What should be done if the builder is demanding extra money for an apartment?
Question asked by Mr. Siddharth from Mumbai, India:
Hi, I need your guidance.
I had booked a flat 2.5 years back from a reputed builder in Mumbai. Even though I have already paid all the amounts as agreed and mentioned in the registration document, the builder is not giving possession of the flat. He wants additional Rs.15000 which is a new demand from him (since May, 2008) and not a part of the registration document, even the demand note from him that I got in April 08 had any mention about it.
I have been writing letters to him for last 4 months but he doesn’t reply and their sales office says that whatever you do, you have to pay this amount without which you won’t get the possession. Those who paid that amount, they got the possession in May, 2008 itself.
My point is that I have paid everything that was part of registration document. How can you hold the possession for something which is not a legal demand? If this demand of Rs. 15000 is legal, please give this to me in writing that you won’t give possession till I pay this money. They refuse to reply to my letters in writing and also refuse to give the possession.
I am already incurring almost Rs. 35000 as interest cost per month on the flat amount. With every passing day, I am incurring additional cost but at the same time, I don’t want to agree to his unreasonable demands. I am mentally harassed as well as financially losing the money.
He doesn’t give the possession date in writing. Even in registration document, he had forced me to sign even without a possession date. I understand he did that to everyone. His point was that sign or else cancel your booking, choice is yours. I had already spend more than Rs. 5.0 Lakhs in booking this flat in 2005 itself and had lost more than 1 years because his building got stuck in environmental clearance after 26th July 2006 rain in Mumbai. So, after waiting for 1 year, I didn’t want to cancel the booking.
What is the recourse I have? I will certainly go to Consumer Court but settling the case will take more than a year or so and there is no guarantee that I will get the justice and win the case. Till that time, I can’t afford to lose the money on my flat.
Can I pay the money that he is demanding and take the possession of the flat and then file a case in Consumer forum? What should be the process? I know, if I file a complaint/case first, he won’t give me the possession at all till the case is heard & closed. In the process I may lose more than even 1 year, knowing the judiciary system of our country for a common man.
Please advice. I will be highly obliged.
Best regards,
Siddharth
Vatsala Answers:
There is no mention in your letter as to why the builder is demanding the extra money, i.e. towards what category? It seems to me that you should either fight it out in the consumer forum or pay up and take possession. If you go to the forum, you should take your chances there. The third option is to pay the sum now, and seek a refund later. You can allege that there was delay and lapses in getting possession and seek compensation for illegal demands of extra money and compensation for it.Vatsala
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January 23rd, 2011 at 2:44 AM
I have an interesting situation… I booked a flat with SVP in 2007, after several delays I was told the flat is ready for possession on payment of final amount. I transferred the remaining amount and requested for all the documents. They came back with an interesting story that they have discovered my payments (construction linked payment) were late on occasions and I need to pay additional 1,77,000. Surprised I asked them to review and sent all the mail correspondances showing that delay had not been on my part but was because they did not send me the demand letters to my US addresses despite my repeated requests. They kept sending the demand letters to India address where I do not live. Email trail clearly shows, everytime I received the demand letter on my US address, within 2 – 3 weeks the money was in their account. Anyways, they did not mention about any late fines or interest rate all through these years
After calling them again and again and several emails with no respons, they sent me another letter that I need to pay the interest and yet another 1,90,000. What??? The later amount is becasue of something called EBSP. And interestingly they have generated a backdated letter to reflect this EBSP. That letter ofcourse does not have our sign on it.
I have no idea what this EBSP is. I have the signed agreement letter which does not list this as any item. Further, there is no mention of rate of interest or delayed payment in any part of our agreement. I have sufficient proofs that I have sent the payments moment it was sent to me via e-mail.
So, all in all they are trying to milk Rs 5,00,000 for no reasons. What would you advise me to do…?
September 22nd, 2011 at 10:46 AM
Hi, You havn’t mention whether you have completed registeration formalities or not.
in my opinion, you should pay Rs.15k by cheque as it will be on record and take possession, complete all formalities and then approach consumer court. please don’t waste time further or else you will be barred by limitation act. Shilpa Sharad