Undue escalation charges by Developer after booking the Apartment

[vzuzarte]

I bought a apartment from the developer.
There was no mention of esclation clause in our agreement. The developer is now asking for esclation cost which is 60% of the apartment cost, else he is cancelling the apartment allotted.

Please let me know the recourse and case studies if any.

Thanks,
Vincent

 

[expert]

RE: Esclation charges

Usually the developers are professional and experienced so it is very unlikely that there may be any lapses in the agreement prepared. It is we who are novices when buying apartments which we buy once or twice in whole life.

Nevertheless escalation clause is not there in any deals like buying property or cars etc. Because once you're in net, you've no choice but to pay the amount which is monopoly.

I suggest you file complaint in the consumer forum in your district and ask the judge for stay on cancellation of your booking. You can yourself do it. No need of lawyer. I suggestion you look for other customers like you and form a group. Unity has power.

 

[vzuzarte]

RE: Esclation charges

Usually the developers are professional and experienced so it is very unlikely that there may be any lapses in the agreement prepared. It is we who are novices when buying apartments which we buy once or twice in whole life.

Nevertheless escalation clause is not there in any deals like buying property or cars etc. Because once you're in net, you've no choice but to pay the amount which is monopoly.

I suggest you file complaint in the consumer forum in your district and ask the judge for stay on cancellation of your booking. You can yourself do it. No need of lawyer. I suggestion you look for other customers like you and form a group. Unity has power.

Thanks,
The developer has an arbitration clause in the agreement, wherein he has specified that any breach by any party. The arbitrator needs to be referred. Is it necessary to start arbitration proceeding or go directly to the consumer court.

Regards,
Vincent

 

[expert]

RE: Esclation charges

Who is the arbitrator? I suggest you go to arbitrator now and see what comes out. I don't think you'll need to follow it. But before the developer cancels your apartment you need to file complaint in the consumer court so that they can stay this cancellation.

 

[vzuzarte]

RE: Esclation charges

Who is the arbitrator? I suggest you go to arbitrator now and see what comes out. I don't think you'll need to follow it. But before the developer cancels your apartment you need to file complaint in the consumer court so that they can stay this cancellation.

Thank you sir for your guidance.

Arbitrator is Mr. S.M.Patil an Advocate appointed by the developer. He will favour the developer only.
Time given by the developer is only till 15th Oct 2013. I suppose it will not be possible to ask for an hearing and stay the cancellation. I have paid almost 95% of the consideration till now. He has given only 3 choices.
a) Pay escalation charges one time.
b) Pay escalation charges within 3 months in installments.
c) Cancel flat and get 9% simple int only. I have paid lot of service tax, VAT charges apart from Stamp duty.
If no response the default will be (c) and money will be refunded.

What should be done under these circumstances.

Regards and thanks.

Vincent

 

[expert]

RE: Esclation charges

Go and file in the consumer forum. First prepare a detailed complaint with all valid proofs. Proof it for 1-2 days. Show your friends and relatives and let them understand your problem in neutral way.

You need to have 3-4 copies of your complaint plus 1-2 envelopes, stamps, copies of proofs and a DD of small amount. First consumer court will send your application by courier to the opposite party, then they'll reply etc. It'll take 1-2 months. I suggest you pay some Rs. 50 to government clerk to help you guide about the process. They won't charge more.

Just remember in worst case the court will ask the developer to pay you your amount plus some 8% interest and also the service tax, VAT charges etc.

 

[vzuzarte]

RE: Esclation charges

Go and file in the consumer forum. First prepare a detailed complaint with all valid proofs. Proof it for 1-2 days. Show your friends and relatives and let them understand your problem in neutral way.

You need to have 3-4 copies of your complaint plus 1-2 envelopes, stamps, copies of proofs and a DD of small amount. First consumer court will send your application by courier to the opposite party, then they'll reply etc. It'll take 1-2 months. I suggest you pay some Rs. 50 to government clerk to help you guide about the process. They won't charge more.

Just remember in worst case the court will ask the developer to pay you your amount plus some 8% interest and also the service tax, VAT charges etc.

Thank you sir,

I appreciate your suggestion. I shall do the needful.

Regards,
Vincent.