Builder not registering the flat
Kalyani
(Querist) 14 November 2015
This query is : Resolved
Hi experts,
We have booked a flat in Bangalore more than a year ago. We got our agreement done after two of booking, it was a bit delayed as we got to arrange money for the advance. Later we went for loan in SBI for the rest of the amount. The builder was insisting us to go to specific branch for loan, but we went for a different branch near to our house for us to have easy access to the bank. The builder dint specify any reason on why was he insisting to go to a specific branch and there were already about 15 loans approved in that branch by that time. The loan where we applied got rejected due to lake of GPA and registered JDA. Not sure how could he manage in the bank for all the approved 15 loans.
Since it got rejected in the branch where we applied, we have asked him to apply in his proposed branch. It got rejected there as well with the same reason. And the builder is block listed in all the SBI branches which means any of his flats will not be issued loans in any branch of SBI.
later loan was applied in Syndicate bank and finally was approved.
The process of 2 rejections and an approval took nearly an years time. Now the flat is about to complete and at a stage where we can go for registration. Now the builder levies a penalty of 4.35 L calculating the interest @24% as mentioned in the agreement. He is insisting us to pay the penalty and get the flat registered. The builder had not sent any prior notice even saying the payment is getting delayed and will be charged (not received any mail or intimation over the phone). All the loan processing except the first one was handled by the candidates of the builder.
How can we handle this situation. I am completely in dilemma what to do.
Do we have to bind to the penalty and get the flat registered?
Where can I raise a complaint against the builder?
Please let me know if you need any attachments regarding the same.
Anirudh
(Expert) 14 November 2015
Please understand. You are dealing with Immovable property. Just booking a flat and not paying the consideration in time will not entitle you to the flat. The builder has to incur commercial rate of interest. Therefore in case of delayed payment by you, you are liable to pay the interest by way of penalty.
If you don't do that, the builder will never register the flat. If you go to court it will further delay the process and involve cost and the Court may also not rule in your favour.
Therefore, you will be well advised to pay the penalty and get the property registered at the earliest, as any delay on your part will further complicate the issues.
The question of raising any complaint simply does not arise in the fact situation.
Kalyani
(Querist) 14 November 2015
Hi Anirudh,
Thank you for the prompt response. Please don't take my points as argument. These are my doubts which I want to get clarified.
The loan process is been completely handled by the builder and problem with the builder itself. If the builder is not bothered about how the customer pays for the flat, why should he handle the loan process and take the responsibility of its approval. The reason for the delay is definitely for the reason of lake of JDA and GPA. I am just trying to understand where is my delay.
Kalyani
(Querist) 14 November 2015
I still have some open queries...hence keeping the status to open again.
Anirudh
(Expert) 14 November 2015
Dear Kalyani,
I have understood your fact situation fully and then only I have given my views.
After all, it is only my views.
Await responses from other Experts.
Anupam Lahiri
(Expert) 15 November 2015
Dear Kalyani Ji,
The booking of the flat is covered by the agreement executed by you. Consult the agreement first.
If the penalty is as provided in the agreement, you are bound by it. The fact that the builder handled the loan application would not make the situation in your favour. It was another service.
Only if the builder is indulging in any unfair trade practice, the Consumer Court may entertain your application.
