Legal Advice Required – Breach of Construction Agreement with AMR Builders

Dear Client, 

You can insist that AMR Builders complete all agreed works at ₹2,000 per square feet. He cannot refuse items or reprice them unless the agreement has an escalation or variation clause, and extra payment is justified only for out-of-scope work you approve in writing. Ask him to itemise each disputed item and do not pay extra on oral approval. Moreover, you can hold the ₹5,12,000 balance until the work is completed and defects are rectified, but confirm in writing that you will pay on completion. Since the bank loan is a separate contract, tell the bank in writing that the work is incomplete and ask it to hold the pending ₹5,00,000 disbursement.

Send a legal notice through an advocate by registered post and email, demanding completion and rectification by a stated date, stating the agreement’s completion date if it has one. If he does not comply, file a complaint before the Tiruppur District Consumer Commission within two years, or a civil suit. You can claim compensation for delay, defects, the cost of completing the work through another contractor, interest, harassment and litigation costs. The documents you will need are the agreement with annexures, payment receipts and bank statements, loan documents, WhatsApp chats, dated photos and videos, and the building approval. 

I hope this answer helps, if you have any other query kindly do not hesitate to contact us. Thank you.

Dear Client,

Under the Indian Contract Act and the Consumer Protection Act, 2019, your builder is legally bound by the terms of the executed construction agreement and cannot unilaterally hike rates, demand extra money beyond the agreed ₹2,000 per sq.ft., or halt work to coerce payment. Since you have already disbursed ₹26,00,000 against incomplete and defective plastering work, you are fully entitled to withhold the pending balance until the milestones are completed as stipulated. You can immediately issue a formal Legal Notice demanding specific performance and handover by the deadline, failing which you may approach the District Consumer Forum or RERA/civil court for completion, rectification, and substantial compensation for delay, mental agony, and deficiency in service. To issue the legal notice and calculate the appropriate claims, we need to inspect your construction agreement, payment receipts, bank loan disbursement schedule, and photographic evidence, for which you may opt for a one-on-one consultation with our office.

Hope this clarifies your position.

OLQ LAW FIRM