Construction-Linked Plan (CLP)

With a CLP, the price of an under-construction flat is split into instalments, each tied to a stage of work: booking, agreement, foundation, each slab, brickwork, plastering, flooring and finally possession. When the builder reaches a stage, you get a demand letter. You, or your bank on your behalf, then pay that instalment.

A CLP keeps your money roughly in step with the building. If work slows, demands slow too. RERA adds two guard rails. Section 13 caps what you pay before a registered agreement for sale at 10% of the cost. And under Section 4(2)(l)(D), 70% of buyers’ money must go into a separate project account, used for that project’s land and construction.

A simple illustrative schedule might be: 10% at agreement, 15% at foundation, 5% at each of eight slabs, and the rest split across finishing and possession. Every builder sets its own; what matters is that it is in your agreement.

• That each stage is clearly described, so you know when a demand is fair.
• That the last instalment is due at possession, not before the OC.
• How demands are raised, and how long you have to pay.
• Interest charged if you pay late, and paid to you if the builder is late.
• Progress photos or updates on the K-RERA project page, which match each demand.

Your bank’s engineer usually checks the stage before releasing each disbursement.