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Ankit Khurana (Student)     30 September 2012

Legal notice to a builder

7 years back (in 2005) my father booked a flat in an under construction building project in dwarka. The allotment was promised in 3 years but the entire process got delayed due to some dispute of the builder and DDA. The matter was with CBI, and due to all this the entire process got delayed by years. The builder took 5 years (in 2010) to provide us all the documents so that we could apply to a bank and get home loan, and after we got the loan sanctioned(in 2010 only, as we had all the documents by then) we immediately made a huge chunk of payment and paid upto 70% of total flat cost. We hold the rest 30% because the date of allotment was still not given and seeing the amount of delay already happened we were unsure of the allotments to be happening soon and did not want to struck our money.

After getting pressure from the builder to complete the paymnent, we paid (1 week back) the entire amount pertaining to flat cost.

To our surprise they have sent another letter asking the interest on all the dealyed payments. The total amount of flat was Rs.40 Lakh and the amount of interest they have charged on late payment is staggering Rs. 32 Lakh, which they claim to have got accumulated since 2006 when the first demand was raised and we did not fulfil it.

I have written back to the builder a letter, for proving the grounds on which they have made this payment and I have also mentioned my grounds based on which I do not stand liable to paying them even a single penny. The grounds I mentioned are as follows-

1.                   Last demand letter I received - dated 13/05/2010 - has no mentioning of the interest on late payments and only the outstanding of total flat cost had been demanded. If the interest was getting accumulated over the time than why was it not mentioned in the preceding demand letters? 

2.                  There is no signed agreement between the builder and I per which I have to pay interest on late payments.

3.                  There is still not conformity of the allotment of flat and the alltoment is overdue by 5 years, has given us lot of mental pain.

 

I totally understand that the demand of Rs. 32 Lakh made by the builder is totally illigitimate, but this given a lot of mental set back to my father and it has totally affected his health, as you may understand how it for a middle class person to get a demand of Rs 32 Lakh for a house he is longing to get but has no idea of the allotment, made the entire payment but still harassed by such letters.

Please guide me, I totally want to teach Builder a lesson. Should I go for legal help? Please advise



Learning

 4 Replies

VINOD VERMA (C E O)     30 September 2012

Don't wait for even a second, simply go to the Consmer Disputes redressal commission and file a suit for the firm allotment of Flat or reund of your entire amount. There in no need to shell out a single penny towards interest to the builder as he/she has not kept her promise, the consumer courts are no doubt consumer friendly but still the matter takes several years, the sooner you start the sooner you will come out victorious. I would rather suggest that you pool with other flat buyers also and go for a consolidated litigation to save on the advocate costs plus the fee, which is merely Rs. 4000 for cases above Rs. 20 Lacs and have to be filed in NCDRC. Best of luck 

Ajit Singh Cheema (practising Advocate)     30 September 2012

 Filing consumer complaint before the District Consumer Dispute Redressal Forum is the best option.But before moving consumer forum, please serve the company with a notice / legal notice on your part , detailing the facts as given in the query. You have a strong case and you will win with compensation for harrasment.

Ankit Khurana (Student)     01 October 2012

Mr Ajit and Mr Vinod,

 

Thanks for your responses . I have few questions before I head to consumer court. It will be a great help if you could answer these.

1. I do not want the refund of my money, since I have waited for 7 years and if I quit now that would would mean no returns on my last 7 year investment. I just want the demand for interest to be withdrawn and flat allotment ASAP. This are two cases at the same time, can I address the 2 cases in a single complaint?

2. Since the membership is in my fathers name, being his legal hire, can I myself register a complain, without involving him.

3. After I file the case, if allotment of flats starts,will I have to wait for consumer forum verdict to be eligible for allotments?

4. Where is the consumer redressal court in Delhi? Can you please give me the address?

VINOD VERMA (C E O)     02 October 2012

In the consumer forum you can seek allotment of the Flat as well as compensation for the delay and also seek quashing of un justified demand of interest by the builder, all you have to see and check the details in your contract with the builder. as you say there is no written contract, on basis were you making all the payments, it would be better to take the servivces of consumer disputes lawyer and file suit in the State Consumer Disputes Rederessal Commission, as early as possible


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