder cannot charge additional amounts unless explicitly provided for in the agreement. The Court directed the builder to hand over possession without the buyer having to pay the extra amount. Here are the steps you can take: Send a Legal Notice: Draft a legal notice to the builder stating your position, referenci

Adv. Dinesh Kumar · Answer

I'm sorry to hear about this situation; it sounds incredibly frustrating, especially after you've already planned your move. Let's see how you can tackle this effectively. Short Answer: The builder's demand for extra payment without a contractual basis is legally unjustified. You have strong grounds to refuse payment and seek possession under the Real Estate (Regulation and Development) Act, 2016 (RERA). Explanation: Under Section 18 of RERA, if a builder fails to complete or give possession of an apartment in accordance with the terms of the agreement for sale, the buyer is entitled to a refund or possession along with interest. The demand for additional funds not stipulated in your agreement can be challenged as an unfair trade practice. Document Everything: Gather all communications with the builder, including emails, messages, and the original agreement. This will be crucial for your case. Send a Legal Notice: Draft a legal notice to the builder, stating your refusal to pay the additional amount and demanding possession of the flat as per the contract. Mention that their demand is illegal under RERA. File a Complaint with RERA: Submit a complaint to the Maharashtra RERA Authority. You can do this online through their portal. Include all your documentation and the legal notice. Consider Consumer Court: If RERA proceedings take time, you can also file a complaint with the Consumer Court under the Consumer Protection Act, 2019 for unfair trade practices. Real-World Insight:

Builder is demanding extra ₹3 lakh before handing over the flat keys?

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