Sanoop 21 January 2016

Builder not completing project on time

Hi All,

I had booked a flat with a respected builder in our area one year back.

the project was estimated to be completed on jan 2017 but now the builder is saying that there is a dealy in the project and he will not able to complte the project on time.

so i asked him to return my booking amount of around 3 lakh 14 thousand and he agreed.

but now he is saying that he will deduct around 10,000 rs as service tax.

is that correct ??

and is there a provision in law which say the builder should pay interest on the downpayment if he is not able to compelete the project on promised time.

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8 Replies

Mayur shikhare 21 January 2016

Normally builder is asking you Rs. 10000 as adminstrative charges or cancellation charges. which he is not allowed to charge. No there is not provision which allows you to recover the interest on the down payment unless specifically agreed upon in a written agreement

Sanoop 21 January 2016

No he is saying it is not a cancellation charge. he is taking the money as service tax on the amount which i paid.

it is legal to charge service tax on the flat which i never bought.

saravanan s (legal advisor) 21 January 2016

if it is jan 2016 and not jan 2017 as mentioned then you make him clear that you would be taking the case to the district consumer forum for deficiency in services

Sanoop 21 January 2016

the construction is not yet started so there is no way he would be able to construct a 14 floor tower by jan 2017.

is is correct to deduct service tax for a flat,I didnt buy ??

Laxmi Kant Joshi (Advocate ) 21 January 2016

No legally he can not deduct service tax from your amount, if he do so then file a criminal case against him .

Sanoop 21 January 2016

yes he is doing it.criminal case or case in consumer court ??

Laxmi Kant Joshi (Advocate ) 21 January 2016

He is trying to deceiving you and wants to keep your money it is a criminal act by him, you can take shelter of consumer court only when he didn't handover your flat to you on the prescribed date mentioned on your agreement, before this you can't.

Reformist !!! (Other) 04 February 2016

You can move to Consumer court with the facts mentioned by you. Moreover, it wud b good if you take both the pleas i.e. either to hand over the possession to you by Jan 2017 and you are ready to pay the full amount through court, else pay your money back with the rate of interest as the court decides for deficiency in services.

Consumer court takes anytime between 3-12 months, so you may be able to show the real picture to court by Jan 2017 when he will be behind the promised schedule.