File complaint against builder before consumer forum seek orders to direct builder to pay you Rs 15.61 lakhs with interest
2) also seek litigation costs and compensation for mental torture undergone by you
Builder not honouring buyback agreement
I and my wife had invested Rs. 10.40 lakh in a Unitech Scheme for allotment of plots in their Agra Plot Scheme through IFAN, a real-estate agency. The Agreement was executed on 4th November, 2014 and had a provision for the buyback after two years at a price that works out Rs. 15.61 lakh The buyback request could be sent within a month starting 4th November 2016. We sent the buyback request to Unitech. After reminders, their customer relation informed that our request had been forwarded to concerned department. After several reminders, customer Relations informed that concerned department is Commercial Department. Again, after several reminders, Mr Vivek Singh (Manager Sales and Marketing) responded but indicated that I could shift to some other scheme by investing further 51-60 lakh, which I declined. After further reminders, Mr Singh sent an email as follows (on 17th February): “In this regard we would like to apprise you that due to various techno commercial reasons we are not able to launch the project. While we still hold over 200 acres of land at Agra. At this point of time you have an opportunity to stay invested in the project and enjoy the commercial benefit when the project is launched. The second option is an alternate property at Noida/Greater Noida which are under construction and this could yield your investment much faster. Currently we have options starting from 51 to 60 Lakhs at the locations mentioned above. However in case you insist upon refund we would request you to kindly bear with us for some more time and would let you know as soon as your refund is processed.“ Since then, I have sent several reminders, last one on 8th May, stating that six months are already over, since buyback became due, and requesting them to let us know the date by which payment will be made to us, including interest, that becomes due in the interim period. There is no response from Unitech. I have been in touch with IFAN, who have been helpful and have also sent several reminders to Unitech on this. Finally, they seem to be helpless and on my query suggest sending a legal notice and filing a civil suit. Considering the amount involved, slow judicial process in civil cases, our status (NRI, do not live in India), and objective of getting the issue settled as early as possible, what is best option for us.
Asked 7 years ago in Property Law
Religion: Hindu
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8 Answers
1. In these circumstances filing a civil suit for recovery of money to claim the refund of principal amount with interest is the only remedy.
2. If there is inordinate delay in the disposal of the suit then you may move the High Court to get an expeditious hearing/
111. Well,the builder seems to be have dupes you to enter into this deal on false promise.
2.Howeevr nothing to worry since you have a written agreement on this.
3.So now file a case beofre the consumer forum and get your money back.
4.You would be additionally awarded with damages and compensation as well.
Your best option would be to file a Consumer Complaint In India, at Agra where the property is situated. First you must get issued a Legal Notice asking the builder Unitech to buyback or return the monies due along with interest and compensation WITHIN 15 days from receipt of the legal notice. On receipt if Unitech fails to reply or respond, then proceed to file the consumer complaint before the District Consumer Court at the earliest.
This would be your best and foremost remedy to get back the monies from the builder.
1. Unitech is in a mess financially and legally.
2. Recently there has been a order from Consumer forum directing Unitech to pay penalty to buyers whose fltas have not yet been constructed.
3. It will not be prudent bon your part to accept any of their offer to invest any further amount.
4. File a complaint case against Unitech before the local Consumer Dispute Redressal forum alleging deficiency in service and unfair business practice claiming refund of the amout due to you as per the agreed buy back scheme with interest, damage and cost.
5. It is a very good case to wijn and consumer forum disposes off cases much faster than civil courts.
You dont have chance to recover the money from the builders like this any money by the process of an out of court method
Legal approach to the issue will only fetch you the relief.
If you want to recover your money you have to strain and look for someone who will take care of your subject issue during your absence even it may be a court case.
First send a legal notice demanding yor money under the scheme which has been assured by the builder in the agreement, and then prepare for legal battle.
