Remedy for Project Delays


Will the prices of real estate come down? Should you be buying commercial property? Is the government’s negligence of roads and potholes impacting the price of your property investment? Watch incisive debates on Burning issues of the Day. Listen to the biggest voices in the Business, Government and urban planning only on ‘The Urban Debate’.

4 Home Loan rules most of the investors don’t know about


Can you claim tax deduction for your under-constructed house? Can you claim tax for the home loan taken from your friend and not from Bank ? These are some of the questions which are not generally discussed over and lot of investors have no idea about actual rules. In the video below I will talk about four not so known rules of home loans . Keep reading ! . Readers on email can watch the video on this article.

Solution to “Delay in Possession of Flat”


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Preventive Measures

1. Due Diligence:This is the first step that you should take even before you book the flat. You must conduct your own due diligence on the builder and the project. You should look at the track record of the builder and look at the average delivery time of his past projects. Then you should check whether the concerned project has received all approvals. See – documents to check before buying a flat.
When opting for a payment plan, always choose construction linked plan. In this way, you are creating an incentive for the builder to complete the project at the earliest. This will also ensure that you don’t block all your money upfront. You should always keep your options open.

2. Penalty Clause:Before handing over the booking amount cheque, you should ask for a copy of allotment letter and builder-buyer agreement. Check out the project delivery time and ensure that penalty clause is incorporated in the agreement. Generally, all reputed builders have a penalty clause in builder-buyer agreement stating Rs. 5-10 per square feet of penalty per month that the builder will pay from the promised project delivery date upto the actual handover date of the flat.

3. Form a Group

Once, you invest in a project, the next thing you would like to do is to get in touch with other buyers and investors of your project. A group has a much higher strength than an individual. In case of any delays,. These days, there are many online forums where you can meet your fellow buyers and investors.

Now Join Nitesh Caesars Palace Buyers Association(NCPBA)

4. Follow Up with Builder
Your job doesn’t get over with regular payments of your home installments. You should keep a track on construction activity. In case, you feel that the construction is getting delayed, you should meet with the builder as a group and understand the situation. A group can build more pressure and it is easier to fight for your cause as a group.

Legal Recourse

In case you feel that the builder is deliberately delaying the project, you may have to resort to take legal action. You can approach following forums for redressal:

1. Civil Court:If a builder commits breach of its obligations or is involved in unfair trade practices, you can approach a Civil Court for relief. For eg. some builders sell plots and flats even without owning the land, some use sub-standard construction material, some builders don’t apply for approvals deliberately causing delay in projects. Certain states have special provisions to handle delays by builders.  the builder is liable to refund the buyer’s money with interest if he is unable to justify delay in handing over possession of flats.

2. Consumer Forum:Consumer Protection Act, 1986, protects the rights of a consumer and provides remedies to a consumer against deficient services. A delay in handing over possession of flat is deficiency in rendering of promised service by the builder. You can file a case in the consumer dispute redressal commission at three levels – district, state and national level. District commission, established in each district, can handle cases where the value of the claim is less than Rs. 20 lakhs. The State commission of every state can handle cases where the value of claim is more than Rs. 20 lakhs but less than Rs. 1 Crore. The National commission has jurisdiction to handle claims of more than Rs. 1 Crore.

3. Competition Commission of India:The Competition Act, 2002 was enacted to prevent practices having adverse effect on competition, to prohibit use of dominance and to protect interests of consumers. A flat buyer can file a complaint against the unfair practices of the builder before the Competition Commission of India which has been empowered to investigate anti competitive practices and impose stringent penalties on the offenders. Penalties imposed by CCI against a builder act as deterrent to unfair trade practices in the real estate industry.

5. Criminal Court:Along with the consumer complaint in consumer forum, you can also file a criminal case against the builder under the provisions of Indian Penal Code, 1860 for breach of contract, cheating, not responding to grievance and delivery of poor quality construction. You can send a statutory notice to the builder. If the builder does not respond to the notice, file a police complaint and then file a criminal complaint before the Metropolitan Magistrate. You should mention all irregularities committed by the builder in your complaints.

Relief Options

It is better to take legal action as a group. If you file a case as a group, your legal costs will be shared and your case can be fast tracked.

Refunds can be claimed if the project is delayed beyond the stipulated time period as per the agreement. If the builder is in trouble and not in a position to deliver the project, the flat buyer can claim for the money required to purchase an alternative flat at the current market rate in the respective area.
If, however you are reasonably sure that the builder will hand over the possession of flat in a few months or years, you can claim the money you will be spending to pay rent during the delay period. Otherwise, you can claim interest on the payment made till date.

Conclusion

Today, builders are leaving no stones unturned in attracting the investors and end users into buying their properties. First, they will promise you moon and once they get all the money, they will stop responding to your queries. Most projects get delayed due to unfair practices by builders. There cannot be any justification against the delay caused by the builder once he has taken money and has promised to deliver the project in stipulated time.
As a consumer, we must know our rights and how to seek justice. First, you should take preventive measures to avoid delays in possession of flat. If however, preventive measures are not working out, you should not hesitate in taking legal action against the builder. After all, it is our hard earned money which is at stake.

Read more: http://assetyogi.com/flat-possession-delay/#ixzz404TgVYwI

Living in a flat without occupancy certificate? You may lose power


Repo-rateBGALURU: Rajini Chengappa, 58, and husband Vivek, 65, bought a flat in Kodigehalli, off Hebbal, in 2012. They moved into the sixth-floor flat a year later.

