Interest charged by BPTP

[kristeena_jai]

Dear All,

Yesterday I got the interest calculation sheet from BPTP for my apartment in Park Floor-II, Sector -76.
I booked this flat in May 2010. After making payment of Rs. 4.23 lacs Mr. Rajnish of BPTP confirmed that their would not be any interest charged for till the bank start its disbursement. I had renewed my loan for 3 times in 9 months and given the renewal letters to BPTP everytime.
The project got all related approvals in March 2011. I got the mail from BPTP on 27 april 2011 stating that the banks viz. LICHFL, Axis Bank, PNB and HDFC are disbursing the loans and we can now apply for disbursement. I made one payment on 24 may 2011 of Rs. 14+ lacs through the loan amount after their(BANK's) thorough verification.

Now This letter has came wherein they have charged interest on every single payment delayed (and not considering the delay from their part and and their statement of not charging the interest). They charged Rs. 1,52,533 and given waiver till 23 Feb on 4 installments for Rs. 73505 and asking for payment of Rs.79,023 as on 29th may 2012.

1.My question is When their project was not approved how could the bank starts disbursement. and bank also takes its time to review all documents submitted by the builder. Still i got my payment made within in 20 days and balance 4 lacs payment in another 14 days through loan. Why should we be paying interest.

2.They had charged us extra EDC & IDC charges which should be refunded as per high court orders. who is going to pay us the interest for our money.

Anyone who has got the resolution please revert.

Regards
Kristeena

[harishmongia]

Dear Kristeena

We have also received a Demand amounting 117000. Now BPTP has proved they are Big Cheaters.

We did communications with BPTP wherein we informed them that Banks are not disbursing the amount.. and they replied in the month of April11 stating that Banks has starting Disbursing and we started the process of disbursement. Now they have charged the Interest from 23rd Feb11.

During those days, their senior leadership had given the assurance on not charging the Interest.

We all are planning to visit BPTP GGN office on Tuesday.. please let us know your contact numbers so that we can send u the communication if you are interested to join us.

Regards
Harish 9971666990

[anujft]

Hi,

Same is the case with RPS. They say we will chage only bank interest rate during that period when there was no disbursement from bank.

[gemdeepak]

Dear Mr. Harish

Same is the case with us also, me & my friend has booked flat in Park Floor Sec-77 in July 2008. we got the loan approved in Jan'09 and till April 2011 loan could not disbursed due to the incomplete approval/documentations available with BPTP. At that moment in many of the communications they confirmed that no interest will be charged for the allotees who have got the loan approval.

And now they have sent a Final Reminder indicating the interest for that period and also even after repeated reminders they are not agreeing to remove the interest charged on the revised EDC.

Please let us know how you are taking it up this matter with BPTP.

Thanks & regards


Deepak Kumar

[aquaregia]

Dear Friends,

Upon searching the Haryana Govt. websites on internet I have come across some documents that indicate that the interest amount which BPTP is recovering from us is actually the interest that colonizers (BPTP in our case) have to pay to the govt. on account of non-payment / delayed payment of EDC or Enhanced EDC amounts or other govt. related amounts. The documents indicate that colonizers were given the opportunity to payback these amounts to Haryana Govt. in installments. Haryana Govt., on various occassions, extended the number of installments due to one reason or other but levied interest ranging from 12% to 15% on due installments.

It is clear that recovering of this interest from us by BPTP is quite illegal. BPTP should pay this amount to govt. from its own coffers. Anyway this is my take on this matter, I may be wrong.

I would appreciate comments from the learned forum members, especially from Dheeraj ji, Ajay Yadav ji and other prominent GFWA members. Is there is any legal remedy ?

Regards,

Vikas Bansal.
vikkibans@gmail.com

[yadav_ajay]

Hi Vishal and BPTP members,

You are right, that Interest which BPTP is putting on Customer is actually payable by them due to delay in payment from their side.