Thank you very much Ajay Sethi ji, Davessar ji, Barman ji, Murthy ji, Ganguli ji, and Kalaiselvan ji for taking out your valuable time and responding to my query. I find, by and large suggestion is to file the case in a consumer court (barring one advice to file a civil suit). That of course was my first choice too- however I did some research on options before putting up this query on Kanoon and wanted to share that with you to get suitable advice. The options I found included; 1. Consumer court: This of course could be one of the best options, if applicable in this case. Unitech has been under fire for delays in possession of apartments in several projects and unethical practices from consumer courts, high courts and Supreme Court, almost every forum having punished and fined them. Courts even asked for filing FIR against their Chairman and Managing Director for cheating buyers (criminal case). In January this year, promoters spent a day in Jail . Interestingly, after that they settled the case out of court with the complainants ( a couple). Again, April this year promoters were sentenced to three years jail by a consumer court in Punjab. In Delhi High Court alone, there were 40 cases against Unitech in 2016, and almost a thousand in consumer courts. There is enough information on the web about Unitech cheating investors and everyone- see for example about their managing director Sanjaya Chandra at http://zeenews.india.com/tags/sanjay-chandra.html So their credibility is pretty low in courts. I had no time to do this detailed homework before investment, as I depended on IFAN (the real Estate and financial advisory), who got me into this mess. However, I wish to draw your kind attention to the following article; http://go4reviews.in/2015/06/success-rate-of-consumer-cases-against-builders/; Success rate of consumer cases against builders ; success rate in Noida is as low as 10% primarily because consumer court rejects the cases where apartments were bought for investment. I do not know what category my case will fall in, and therefore, want to be sure if this option is applicable in my case. 2. The Real Estate Regulation Act (RERA) became operational from 1st May 2017. Unitech head office (who I am communicating with) is in Gurgaon, and Haryana has already notified RERA. UP has also notified RERA (plots are supposed to be Agra). The builders are required to register every ongoing and under-construction project within 3 months. Not clear if Unitech has registered it so far. May be not, since they mention they have yet not launched it. Since I have signed Agreement with them, not clear if RERA could still consider this. There is some indication in Clause 12 of RERA that it could be considered. However, RERA authorities probably have not been appointed so far. I thought, if applicable in my case, RERA could be a good option. From my experience of working with an another sector regulator in India, the case can be decided quickly (even quicker then consumer court) by the regulator. I need to know applicability of RERA, if project has not been registered by Unitech. 3. Filing FIR for cheating; Haryana is quite strict in taking action against builders with CM ordering action against errant builders. In fact, in his first meeting the CM had ordered action against Unitech. But not sure where it (FIR) will finally lead to. 4. Filing a case in a court; Can it be a criminal case for cheating , which courts have ordered in several cases of delay against builders? If for some reason, it is not feasible, it could be a civil suit, which is my last choice considering delays. I am interested to know the following; 1. Best option for us, considering that we are NRI, and will be difficult come personally. 2. Considering that Unitech head office is in Guragaon, and plots were to be given in Agra – but project is yet not launched, if a case is to be filed, where it should be filed? Can it be a criminal case of cheating? 3. If a case is to be filed, depending on option, we would prefer to have a payment model where we pay an agreed percentage, when we finally get the money, and only a token payment in the beginning. Is that kind of model feasible? Once again, many thanks for your time and support.
Asked 7 years ago
1) in your complaint before consumer forum you should specifically mention that you booked the plot as you wanted to construct house and reside permanenlty in the said house . it was not bought for inevstment purpsoes
2) each state has framed separte rules for RERA . wait for registration of your project with RERA by unitech within period of 3 months
3)dont file cvivil suit . it would take 15 years to be disposed of
5) you can simultaneously file complaint of cheating against Unitech .and its directors in Agra . the agreement entered into by you with Unitech would contain clause as to jurisdiction
6) charging percentage fees depending upon results is illegal in india
Success rate of consumer cases against builders ; success rate in Noida is as low as 10% primarily because consumer court rejects the cases where apartments were bought for investment. I do not know what category my case will fall in, and therefore, want to be sure if this option is applicable in my case.
Matter of fact you never gave a patient thought before buying or investing into this project, but for initiating legal process you seem to hesitate worrying about success rate and other issues which are unnecessary.
You should go ahead with the legal action as proposed if you want to have relief and remedy to this issue.
I thought, if applicable in my case, RERA could be a good option. From my experience of working with an another sector regulator in India, the case can be decided quickly (even quicker then consumer court) by the regulator. I need to know applicability of RERA, if project has not been registered by Unitech.
RERA is a new authority and ther is yet a decision by RERA on any matter referred before it so far in the country wherever it has been launched, hence a wait and watch will be the situation as of now.
Filing FIR for cheating; Haryana is quite strict in taking action against builders with CM ordering action against errant builders. In fact, in his first meeting the CM had ordered action against Unitech. But not sure where it (FIR) will finally lead to.
Criminal cases are basically punitive, however yo ave to see whether you want them to be punished or to recover your investment
1. Best option for us, considering that we are NRI, and will be difficult come personally.
You can entrust the job of prosecution to your relative by authorisng him/her through a power of attorney deed.
This will take care of the case during yor absence on the dates of hearing.
2. Considering that Unitech head office is in Guragaon, and plots were to be given in Agra – but project is yet not launched, if a case is to be filed, where it should be filed? Can it be a criminal case of cheating?
The place where the cause of action has taken place is to be ascertained. If you have paid the amount at Gurgaon then you can drag them to Gurgaon court itself.
3. If a case is to be filed, depending on option, we would prefer to have a payment model where we pay an agreed percentage, when we finally get the money, and only a token payment in the beginning. Is that kind of model feasible?
Once again, many thanks for your time and support.
You may have to take up this dealing with the advocate who would be willing to take up your case on this contractual agreement