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What can I do if builder is asking for interest on late payments?


09-May-2023 (In Consumer Court Law)
I have booked a flat in Bangalore i May 2017 by paying 1LAKH, then paid 6 lakh additional in July 2017 and applied for a loan from a nationalized bank which was not in the approved bank list by the builder, we wanted to take the loan from that back as my wife is working in that bank, after loan Sanction the bank has asked for RERA Registartion or OC from the builder which they took three months to provide, after that builder promised us to pay the ammount tp go for registartion which was supposed to happen on Jan 31st and we paid the ammount on 30th based on the demand letter issued to builder, all the payments are done with 2-3 days of issue of demand letter. after getting the full amount he refused to register the property in our name and now he is asking the interset for delayed payment, which was delayed due to the delay in providing the document by the builder, and we have made all the payment according to demand letter. please suggest me what can we do now?
Answers (3)

Answer #1
681 votes
Sir, you have option to file a complaint against the builder before the Consumer Forum with the relief of direct the builder to execute the registered sale deed and ask the compensation. You have to take serious legal action against the builder otherwise they won't listen your words.
Answer #2
566 votes
In case you have made payments on time and the builder is refusing to register the property now in your name, you could approach the consumer forum and seek remedies to direct the builder to register sale deed as well as seek compensation as well from the builder for mental harassment/agony.
Answer #3
905 votes
If you have a clause in the agreement for sale of the flat with builder that they will provide all the required documents to you for availing Bank loan, then they cannot charge any interest on you for your delay in making the payment by taking loan from the Bank since they cannot take benefit from their his own wrong doing.

2. Strategically, you can pay the interest under strong protest and take possession of the flat and get the sale deed registered.

3. Thereafter you can file a complaint case before your local District Consumer Dispute Redressal forum against the builder alleging deficiency in service and unfair business practice claiming refund of the said interest amount illegally and forcibly collected from you with interest, damage and cost.

Alternatively file civil suit before the Appropriate court seeking for specific performance to execute the sale deed in favour of you without making Interest Payment and re[ort the matter to RERE for further direction to Builders to complete the work and handover the possession of Flat.

Disclaimer: The above query and its response is NOT a legal opinion in any way whatsoever as this is based on the information shared by the person posting the query at lawrato.com and has been responded by one of the Divorce Lawyers at lawrato.com to address the specific facts and details.

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