• Autocratic behavior and GST demand by our builder

Sir, We had given our land to a developer for development in 2013. I need your advice on the following two issue, which we are suffering from the builder till now -

1. For sake of my job, we have stayed away from my hometown and visit yearly. We found that The builder changes the building plan without informing us and he starts selling the flats without alotting the flats of our part to us. He even doesn't show us our flats, when I called him to fix a time so that we can go there and see our flats he denied. Now, he stops to pick up my phone. He is working in an autocratic manner. Please advice what should we do. 

2. In the agreement, the developer was agreeing to pay all our cost. 
( The clause in the agreement is - "That all cost, charges expenses, legal cost, stamp duty, registration fees, expenses for advertisement, etc of the first party shall be borne by the Second Party" ). 

The agreement has been expired on August 2017, but the building is not ready till now. The builder confirms that he will handover our allotted flats on August'18. Now he sends the message to my mother who is the landowner and asking a big amount as GST for our flats. I like to know since he had agreed to pay all our cost, should we pay GST to him, Can he deny to hand over our flats if we deny paying the GST ? please advice.

I appreciate your valued advice in advance

Partha
Asked 7 years ago in Civil Law

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7 Answers

1. the actions on the part of the Developer is certainly not as per the spirit of the Development Agreement, if any. if there is no Joint Development Agreement then you will be in problem to get relief.

2. In either case if the developer is trying to cheat you or your rights in your allotment of fats which is most likely then file a case before the consumer forum seeking remedies which you are getting deprived of.

3. To keep pressure on the developer you should seek injunction on the developer so he is estopped from selling his allotted flats.

4. In the consumer forum case you can claim the costs which you are entitled to get form the developer.

5 So do not wait any longer and file the case as advised above.

Good luck.

Devajyoti Barman
Advocate, Kolkata
23653 Answers
537 Consultations

1) As per Section 14, any alteration in the plans and specifications of an individual apartment, is permitted only with the prior written consent of the concerned Owner

2) the Real Estate (Regulation and Development) Act, 2016 (RERA) has proposed heavy penalties on builders who will henceforth either delay their projects or won’t comply with RERA norms.

For instance, RERA recommends imprisonment for a term which may extend up to three years, or fine which may extend up to 10% of the estimated cost of the real estate project, or both, in case of non-compliance with the Act. Moreover, in case of any structural defects arising within five years of handing over the possession of project to buyers, developers will be liable to rectify such defects without further charge.

You Can file a complaint against Develper under RERA ACT.

Mohammed Mujeeb
Advocate, Hyderabad
19325 Answers
32 Consultations

1. First you can send builder legal notice to hand over your share of the flats and do need ful. I'm case he is not.ready to do.if any power of attorney give to builder.csn be cancelled.so he won't be able.to.sell.further flats.

2. No gst can be collected from you as you are receiving flat as share of land that is consideration amount.for land. No.gst payable by you.

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

It is necessary to peruse agreement signed by you with builder to advice

2) you don’t have to pay any GST for self Occupied Flats in JDA as there is no sale transaction involved.

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

Dear Client,

Act of builder amounts to cheating and fraud, File FIR u/s 420, 406 IPC.

Or file suit of specific performance or issue him legal noitce for cancellation of agreement for violating terms of agreement.

AS per terms of agreement, all costs will bear by him. And its JDA than how come it got expire in 2017 ?

Yogendra Singh Rajawat
Advocate, Jaipur
23079 Answers
31 Consultations

1. If the builder is violating the terms and conditions of the development agreement, you may first issue a legal notice demanding explanation from the builder on this and also to rectify the irregularities you have observed or else to stop the progress of the construction or the development project.

After that you can drag him to the consumer court for relief, remedy and compensation.

2. You can mention that in the consumer court case.

3. All other issues will be clarified if you send a legal notice seeking his explanation based on the breach of agreement conditions.

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

1. ideally the builder should not be allowed to allot flats to his buyers before first allotting your flats to you

2. builder can change the building plans but your carpet area entitlement should remain the same

3. GST payable on allotment agreement for allotment of flats of owner's share has to be borne by the builder alone

4. you will have to file a suit against the builder

5. the builder has also delayed in handover of possession of your share of flats

Yusuf Rampurawala
Advocate, Mumbai
7899 Answers
79 Consultations

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