Read: Bangalore Mirror, Today edition
Developer told to pay up for delay
Ordered by consumer court to compensate a techie for not handing over the flat on time despite getting 95% of the total cost
When property buyers normally crib and complain about their developer not handing over the flat on time and other shortcomings in the promised works, this buyer went a step further. He approached the consumer court, fought the case on his own, won the case and got a compensation in lieu of the delay and the hardship.
The court has ordered the developer to pay nearly Rs 8,000 per month with retrospective effect from January 1, 2011 towards the delay in completing the flat and Rs 10,000 towards the hardship caused to the petitioner.
DREAMS DASHED
Techie B V Prakash and his wife dreamt of owning a home which would comfortably accommodate the family of four. Prakash booked the flat in 2009 in SJR Luxuria on Bannerghatta Road when construction was underway. He chose a three-bedroom apartment measuring 2,120 sqft, which cost him around Rs 75 lakh (excluding stamp duty and registration).
As per the agreement with the builder, he was to get possession in September 2010. Even as the grace period lapsed, there was no sign of the complex getting completed. On making enquiries, all that Prakash got was evasive replies from the project manager.
In April 2011, SJR demanded Rs 51 lakh to be paid in seven days towards flooring. “Even at this time, I requested the developer to let me know at least the date when the flat would be handed over. But the developer showed utter lack of concern and did not heed my requests. Instead, he threatened to impose an 18 per cent penalty if the money was not paid. When I took a step to seek legal help, the developer gave me an assurance to hand over the flat by July 2011. Based on this assurance, I paid Rs 51 lakh,” says Prakash.
But the assurance remained just that and there was no sign of the flat getting completed. Prakash had invested all his savings to pay up to 95 per cent of the cost of the flat. Having exhausted all options and feeling totally helpless, he decided to approach the consumer court.
The consumer court order says, “The opposite party (read developer) shall complete the remaining works relating to construction within 30 days from the date of this order. The developer shall arrange to deliver possession and execute the necessary deed of conveyance within 15 days from the date of the complainant making the final payment. The developer shall be liable to pay compensation of Rs 8,480 per month from January 1, 2011. If there is further delay in delivering possession, then the compensation has to be paid till the delivery of possession. The complainant is also entitled for a compensation of Rs 10,000 due to the hardship caused to him.”
Prakash never faced such problems when he bought his current home on Bannerghatta Road in 2000. On the other hand, SJR Group not only defaulted on his agreement, but was also hesitant to share information and documents related to the project.
When contacted, a spokesperson of SJR Group claimed that there is no problem with the housing complex and that all ‘buyers are happy’. “If they have any grievances, they should discuss it with the project manager,” he said.
Developer told to pay up for delay
Re: Developer told to pay up for delay
Anyone has the idea about the Real Estate Controller ? When that law will be formed and when it will come into the action ?
Re: Developer told to pay up for delay
If the buyer delays paying the builder, he has to pay 18% interest on the outstanding amount, why can't these consumer courts apply the same penalties and ask the builder to pay 18% interest on the amount paid by the buyer? The buyer has paid almost the complete amount and has not really enjoyed the property he has paid for.
Re: Developer told to pay up for delay
Real Estate Regulation Bill is also in the same state as of "LOKPAL".
Once in a while, it comes for discussion in the parliament and again its goes to a committee for review/modification/ recommendation .....etc. Everytime it is getting diluted.
Ex.
1) Initial draft had a clause, where the developer can't divert the money collected from one Project to the Another. Later provision was made
where 30% of the money can be diverted to any other project.
2) Bill proposes a escrow account where the buyer will deposit the money and upon completion of each stage and accepted by the buyer, the respective amount will be credited to the Developer. Now parliament is proposing change for this clause also..etc
There is no hope that the UPA Government at the Centre has will power to pass the Bill. One fine day, they may pass a bill, which is of no use to the common man.
Basic reason, is majority of the politicians are involved in the real estate business to make quick money. They can't bell themselves.
Once in a while, it comes for discussion in the parliament and again its goes to a committee for review/modification/ recommendation .....etc. Everytime it is getting diluted.
Ex.
1) Initial draft had a clause, where the developer can't divert the money collected from one Project to the Another. Later provision was made
where 30% of the money can be diverted to any other project.
2) Bill proposes a escrow account where the buyer will deposit the money and upon completion of each stage and accepted by the buyer, the respective amount will be credited to the Developer. Now parliament is proposing change for this clause also..etc
There is no hope that the UPA Government at the Centre has will power to pass the Bill. One fine day, they may pass a bill, which is of no use to the common man.
Basic reason, is majority of the politicians are involved in the real estate business to make quick money. They can't bell themselves.
Re: Developer told to pay up for delay
It is not majority of the politician, every politician involves in real estate.
90% of the money spent in election is from real estate. Just think of about the lakes and forests in and around Bangalore 10-15 yrs back. Where they have gone. Politicians have sold them for their pocket money. It is not one party people, every party is involved in it.
90% of the money spent in election is from real estate. Just think of about the lakes and forests in and around Bangalore 10-15 yrs back. Where they have gone. Politicians have sold them for their pocket money. It is not one party people, every party is involved in it.