Monday, January 30, 2012

"Or We Will Cancel Your Booking!"

I am in a dilemma.
In case of cancellation of booking, i am going to lose a big part of my booking amount. Which i can't afford.
If I accept my builder's demand - today,
i don't know what i have to accept - tomorrow
- compromise in quality of construction, delay in possession, completion certificate, society formation, conveyance deed....
What should i do? Please, suggest...

Should I pay my 20 per cent own contribution to the builder - even if, the project is not yet approved by my bank? In fact - not yet approved by any bank!

When i booked the flat, i was told that in the next 30 days - i have to pay my own contribution. Certainly, I agreed to pay and sign the agreement.

When I went to the builder's office to pay my own contribution, I asked whether the project is approved by my bank. The builder said - No. He hasn't yet submitted his file to my bank. In the next week, he will submit it.

Is it approved by any other bank? - I asked.
Builder said not yet - we are in the process of submitting our files to all banks.

When not a single bank has approved the project - how can i believe that there is no legal issue about this project? - I asked the builder.
You are free to believe or not to believe - that is not our concern - you must pay your own contribution in the next 2 days - the builder said.

And what about the agreement? - I asked.
We are starting the process of registration of agreement - the builder said.

Am i supposed to sign the agreement before my bank approves the project? - i asked.
Why not? - Do you know how much time your bank will take to approve my project? - the builder asked.
No. I don't know. I am buying a home for the first time. But you should know. You are the 'builder'. You should tell me. Guide me. Give me time till my bank approves the project. In fact, you should first get your project approved by my bank and then tell me to pay my own contribution and register the agreement. In that case, i would have felt safe to pay my own contribution and to sign the agreement too - I said.

Why are you feeling unsafe? Don't you trust me? - the builder asked.

Trust! You can ask the same question to the bank and get your project sanctioned! - i said.

Banks trust me. But, there is a process - time taking legal process for the approval - if, you don't want to sign and register the agreement - before the project is approved by your bank - i don't have any issues - I am ready to wait - but, you have to pay your own contribution in the next 2 days - the builder said.

If you are ready to wait to sign the agreement - why are you insisting on 2 days? I will pay my own contribution on the day my bank approves the project! - i said.

Because, while booking - you have agreed to pay your own contribution in the next 30 days - the builder said.

But, at the time of booking, you have told me that - you have submitted the file and - in a month's time - the project will be approved by the bank. But, you haven't yet submitted the file - Now, it will take more time - so, don't ask for own contribution - wait for the approval - i said.

Who are you to tell me to wait? - the builder said.

I am your customer - i am requesting you - why are you getting angry? - i said.

I go by my rules. If you want this flat - you have to follow my rules. You have to pay your own contribution in the next 2 days - or we will cancel your booking - the builder said.

I am in a dilemma. I am feeling insecure. The builder's demand is not logical. The builder is arrogant and unreasonable.

In case of cancellation of booking, i am going to lose a big part of my booking amount. Which i can't afford.

If I accept my builder's demand - today, i don't know what i have to accept - tomorrow - compromise in quality of construction, delay in possession, completion certificate, society formation, conveyance deed.

I have to deal with this builder on his terms for the next 4 - 5 years. In this transaction - i will never have any say. It's insulting. Unethical. Illogical.

The builder's terms are wrong. Because I pay in advance this builder can construct the project. I am the paymaster. Actually, i should dictate the terms. Not the builder.

I don't know whether the builder's terms would be against me or not - but, for sure, the builder has no concern about my interest.

What should i do? Should i pay my own contribution or cancel the booking? Please, suggest in the comments.

76 comments:

  1. Wait for 2 weeks and check progress of bank approval. If not at certain level of satisfaction then cancel it. This will ensure that you will not loose more amount in future with this builder. Demand for all legal papers before giving any amount.
    Also talk to bank agent in advance to see if there any legal issues with this site. Read every aggrement before signing.

