Zobair Ahmed
Asked June 27, 2016

Demanding money even though construction has not started

  • 1 Answer
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Dear Sir, I have booked a flat 3 BHK Noida Extension June 2010 the total flat cost is 28lakhs. I have paid June 2011 7.5 Lakhs. The Builder Tower -18 construction not yet stated 2013, but they have started sending demand letter. When I asked to builde, why are you sending demand letter till now construction not started as per payment plan. Builder do not have right to raise the demand letter. After that they send continue demand letter and legal notice and builder canceled my flat March 2013 but till now I do not receive the 7.5lakh my paid amount. Is there any change to revive my flat. Please advise what i have to do?

Answer 1

The rights and the liabilities in cases where flats (property) are purchased are decided by the Builder-Purchaser agreement. In such agreements the payment plan is agreed between both the parties. Such payment plan can either be time linked -where the buyer has agreed to pay the total sum of the flat in instalments on specific dates over a period of time irrespective of the progress made in the construction-or construction linked -where the buyer pays the sum as and when the construction progresses.

In the former case, the buyer does not have the right to stop the payment on the ground that no progress in the construction has been or construction has not started. The buyer has to wait for the stipulated time mentioned in the agreement where the builder has agreed to hand over the possession of the flat.

In the latter case, the ground for non-payment can be no progress in the construction as both are linked.

In this case, if the payment plan construction linked then it was wrong on the part of the builder to send a demand letter and subsequently cancel the allotment of flat.

It is advised to take either of the two remedies available depending upon whether one wants the possession of the flat or the compensation. If one wants to revive the flat then a complaint can be filed to the State Consumer Disputes Forum (claim being of more than 20 lakhs) A legal notice can be given to the builder before filing of the complaint. If one is seeking for recovering of the amount paid in instalments then a complaint can be filed in the district consumer forum (as the disputed amount is 7.8 lakhs).

(Bijay Madan vs Unitech Ltd. & Anr. on 24 November, 2015, CONSUMER CASE NO. 505 OF 2014 in the National Consumer Disputes Redressal)

https://indiankanoon.org/doc/108799061/

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