Builder charging 24% interest on late payment


Builder charged the money without ever mentioning in the receipts, (no receipts ever mentioned this) which is totally a ransom; since I have given the entire amount & after they started asking for the interest amount. 2. They charged 3% service tax; however I personally think even that is not required; pls clarify 3. On the top of that they constructed three extra flats on the club house which was not mentioned earlier in the brochure...infact they got approvals in last 2 months from GDA, which again is cheating Pls advise, should I move to consumer court & how I can put a stay on

Answers (3)


293 votes

Yes , you can file a complaint for damages to the consumer court. A criminal complaint against the director of the company . A stay on construction need to be taken through the High Court with very high chances of positive results, as the situation faced by you has become very common and the courts are aware of such cheating by the developer. The RE- APPROVALs on the once approved masterplan of the project itself is an illegal act where the GDA can be made a party too.


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134 votes

Yes. You may go before consumer forum.

But then you cannot dispute the levy of service tax as matters of deficiency of service are filed before consumer forum.

You may also lodge a FIR or a criminal complaint before the chief judicial magistrate again staff him.

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292 votes

If the builder wants to undertake additional construction, which is not part of the layout plan shown to flat allottees at the time of executing the purchase agreement he must obtain the consent of the allottee. In cases of the builder/developer makes changes in the use of land or in the layout plan and the structures with respect to the one given in the agreement, the allottee must send a legal notice to the builder and if he does not respond to the same the allottee can file a complaint against the builder in the consumer forum or file a civil suit in a civil court.

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