As per calculation given by BPTP they are charging following Interest and other charges from each Unit holde (Floor, Villa, Plot or Flat Owner).

1. Interest on interim EDC @ 15% p.a. for 2 years
2. Bank Guarantee and Other Charges

Now my point is; Why “Interest on interim EDC @ 15% p.a. for 2 years” is being charged from Customer, while we already paid the EDC (interim) as and when Demanded by BPTP.

If BPTP not deposited the same to Govt. then Customer is not being liable to pay interest on the same.

- Even BPTP is Charging @ 18% interest from Customers for any delayed payment, either it be EDC or any other charges(BSP etc), then why Customer pay two times interest on same component.

- “Bank Guarantee and Other Charges” are the Security Deposit by builder i.e by BPTP to State Govt. so that if any delay in EDC payment then Govt. can invoke the Bank Guarantee and can recover their funds, so it is not customer liability to pay this charges.

These both charges are not payable by customers. So can’t be pass on to Customer for any failure at builder/BPTP end.

regards
Ajay Yadav

[BlessU]

Hi
Greetings

Absolutely right!!!

Regarding Interest-
Customer has signed contract with Builder and not with DTCP/STP. Further, payment of EDC by builder to govt, is guided by the licensing agreement which makes it clear to the builder about the schedule of payment of EDC by builder to govt. Department claims EDC from builder and not the buyer. The delay in payment to govt of EDC is on the part of builder over which BUYER HAS NO CONTROL. Therefore delayed Interest is payable by the builder and not by homeseeker.
Builder and buyer relationship is guided by the agreement which says that the buyer is liable to pay the taxes and charges as being demanded in the PAYMENT SCHEDULE or Construction linked plan. How is the buyer responsible for interest charged due to delay in payment of EDC/IDC/Cess/Service tax etc by the builder to the govt?? Builder religiously does charge delayed payment interest on outstanding demands as per "Payment Schedule". Payment by customer of EDC, IDC, Taxes, Cess etc are guided by this "Payment Schedule" which may be down payment, subvention, construction linked or any such method as is commercially agreed to between the builder and buyer.
Further, on reading the BBA CLOSELY, there is NO MENTION of payment of any delayed interest on EDC/IDC of any of the buiders
The question of interest on delayed EDC by builder to govt chargeable to customer is therefore ridiculous.

If the builder procures a buyer at a latter date, how can he claim interest for EDC overdue by builder for the period before the time when he acquires a new customer??

Regarding Bank Guarantee Charges
These are charges of the nature of Financial expenses and are part of Operational Business Cost. A company for running its business may need to furnish a guarantee from bank against commitments made by it. This may be to a supplier or a contractor or financial institute or govt agency etc. eg L&T would take up a civil construction contract from a builder against a BANK GUARANTEE. This does not mean that the builder would charge the expense of bank guarantee to Contractor from the buyer separately. Being of the nature of Operational Financial expense, this is a part of business cost and cannot be directly chargeable/apportioned to the customer. Charging of Bank Guarantee charges from buyers is also not mentioned anywhere is the BBA and infact cannot be legally covered in a Builder Buyer Agreement and is surely challenge-able.


