Builder cancelled the plot due to delay in registration
I booked two plots in Bangalore with one builder in mid 2012 with 25% down payment. Builder promised me that they will get all approvals from BMRDA within 6-9 months and then we can go for registration. I applied for an bank loan for the rest of amount and my loan got approved. After that whenever i was asking about the registration, they keep telling me this will be done in next 3 months. Builder got the BMRDA approval for 60% of plots in 2014, but my plot was not there in that 60%. Builder ask me to wait for some more time. In meantime, i moved from Bangalore to Germany. In Feb 2015 end , builder told me that we are ready for registration. I get this after 2.5 yrs of waiting, i checked with hdfc bank and they told me that your loan is not valid as you are an NRI now, so you have to apply again for loan as an NRI. I applied again and it took me around 1.5 month to get loan approved. Just 2 days before the loan get approved, builder sent me a mail that either you register today or we are canceling your plot, i asked them to wait for a week, but they canceled my plot and now builder is not ready to register and offering me my 25% initial money back. Please suggest me what can i do here.
Asked 1 year ago in Property Law from Germany
1) you can either accept the builder offer of refund of 25per cent advance payment or move consumer forum against builder
2) you can seek directions that builder be directed to register agreement in your favour
3) your loan had been sanctioned long back in 2012 but on account of builder fault loan was not disbursed
5) you can also seek compensation for mental torture undergone by you
6? you have good case on merits builder cannot act arbitrarily and cancel agreement as per your wins and fancies
Did the entire communication of deferred construction in the mean time happen through written correspondence or verbal exchange?
In case written correspondence was at play then you have a strong case. Your only remedy right now is to sue for specific performance of the agreement and damages. You can also take the prayer that the delay on your part if any was caused because of the initial delay on the part of the builder. And according to laws of contract the agreement becomes voidable at your option and not the builder's hence he cannot claim exception and if you want you can enforce specific performance. You may also claim for damages for the delay resulting in the cancellation of loan.
But if you wish to do so then you must not accept the 25% money back. Once you do so you will repudiated by your action. But it will also be prudent to bear in mind that this will entangle your 25% initial payment in litigation and at the end of the day you can have a strong case or a weak case but never can in law, any lawyer assure you of a case that is 100 % secured. So whatever minimal risk be, a risk still will loom large over your initial payment if you choose to proceed with litigation.
Hi, there was a deficiency in service on the part of the builder and builder can not cancel the plot without giving reasonable opportunity to register your plot so issue legal notice ask them to refund the amount or other wise register the plot after taking full amount.
2. If the builder fails to comply then you can file a consumer complaint for deficiency of service and ask them to refund of the amount.
Thanks for the valuable answers.
I do not want my initial money back, as the prices are increased by 70-80%, and i will be in big loss.
I also offered interest to the builder on the delayed 1.5 month from my side.
I have all my communication in mail with the builder.
Presently i am in Germany, can i file a consumer complaint forum without me physically present there?
Asked 1 year ago
Hi, we can file a complaint without your absence also but we need documents and once we go through the documents we will help you to file a complaint in the consumer forum you just sign the vakalth and complaint copy and sent to us.
1) as mentioned earlier you have good case on merits
2) your lawyer can send you papers for your signature have it attested before Indian consulate
3) you need not remain present on each date
4) you can also give power of attorney to family member to attend complaint before consumer forum on your behalf
You may file a consumer complaint but a consumer complaint wont enforce you agreement of the flat. A consumer court can award damages but the specific performance which can get you your flat has to be through a suit court.
1. The action of the builder to unilaterally cancel the allotment is illegal in as much as he was bound to give you a reasonable time to take all the necessary steps for the registration process.
2. You can move to court or the consumer forum to recover your advance with interest or to obligate the builder to register the property in your favour.
1. You cannot file it from Germany. However, you do not need to come to India to file the case as it can be done by your lawyer.
2. The e-mail communication can be used in the court.
1. You shall have to file a specific performance suit against the builder who is refusing to register the plot in your name,
2. You can slso lodge a police complaint against the builder for cheating you.
1. Consumer Dispute Redressal Forum can not hear complaints in connection with landed property,
2. In your caseit is a plot of land. So, it is out of the perview of Consumer Forum,
3. Had there been a structure on the said plot mentioned in the sale agreement or booking document, you could have filed complaint case before the Consumer Forum.
Consumer is complaint is not a remedy in this juncture. You have to file a specific performance suit against the builder who is refusing to register the plot in your name,
You have to write a power of attorney to your close relative and attested the same in embassy. With the light of Power of attorney ;your close relative can file a case here for getting a remedy.