• Builder changing construction plan - expanding the project

Hi

Thank you for help in advance.

I had booked a flat in one of the A List builders in Bangalore in September 2017. At that point we were showed the completed design, construction plan, of the complete project including a detailed models of the flat, as well as a model apartment on site. Based on all this information and after ensuring that the land deeds and everything else was completely clean we booked a 3BHK flat in the project.

At the point of sale agreement:
Project area : 17.7 acres
Total number of units : 1608
Area of 3BHK: 1157 sq ft.
One clubhouse

Also, next to this project, the same builder had acquired land which we were told is a separate project where Row houses will be built and will have nothing to do with our project.

During past 1 year, we visited the site regularly and we were repeatedly told by their CRM team that Row Houses project is a separate entity.

However, through one of the buyers in our social community, we found recently that the builder has applied for approvals from several authorities for "Expansion of the existing project" out of which the Environmental clearance has already been received.

On pointing this out, the CRM people kept denying this But within the same week, we all received an email regarding expansion plan and the new proposal.

As per the new proposal
No. of units : 2170 (increase in units by 562 - which includes 127 row houses)
New blocks added : 1
New floors added to existing blocks : Total 14
Clubhouse : Only one, and moved to a different location(part of which will come under Civic Amenities area, relinquished to the BDA)

We as a group of buyers met them on site, and submitted our rejections of the new plan.
This is an act of cheating and a breach of trust from the builder side, and we do not agree for this expansion. Not only is the change in plan unethical, we are being forced to share the clubhouse with an increased number of residents.

Can you please let us know the legal rights that the current owners have in such a case.
Also, i understand that they are selling the new flats informing the new buyers about the proposed plan, and making them sign a document that they agree to it.

In this case the 2/3 voting of the buyers must be conducted for which only the current buyers should be considered and not new one, please correct me on this.

Also, if the builder somehow manages to show that they have received majority approval, what would be the legal course of action that the rest of the buyers can take.

Can we ask them to refund our money with interest, since this is due to a deviation from the Proposed plan and the Sale Agreement.

Please help us with this.

Thanks & Regards
A group of concerned buyers
Asked 6 years ago in Property Law
Religion: Hindu

First answer received in 10 minutes.

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6 Answers

1) builder cannot change the layout plan without consent of all flat owners

2) cancel your booking and seek refund with interest

3) if builder fails to refund your money file complaint before consumer forum seek refund with interest , litigation costs , compensation for mental torture undergone by you

4)n in the alternative file complaint with RERA authority and seek refund with interest

Ajay Sethi
Advocate, Mumbai
94522 Answers
7485 Consultations

5.0 on 5.0

Hiii, sir as per real estate act, the builder has to rely upon the brochure, lay- out map that was shown to the buyers at time of booking.. Any alterations in it , leads to criminal breach of trust and cheating ... The conduct of builder is illegal and barred under provisions of law .. 2) you should file a civil suit for permanent injuction against the builder and take a stay order so that he do not start over the construction and sell the units to new buyers ...3) you can file a case in the national consumer forum, and ask for the refund of your amount alongwith interest , as the builder has violated the terms of contract ..

Hemant Chaudhary
Advocate, Gurgaon
4630 Answers
67 Consultations

4.9 on 5.0

To put it in a nut shell the builder has cheated you, he had assured you in the beginning that your project would only comprise of 1608 units all apartments with one club house, on this assurance you had decided to buy the apartment in this project.

Now all of a sudden during the construction the builder decides to expand it and include Row Houses as well into this project to save on the club house construction cost, which tantamount to cheating.

You as the buyer/s can opt out of the project citing deviation from the original plan and seek for complete refund along with compensation from the builder, alternatively you could as a group of concerned buyers write to the builder to stick with the original plan, if the builder were to ignore your demands then you could take the legal route.

has the builder registered under the new RERA Act, if so you could seek redressal under this act as well.

Kiran N. Murthy
Advocate, Bangalore
1298 Answers
194 Consultations

5.0 on 5.0

Yes you can ask him to refund the money as the same is against the object of RERA and if he says that he will deduct certain amount, shoot him with a legal notice and thereupon lodge a complaint in RERA.

It is your flat, you agreed to purchase a flat on certain conditions and after seeing the proposal, if that proposal/ plan is changed you have every right to seek refund.

Regards

Anilesh Tewari
Advocate, New Delhi
18077 Answers
377 Consultations

5.0 on 5.0

Whether or not this receives approval of the majority buyer, this is an illegality against you for which the builder is liable to be booked under section 12 and other provision of the Real Estate Act. Under the said section, the a builder is liable to indemnify a buyer for the damages caused to him on account of any incorrect, false statement supplied to him by means of the project advertisement or prospectus. Your case is clearly covered under this section. File a complainer under section 31 read with section 71 of RERA.

You case is fit for seeking refund with interest. Also seek compensation for the harassment meted out to you.

Contact a local Lawyer.

Vibhanshu Srivastava
Advocate, Lucknow
9588 Answers
303 Consultations

5.0 on 5.0

If the proposed expansion by the builder is a deviated plan to the existing project and was not included in your original master plan and there was no whisper about such an expansion in the sale agreement or the conditions that were let known at the time of booking you have rights to object to this violation and breach of conditions.

You can protest this very strongly if you consider this as contrary to the conditions offered to you in the sale agreement.

You can issue a legal notice and intimate your decision to cancel the booking and demand the entire amount with interest from the date of payment.

If there is no response from builder you may drag him to the consumer forum demanding refund of your booking amount with interest along with compensation for the mental agony due to his deficiency of service and fraudulent activity

T Kalaiselvan
Advocate, Vellore
84716 Answers
2172 Consultations

5.0 on 5.0

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