Legal Question in Consumer Law in India

Price hike by Builder

I have taken 'build-and-transfer' kind of agreement with a reputed builder for a villa.

Following are some of the features of the agreement:

1. The construction is supposed to get over in TEN months excluding the delays caused for selection of tiles/paint and similar others.

2. The difference in the exorbitent price hike ( 25%) of sand and cement has to be born by the buyer.

However, its nearly 3 years now and still he has not given possession of the house. We have given more than 50% of the cost already. There were problems with the construction and accordingly we have sent several emails to the manager asking them to be rectified which till date has not been addressed. Also, he has never sent me any report on the progress of the construction anytime till this date!

Now the builder has sent a letter to us asking us to do the full payment. He has also increased the balance amount stating that the price of the sand, cement, steel and labour have increased over the period. He has hiked the total price of villa by around 20%.

Is the price hike by the builder justifiable?

Do I have a chance to fight him and pay only the originally agreed amount?

What do I need to do to fight the hike?


Asked on 9/24/07, 9:35 am

2 Answers from Attorneys

Re: Price hike by Builder

You may ask for details of expenses on account of cement,sand etc. and can demand the cash memos to confirm the expenses.You may also dispute the hike which was caused on account of delay in construction by builder.In case of need contact with details.professional charges are applicable.

Read more
Answered on 9/24/07, 12:52 pm
Homi Maratha N.N. Maratha & Co.-Advocates

Re: Price hike by Builder

Ask the details of the expenses from the builder and reasonable reasons from the Builder. You may contact in person. Professional charges are applicable.

Read more
Answered on 9/24/07, 2:31 pm


Related Questions & Answers

More Consumer Law questions and answers in India