• Redevelopment DA agreement

Society members have filed a petition against a builder to cancel a DA and POA. A 11 storey building is incomplete to 6 th floor. Ideally, it has 60 flats, 27 society members(existing tenants), 15 new bonafide purchasers (having new flat registered), rest 15 investors without flat registration and just allotment letter.

1)What would happen to 15 bonafide purchasers(having flat registered) in case DA and POA is canceled by HIGH court? Are they still the owner of the flat even if DA is canceled?
2)What about the 15 investors who have not registered their flat and just have allotment letter? Are they entitled with society?
3)We are in process of filing an intervention application in the existing petition to consider as party.
4)Can the court without analyzing the account details of builder cancel the DA and POA?
Asked 8 years ago in Property Law
Religion: Hindu

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3 Answers

1. Even if the DA is cancelled it will have prospective effect making their deed and possession safe from the court proceeding.

2, if the DA is cancelled then their sale agreement also gets cancelled making them entitled to get full refund of money they paid to the builder.

3.yes,the purchasers and allotment holders must intervene as party to this proceeding in court.

4. No, the court is unlikely to cancel the DA and is expected to give it chance to complete the constructions within a time frame.

Devajyoti Barman
Advocate, Kolkata
23659 Answers
538 Consultations

even if DA is cancelled the interest of bonafide purchasers would be protected . they have purchased flat by regd sale deed after DA and POA was executed between builder and society

2) 15 investors who have got allottment letter from builder would also be entitled to flat in the redevloped society

3) court would consider your arguments before passing any interim orders

Ajay Sethi
Advocate, Mumbai
99964 Answers
8159 Consultations

1. If the high court is cancelling the Development agreement, the fate of the other 15 bonafide purchasers will be decided based on their petitions seeking solution by them accordingly.

2. Those 15 people have to file suit seeking their reliefs and solution to their problems and the court will decide their cases based on their merits and documentary evidences in their possession.

3. You can file an implead petition to implead you as necessary party to the suit.

4. The court will hear both sides and then only will decide the case before it on merits.

T Kalaiselvan
Advocate, Vellore
90165 Answers
2505 Consultations

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