    ReplyDelete
  2. Why there is no law to file police case against builders? Following laws should be must for any builder:
    1. Sell on carpet area only.
    2. balconey has to be charges 50% only.
    3. Customer should cancel booking at any time without any extra charge or penalty if delay in construction, quality is not as declared, aminities not as declared. Also customer sould get all amount with interest.
    4. society formation,conveneyance,sales deed not done in specified time then builder should go in jail and customer should get this all done from builder by government.
    5. Rates at the time of booking can not be changed by builder.

    And any other?

    ReplyDelete
  3. He's a fool who didn't bother to check the fidelity of the project & builder in prior to paying the booking amount. He deserves punishment.

    ReplyDelete
  4. pl. check the history of the Builder. if he has not a good history then take wise action , if u have given a token amount by cheque then pl. do stop payment by informing to your bank.

    ReplyDelete
  5. Thats why Credentials of Builder Matter.. Investing with reputed builders atleast some gurantee of the project and its legal matters.

    ReplyDelete
  6. Even if builder is making noise, let him do so. You must wait for approval from bank which assures legal verification of property. If in case Customer is paying whole money by own then I suggest to do a property legal verification and also check future plan of city.

    If builder continues to threat you about cancellation let him cancel, and say thanks to yourself for saving rest 90% of future payment you could have made. As per current situation, builder wants customer and customer have enough choices to make. So no worries and learn a lesson from situation "Never trust a builder, trust his history".

    ReplyDelete
  7. Approach a lawyer & send him a legal notice to produce all the documents ie NA, Power of attorny, Approved plan & drawings, PCMC/PMC approval for constructions. He will refund all your amount immediately. By the way who is the builder & which project ??

    ReplyDelete
  8. Kolte Patil builders are really horrible people. highly unprofessional and inefficient with least concern about others. we booked in December and were told that in case we cancel we will get the full refund. 1 lakh Rs was debited from my account on 20th Dec. Since then we have been chasing them continuously to get back out money. First we were told that we will get the receipt for 1 lkah at home. Then we have to take that receipt and fill the cancellation form. We haven't got the receipt even after 2 months. My wife went to their sales office and filled the cancellation form on 10th Jan. They lost that form. She sent another cancellation form by email on 2nd feb. Since then they keep telling us that our refund is under process. Saleswoman from site office tells us to contact CRM and their phone keeps ringing. Utter nonsense people.

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  9. Wait for some time and keep follow progress of your financial institution.

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  17. There are so many comments by people that they liked this blog however there is one or two comments which I found is more useful and not many people know...
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    I would say that builders in India are not regulated and they are independent due to which they are uncontrolled and they do whatever they want. Nobody can do anything. Politician are also related to builder in monetary terms. Builders know our misery and they are laughing.. they know we can't do anything. Who are sufferer, normal people like us!

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  19. Hi Ravi,

    I have a serious question to which I have not received a clear response, maybe you could help.

    I wanted to know if it is legal for a builder to demand money from a person who has booked a flat on a higher floor (say 20th) for which he is not received approval, just based on the completion of the 10th slab and plastering till the 10th floor? If it is illegal to do so, is there any validity for the interest charged by him on the amount demanded and not paid? How does one approach such a scenario?

    Thanks & Regards,
    AR

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  23. Hi,
    even i had the same issue. i have had gone at PRA on 5th May. They still dont have NA clearance. sales person (Vikas- extremely rude person) told me that it will take another 4 months. I asked him what if you dont get the NA clearance? he said he will give me my amount back after deducting the sales tax. It means builder will use my 6-8 Lacks for god knows how much time. He will earn the interest & if anything goes wrong I will get money which is less that what i have given to them.
    What a policy PRA. God bless this company & their plans.

    Please note- Their website is incomplete. It does not have any information about past projects & team members. please be careful before investing. I have a doubt that it falls in lohgaon air space. I feel they will not get the sanction letter for 11 story building. For god sake.. Planes are not going to fly up because of your tall building. instead u will not get permission for high rise.

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  27. Air castles by Rama group has done the same thing to us. They say that now we have to pay the increased rate. We have lodged a complaint with hinjeadi police. We paid the initial 20% in last may and have not paid anything since then as they want us to pay extra or else cancell the booking and if we cancel they will keep 50% of the booking amount.

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