Using money for one project to complete other
I purchased a new launch apartment from a builder in 2010 Jan. Builder has not completed the project still despite making 90% payment in 2012 June. I suspect builder has used the money collected to complete his other projects and not able to complete this due to lack of funds. This looks like ponzi scheme of different way. Is there any way I can expose the builder?
Asked 1 year ago in Business Law from Bangalore, Karnataka
1) you can move consume r forum against builder for deficiency in service
2) seek order from consumer forum to direct builder to deliver possession within stipulated period
3) also seek interest at 18%pafor delay in completion of project from date mentioned in the contract
4) also seek compensation for mental torture you have undergone
I have a case filed in state consumer forum in August 2014. This is still going on and not reached affidavit stage. It looks like it will take 3-4 months to complete. I wanted to know any other avenue to get speedier remedy.
Asked 1 year ago
1) case before consumer forum takes around 2 years to be disposed of
2) you have no evidence that money has been siphoned of by the builder for other projects .
3) let other flat owners write to builder to ask him for reasons for delay in completion of project .
4) highlight the issue in media . no builder wants negative publicity .
Thank you for the answer. I think only option will be to approach Media. I agree I do not have any evidence as I cannot access the accounting of the builder. This is a joint development project and land owners can ask for the details. I will approach them to get some details.
Asked 1 year ago
thanks for your appreciation . it is better all affected flat owners collectively raise their grievance with the media .
You have taken the right course of action. Pursue the case vigorously wherein you will get favourable relief of compensation, damages and speedy completion of project.
Do not concentrate on any other litigation just now.
1. You want to expose the builder or want the relief by either getting back the money you had paid or get the flat as early as possible?
2. Hope you have collected the brochure detailing the terms of sale including the payment and competion terms,
3. You can file a consumer complaint before the local District Consumer Dispute Redressal forum alleging deficiency in service and unfair business practice claiming early completion of the project and penalty for each months delay, damage, interest and cost.
1. Consumer Forum is the Forum where you can get the trial completed at the earliest in comparision to other Courts,
2. Contest what reason the opposite party has mentioned in his evidence in chief fittingly.
1. You are expected to have the brochure inviting buyers to book the flats,
2. Even if completition time is not mentioned in the said brochure, it has been held by the court that reasonable time for each step of completion can be specified by the Court.
don't indulge in media trial. there is consideration and it is already paid. Doctrine of promissory estoppel will apply in this case and builder is bound to complete this project. if you have no evidence then don't worry promissory estoppel will apply and court shall presume that builder has made contract to complete the project in specific time and also builder can't deviate this matter of delaying the project.
you have performed your part then section 53 A TPA will apply and you have right to bound him to perform the contract. Sardar Govindrao Mahadik & Anr vs Devi Sahai & Ors, payment of part of purchase money or even the whole of the consideration is sufficient act of part performance and court shall presume that payment was done with view to complete the worn in stipulated time.