Mr. A is the owner of the land, and gave rights for redevelopment to Mr. B who is builder. Mr. B sold flats of his share and including flats of Mr. A illegally by doing double registration (selling same flat twice), and committed fraud. Now Mr. C, who is third person, wants Conveyance from Mr. A who is owner of the land. Can people who are victim of the fraud committed by Mr. B claim thier compensation from Mr. C? Can Mr. C get in trouble from the claims, claimed by clients of Mr. B?.
The property issue is in Mumbai city.
Asked in Property Law from Mumbai, Maharashtra
1) conveyance By A will be in favour of society formed by the flat owners who have bought flats from B
2)those who have been defrauded by B can file complaint of cheating , criminal breach of trust against B .
3) A has only granted redevelopment rights to B and was not party to frauds done by B
1. A person can never be held liable for fraud committed in his name unless he undertakes such guarantee like the bank liable for compensating his customers even if fraud is done by a stager.
2. In your case the unless A agrees, C can not compel him to execute and register any document.
No.'C' can never be troubled for the claims by clients of Mr. B.
1. All the victims of the fraud committed by B can file criminal complaints in addition to filing a suit for recovery of money and damages against B.
2. C is not liable for the frauds committed by B.
3. A is not bound to execute a conveyance in favour of C.
A. B has committed fraud and criminal breach of trust, hence B is the only liable to pay compensation or damages.
B. C is the bonafide purchaser and not liable for any acts of the B
C. As per your statement, A has given the land in favor of B for the purpose of development, hence C cannot compel to execute Conveyance with respect to the same.
1) What if Mr. A terminates the redevelopment agreement with Mr. B, and then Mr. C takes the conveyance from Mr. A. Is this possible?
2) Will there be any claim on Mr. C if conveyance is transferred to Mr. C?
3) How can Mr. C takeover the conveyance from Mr. A, if it is a good proposal?
Asked 2 years ago
1) if A terminates agreement with B then C can take over the project and enter into fresh redevelopment agreement
2) however please note that in respect of all flats sold By during period of agreement A would continue to be liable . inorder to protect its interests A would insist all liabilities be taken over by C
3) wait for termination of agreement by A . let POA be revoked and duly cancelled by B
4) unless you are getting property at a pittance avoid the deal
1. Here A has executed agreement with B for development and sale of B's portion of the developed property,
2. B is responsible for the fraud committed by him on his clients,
3. Now, when A had already executed a development agreement with B with specific terms, he may not be in a legal position to convey the said property in the name of C.
1. If the development agreement is terminated by A and all the stake holders like his clients are made party in the agreement, then A can enter into a fresh agreement with C,
2. When A has already executed development agreement with B who in tern has executed & registered sale deeds with his clients, the title of those sold flats can not be conveyed to C.
A has development agreement with B, B has no right to alienate that property. If he did so he committed fraud. under sec 5 TPA "B" has no right to transfer that property. if C get conveyance from A then he has better title on that property against any person and no one claim for compensation from C because he is due holder and owner of that flat. if A cancelled that agreement with B then B has right to specific performance of that agreement.