The builder, Vivek says, had promised them an occupancy certificate (OC), but it has remained a promise. The Chengappas are not alone in their plight. Thousands of homeowners are facing a similar quandary. Nearly 10,000 buildings in Bengaluru, including 50% of apartments built after the Karnataka government introduced transfer of development rights (TDR) in the city in 2005, do not have OCs, say official sources.

In many cases, though the building plans are approved, OCs are denied due to other violations. Obtaining an OC is a requirement under the Karnataka Apartment Ownership Act, 1972. The law says one cannot legally move into a building unless the developer gets an occupancy certificate from the BBMP or BDA. The corporation can ask apartment owners to leave such illegally occupied flats or impose heavy penalties.
Replying to a question at the recent Belagavi assembly session, chief minister Siddaramaiah had said only 97 highrises in Bengaluru have obtained OCs between 2009 and 2014, while promising stern action against builders violating construction norms.
Energy minister DK Shiva Kumar echoed similar views and directed officials to get tough with apartment builders, by disconnecting power.
But it’s not as easy as it seems, considering the quantum of violations, nexus between civic officials and builders and a lack of stringent laws. Many errant builders and developers have, over the years, gone scot-free, say those familiar with the working of the sector.
There are several examples of builders disappearing without giving OCs and legal water connections to housing complexes. Apprehensive of losing their homes, buyers who’ve invested hard-earned money move into their flats and make do with water from pumps and water tankers.

Read ahead-Click Here

The pain before possession


ncp121Real estate developers evoke little confidence among home-buyers and it is not without reason. While, this year, a large number of them have been focussing on offering delivery of their existing projects to customers, rather than launching new projects, home buyers are facing a new issue. Several developers offering possession letters have given residents an unpleasant surprise with several demands for charges that were not disclosed earlier.Developers are demanding additional charges under various heads. While some are asking for money in the name of labour welfare charge, others are demanding huge amounts in the name of authority meters. There are other charges that are being demanded by most developers such as a one-year advance for maintenance of society, etc. In some cases, developers are cutting corners by leaving some key interior works for the customers to complete — like keeping the fire safety pipe network inside the flat exposed.
An industry expert said that creativity to cut costs is at its peak as developers are stressed on various accounts. While developers have witnessed their project costs escalate because of delays in execution and completion, it has also resulted in a rise in their overhead expenses on account of inflation.

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What can a customer do?
Industry insiders feel that in the absence of a sectoral regulator, this is something that no one can control and home buyers need to be more aware and vigilant at the time of buying the house and look for the charges being disclosed by the developers. Singh said, “Homebuyers need to be more vigilant at the time of buying the house and they should ask the developer upfront to list all the charges and agree to pay only those charges. This is one way where homebuyers can safeguard their interest.” Experts say that since most of these charges are imposed at the time of possession, there is hardly anything that a customer can do about it. “A customer looking for possession of his flat that has already been delayed accepts to pay these charges,” said a real estate consultant with a leading property portal. Katiyar said that only a regulator can set the norms about the charges that developers can impose and a delay in entry of a regulator will only see a rise of such instances.
Rude awakening
* Rs 2,00,000: Approx. additional charges at the time of possession which are not disclosed upfront
* Most developers across Delhi-NCR have imposed an advance maintenance fee for the next one to two years and legal consulting fee amounting to around Rs 20,000
* There are also water charges amounting to around Rs 20,000 and PNG connection charges
* A developer on the Greater Noida Expressway is demanding authority meter charge amounting to Rs 70,000 from customers for 7 KVA power back up at the rate of Rs 10,000 per KVA — a rate which industry experts say is exorbitant –
See more at: http://indianexpress.com/article/business/business-others/undisclosed-charges-the-pain-before-possession/#sthash.6ryGdbyB.dpuf

NCP-30 Jan Meeting Updates


30 Jan Meeting with NEL – Topic where #‎NiteshEstates  Need to revert back by 15 Feb 2016

  1. Revised Plan / Dates for Project completion and handover – Full, Final and Binding
  2. Project completion delay – Formal Communication, Penalty
  3. Occupancy Certificate (OC) – Partial OC by block as needed by law
  4. Power – BESCOM and Generator
  5. Maintenance Agreement – Maintenance Charges –Contatct review
  6. Water – Bore Well, Tankers, Cauvery water, Rainwater Harvesting, Solar Heating, STP, WTP

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Kindly share  by email, facebook more pictures and videos to stand united for delayed deliveries and unfulfillment on promises.

Email:ncpbassociation@gmail.com

Blog: https://ncpbassociation.wordpress.com

Facebook Group: https://www.facebook.com/groups/493665760779280/

Google Group:nitesh-caesars-palace-flat-owners@googlegroups.com 

 Join the association and share your flat details once only-Click Here

Delay in delivery of flat-Action and solutions


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  • Shelter from delayed delivery of flat:Ozone Evergreens in Bangalore-District Forum ordered it to pay around ₹4.4 lakh for delayed delivery of flat and ₹81,600 for reduction in the undivided share of land. It also ordered ₹35,000 towards legal costs incurred and as compensation for the mental agony caused.Click here to read more.
  • Delay in delivering apartment costs builder 5L-A32-year-old engineer has dragged his builder to the Bangalore urban consumer court, and even managed to secure compensation.Click here to read more.

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Why Nitesh Estate is delaying Nitesh Caesar’s Palace | Project and buyers are waiting…

If you are one of those stuck in a delayed project, move to a consumer court or seek solace in appreciated valuation (if it has) of your property.