Construction Delayed, Builder should refund the amount

Construction Delayed, Builder should refund the amount

By siliconindia   |   Tuesday, March 10, 2015

When a person booked an apartment in cities, he will think that his dream to own a house will come true soon. What he fails to take into account was the slowdown realty market. Due to various reasons there will be delay of projects like delay in approvals, rise in construction material like cement and many others. If the buyer delays the booking payment, builders demand for high rates of interest and maintain appropriate payments. But, if a project is postponed, the builders decline to pay interest or refund purchasers money.  

Many peoples who booked flats in the metro cities are confronting the issues as they have limited options.  Let’s have a look at the case of an IT employer who booked an apartment from premium real estate builder.  Recently, the consumer court judgment favored the buyers who booked the apartment from the builder.

Guru raj, software employer had booked an apartment with car parking from a reputed builder. He received allotment letter in the year 2009, October 12 stated the total payment of 3 cr. Yet again, later than 2 years the builder sent a letter asking the amount for the reason of fit outs and interior designing.

IT employer made the payments as builder demanded. Builder collected more than half of the amount from IT employer. The developer evaded making the agreement. Due to some reasons the construction work stopped and the builder failed to hand over the apartment by the agreed date. So the employer demanded the interest amount or to refund the amount paid by him, but the builder declined to give.

IT employer recorded a complaint requesting compensation and an amount paid by him with interest before the National Commission; and to register the agreement for sale of the apartment.

The builder stated the reason for the delay such as delay in approval and told that if they start returning the money the company will bankrupt. The national commission justice declared that once the foundation stone was placed there will be no excuses for any delays; the builder must release the tenure on time. If the developer fails to give the possession on time, the developer ought to refund the amount. When the buyer sees there is no progress in the project, he has a right to cancel the agreement any time.

The commission concluded that builder was making profit. Repaying the amount is not as tough to the builder as the land prices have increased. According to the court direction, the builder compensated the entire amount with interest within 30-45 days.

Follow SiliconIndia :