Delayed possession and non-payment of interest by builder

I signed an agreement of Sale for purchase of flat in the project at Legend GRK Harmony with “RDB LEGEND infrastructure Pvt. Ltd.” , Hyderabad, by depositing a sum of Rs 10,95,000/- by 07th Feb, 2013 but due to delay in sanction of the revised plan of the project by the competent authority, the agreement was signed in the Month August 2013 with the commitment to receive the possession of the flat after 2 year with a grace period of 6 months. The further balance amount got sanctioned from LICHFL, which released the 20% of the committed value 11,70,000/- on 16 Oct 2013, thus paid the total 40%i.e.,22,65,000/- of the entire amount to be paid i.e. 54,75,000/-.

The builder had agreed to pay the interest on the financed amount till the handover of the possession with out fits. In the beginning the builder paid one year’s interest in advance which was paid to the financer. But from the last Nov,2014 he stopped to make the payment of interest which he had committed to pay till the date of handing over the possession of the flat. He has been asked to make this payment many times but he is not honouring the commitment.

For non construction of flat he saying only one thing that you instruct the financer to release the balance payment, only then I will proceed to construct the flat.

On the other hand the financer the LICHF is showing its inability to release any amount due to RBI directions to disburse amount proportionate to construction development stage. No disbursement is possible unless the builder completes the stage of construction proportionate to the further demand of financed amount and there is steady progress towards meeting the committed delivery schedule.
Hence, no further payment will be made till the construction catches up with the right stage of payment demand and there is steady progress shown by the builder towards completing construction as per stipulated schedule.

More than 2 years have elapsed but the developer has done nothing for the construction of my flat. As per our meetings with the builder and his representatives, they have expressed their inability to complete construction as per schedule due to mismanagement and lack of resources at their end. These reasons are completely within their control to remedy and it is their responsibility to ensure the obligations under the AOS are fulfilled in letter and spirit.

Keeping in view the position mentioned above kindly intervene and ask the builder to honour the commitment by paying the interest element on the financed amount immediately and start the construction without any further delay so that the commitment can be honoured timely.

Randeep Singh
Nallagandla, SeriLingampally, Hyderabad Р500019, Telangana
Email: / 24/04/2015 / 1:36 pm

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