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Interest Demand on Pending payment by Builders in current lock down situation
22-Apr-2023 (In RERA Law)
Hi,
I purchased a property in January 2020 for which the final payment (90%) was due on 4 the April. Due to lock down situation and delay in loan processing from bank side, the payment could not be completed. The builder has imposed penalty/interest for the late payment. They are not agreeing to extend the deadline and imposing interest on delayed payment. Can you please suggest what if that is justified and what action is recommended.
Hello please go through the Force majeure clause in the builder buyer agreement and see if there is exit clause. Further please suggest if builder has invoked Force majeure clause till now or not. Reply to the demand letter sent by the builder must be sent by you describing circumstances for non payment due to lockdown and seek time till lockdown period is over. Thereafter immediately you should send legal notice to cease and desist from sending demand letter till lockdown else exit and demand refund of the money deposited. RERA act section 6 gives extension to builder in force majeure conditions to complete project.
Helpful?
Adv. Ranbir Singh
Faridabad | 25+ Answers
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Hi, under such situations the force majeure clause comes into effect..It is advisable to send builder a legal notice to waive off the interest penalty as the delay was due to the bank operations being effected during lockdown
Helpful?
Adv. Hemant Chaudhary
Gurgaon / Gurugram | 25+ Answers
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