Regarding EDC calculation- Efficiency %
Efficiency or % of utilisation of Total Area or saleable area, for which license is granted by the builder is the saleable area. Definition is available on DTCP website being reproduced as follows: Source http://tcpharyana.gov.in/ , Functions and Policies
"Residential Plotted Colony:-
a) The plotable area/saleable area in a plotted colony cannot exceed more than 55% of the area of the colony (inclusive of 4% commercial area for need of the residents of the colony) and remaining area is to be utilized for planning of roads, community buildings like schools, hospitals , utility buildings/sites and open spaces."
The above lays to rest all speculation, unless BPTP has kept difference of legal maximum limit of 55% and Efficiency 42 % being charged for calculation of EDC, AS GREENS.. (ie 55-42=13% of license area as additional greens). If BPTP were to keep this area green, this would be again violation of Licensing conditions as BPTP has agreed to stick to the APPROVED PLAN by DTCP which states
"[b][i]5585 Plots, area 1176752 Square Meters (290~ Acres) out of which ground coverage/plotted area of 627786 square meters meaning an efficiency of 53.35%[/i][/b] This DTCP approval was also the basis of EC approval and Environmental Impact Assessment https://docs.google.com/file/d/0B0CW4pub6d78YmRCelA0MGJwSXc/edit
The above Assessment clearly mentions that if there is any change in the "scope" of this township, a totally new assessment would be required. Changing in efficiency or approved plan accepted for EC approval and not informing to the very powerful Ministry of Environment and Forests is Illegal. Also to be verified is actual APPROVED Township MAP against ACTUAL allotted number of plots, and audit observations by DTCP of licensing conditions.. All these facts I believe are obtainable through RTIs, if we want to nail such frivolous claims by BPTP

Regarding IDC Charged
IDC charged by BPTP is absolutely wrong and clarification is due from DTCP. Amount charged per sq ft/yd is not matching with figure mentioned on DTCP site. Method of calculation is not explained by BPTP.

Regarding STP and Electrification Charges
These facilities are intrinsic to the proposal as mentioned in the agreement and are basic requirement of the Licensing conditions and the Environmental Clearance Certificate. These are basic components of a township without which a township CANNOT be defined or exist. These are also a part of common utilities for which land and assets were required to be apportioned by BPTP at the time of submitting its offer for BASIC SALE PRICE. The customer is supposed and understands these services to be provided at the doorsteps and can be legally charged for CONNECTION COST ONLY even if he has signed the BBA in good faith. Even if agreed in agreement, the method, costs, functions, division amongst subscribers without any calculations, reasoning, definitions is very much arbitrary and possibly challengeable in court of law. Making an Offer of Possession without Common utilities tantamounts to deficiency in service as promised in BBA.

Regarding Cancellation of Units
Please do take immediate legal help.. Filing as many FIRs as possible is the first step. The BBA mentions that your unit would be disposed of by BPTP to recover ANY COST (can assume selling cost/brokerage for resale, transfer charges etc.), Outstandings and EARNEST MONEY!!
Also mentioned in the BBA is "However, if the breach committed by the purchaser is rectifiable, then the purchaser may be given an oportunity to rectify the same upon notice by the seller/confirming party and the purchaser shall rectify the same within a period of 30 days...."

Regarding Delay Penalty by BPTP
Do not forget delay penalty before accepting any accounts statment, full and final or communication from BPTP. For plots, it is mentioned under clause of BBA, that Rs 5 psy is payable beyond 24 months of execution date of BBA. This is 100% legitimate right of the customer and business risk of BPTP and they cannot quote delay of external infra by HUDA under Force Majure. Neither was this informed by BPTP in any usually accepted communication method.

Regarding Refund of Interest on Retrospective Enhanced EDC
Not paying back is contempt of court as the CA memo was based on Court order. BPTP cannot hold back this amount without interest with mention of adjusting it against future demands, bills, charges etc. There is no clause in the BBA that any amount falling in excess will be held back by the company and that any such amount will not attract any interest payable to the buyer. Clearly, all those issues not covered in the BBA have to be judged by the generally accepted trade and business practices. The practice in this regards is that which is being followed between market constituents ie, HUDA, DTCP, Builder, Customer, Banks. The practice being followed is that no one given funds to another without any charge!!! Rather, the bba cannot be one sided and if the builder charges interest on outstandings, they are also liable to pay for any amount legally due to the customer. This should be applicable on any excess charged due to wrong calculation, PLC charged but not alloted etc.

Above are my POV and please do your own due diligence and seek proper legal counselling..
Paying of any demand, taxes, interest is individuals choice/prerogative and BBA be referred to.

Cheers