• Builder unwilling to register undivided share in common area and not completing the balance works

1. I purchased a villa from M/s X, Cochin for Rs 1,25,00,000. He initially promised to deliver the villa by May 2015. Agreement was signed on 07/06/2015. The builder registered the villa and 7 cents land on 21/03/2016 after I paid the full amount of Rs 1,25,00,000. The value shown in the sale deed was Rs 49,00,000. The builder had given receipt for only Rs 75,00,000. For other Rs 50,00,000 no official receipt but hand written receipt. Before making the payment, I had deducted TDS of Rs 75,000 (1%) and issued form-16B to the builder. Builder handed over the key on 20/04/2016 and also the original sale deed to me. I am paying the building tax, land tax, and electricity and water charges after changing the ownership.

2. An advertisement appeared in newspapers of 05/01/2017 disclosed that UCO Bank was going to auction several properties of this builder including the villa sold to me as the builder had defaulted a loan amount of Rs 64 crores approx. 

3. Auction did not take place. The builder contested bank’s action in DRT. On 20/03/2017 he gave a letter from UCO Bank telling that his loan account with the bank involving this project was closed. How he closed the loan is not known. Might have replaced this property with some other properties in mortgage.

4. The villa given to me is not complete. Some civil works from builder side are pending. The estimated cost is eight lakhs. An amount of Rs 48,000 collected from me towards advance maintenance charges was not transferred to the association account though agreed in the signed contract. Hence I had to make the payment again.

5. Now the builder is not registering the undivided share in the common area though it was in the agreement. Swimming pool and other common amenities not yet completed. I doubt the common areas are still under mortgage. The builder is not ready to complete the balance works of my villa. He is not refunding the Rs 48,000. He doesn't give reply to my emails and letters. I am afraid that he may demand additional money when the swimming pool and other common amenities are completed and become operational. Immediately after registration, the builder had sent me an email telling that I have to obtain NOC from builder if I sell my villa otherwise there won’t be usage rights for the next purchaser.

6. Please advise me what I have to do in this matter. I have not yet started to live in that property as the civil works including some plumbing and electrical works by builder and cupboard works by me are pending. Not able to give on rent thus losing potential rent also. No income tax benefits as the bank did not release the already sanctioned loan due to mortgage by builder. I am paying maintenance charges @ Rs 74000 per year to the association. In a regd letter on 24/10/2017 I have explained all my losses due to the builder and demanded to refund me the amount of Rs 84,00,000 (125L-49L plus 8L being estimated cost of pending works), but no reply. Thank you.
Asked 7 years ago in Civil Law

8 answers received in 1 day.

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10 Answers

1) file complaint against builder before consumer forum

2) seek orders to direct builder to complete pending works

3) also register undivided share as per agreement

4) seek litigation costs and compensation for mental torture undergone by you

5) contact a local lawyer

Ajay Sethi
Advocate, Mumbai
96803 Answers
7810 Consultations

you have strong case on merits against builder .

file complaint before consumer forum as advised herein above

Ajay Sethi
Advocate, Mumbai
96803 Answers
7810 Consultations

This is a very sorry state of affairs in most of the real estate sector in INDIA.

However for this there is not much worry as a very effective legal remedy is in force.

Civil and criminal case is not a suitable option here.

Rather file a case beofre the consumer forum which is best equipped to handle this type of problem.

In the consumer forum you will redress for your every problem and in addition to that you will get adequate damages and compensation as well.

There would not scope to avoid the order of consume forum in execution case the forum can issue warrant of arrest to implement its order.

So meet an advocate and do as advised above.Such Cases does not take much time also to come to a logical conclusion.

Devajyoti Barman
Advocate, Kolkata
23198 Answers
510 Consultations

1. You may file criminal case against the builder u/s 120A,420,405,406,383 for not maintaining the clause as per the agreement.

2. File the recovery suit against the builder for the damages ( You can recovery entire cost of the suit from the builder )

3. If you initiate above steps then the builder could speed up the pending work and may try to settle the issue among yourselves.

Niranjan
Advocate, Bangalore
844 Answers
9 Consultations

It is advised that you send a legal notice to the builder, if he fails to fulfil his duties then file a case before the consumer forum thereupon praying that the builder be directed to complete the work and divided the share in the common area.

Also, claim damages for mental harassment and expenditure made on the lawyer.

Regards

Anilesh Tewari
Advocate, New Delhi
18090 Answers
377 Consultations

You may note that as per the facts described by you herein, you have a very strong case against the builder.

Contact a local lawyer and file the case.

Regards

Anilesh Tewari
Advocate, New Delhi
18090 Answers
377 Consultations

Approach the consumer forum for redressal of all your grievances which you hold against this builder.

However, send a legal notice to the Builder, giving him the last opportunity to him to take to take the remedial measures.

Vibhanshu Srivastava
Advocate, Lucknow
9659 Answers
307 Consultations

On merits, your case holds good and the consumer court will definitely show some indulgence to you.

Vibhanshu Srivastava
Advocate, Lucknow
9659 Answers
307 Consultations

If you have made the demand to the builder and have not received any reply you may either drag the builder to the consumer court directly seeking the relief and remedy or first issue a lawyer's demand notice giving the details with an instruction to settle the same within the time stipulated therein or to face the case in the court of law and consequences thereon

T Kalaiselvan
Advocate, Vellore
87004 Answers
2335 Consultations

If you suggest to file a criminal/civil case please inform me percentage chance of success

Criminal or civil case may not be a proper step, a case before consumer court may fetch yo the desired result at least to the closer level if not a 100% success.

T Kalaiselvan
Advocate, Vellore
87004 Answers
2335 Consultations

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