You can file a complaint in consumer court and take direction for the same.
Builder is not providing Indemnity Bond
Respected Sir/Madam, I have booked a flat in Western Avenue, By Kolte Patil in Wakad, Pune. I have done the registration as well. After registration in the LSR report come to know that there are 2 litigations against property. Based on litigations, LSR report sent to bank. In the LSR report suggestion to the bank is get the Indemnity Bond from Builder. Bank also sanctioned the loan by keeping to get Indemnity Bond from Builder condition. We requested builder to provide the Indemnity bond but builder is not ready to give individual Indemnity bond. Due to this bank is not going ahead with the disbursement. Now builder is asking to cancel the agreement. Due to this builders own mistake they are taking the cancellation charge of approximately 1.7L and registration cancellation 10%. When we booked flat they had not told there are litigations against property also they told they will provide all the documents bank will require. But now they are not giving those required documents. Could you please suggest me what action I have to take in this situation. I don't want to pay any cancellation money for Builders mistake. Please let me know if you need more information.
Asked 6 years ago in Property Law
Religion: Hindu
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11 Answers
Builder cannot deduct 10 per cent as he has failed to disclose pending litigation
he has failed to submit indemnity bond
file complaint against builder before consumer forum and seek orders to direct builder to refund your money with interest
In my view, in your case, your bank is at fault
Though the builder ought to have disclosed about the litigations, but he cannot be required to give indemnity for that
Its quite common that when any project is taken up by the builder, there is some or other litigation
However in absence of any court stay, the project proceeds and builder does flat bookings and collects money from flat buyers for use in the project
First you need to ascertain what kind of litigation is pending against the builder and is there any adverse order like some stay or interim order that is passed against the builder
Many a times there is some inter se disputes between land owners who make the builder a party to the legal proceedings
So the bank by requiring to obtain an indemnity from builder has gone a step further
If the builder has all approvals in place and there is no court stay against him, then i do not see why he should give the indemnity
The bank can always take an indemnity from you as the loan transaction is between you and the bank and the builder is not involved in it, unless it's some subvention scheme
You are advised to change your bank or offer your own indemnity to the bank
1. File grievance petition before the local Consumer Court, against builder for harassment, negligence and malpractice.
2. The above would set right the problem permanently and you will be able to claim back your amounts or force builder to issue documents required for loan etc....
Hi, you can file a complaint before RERA and seek refund ..
Dear Concern, I have gone through your queries and I observed on the basis of information provided by you that you are facing same problems as prevalent in real estate sectors. Builders are talking project /construction loans from bank and not repaying and hence ultimate buyers are suffering in registration even after payment of full amount but they are not able to get NOC from builders and lhence litigation started in bunches. In your case, the builder conceals the existence of pre-litigations before issuance of allotment letter and made false promises. However right now Real Estate Regulatory Authority is equipped with strong powers to impose penalty as well as launch prosecution against builder to redress the buyer 's grievance in short duration. Hence You can file the complaint before Real Estate Regulatory Authorities under Rera, Maharashtra at Pune Bench at address : 110 to 113, First Floor, Sayajirao Gaikwad Udyog Bhawan, Aundh, Pune - 411007. You can also lodge online complaint at www.maharera.mahzonline.com. Thanks for your concern. Feels free to contact further.
See in this case it is default on part of the builder so he cannot deduct any amount and also he is liable to apy interest as he has not disclosed the litigation give a legal notice for same to the builder in case on notice you can file a RERA complaint against the builder.
You are not liable to pay any cancellation charges to the builder as the cancellation is not done due to your fault, rather it is the breach on part of the builder.
Firstly, serve him a legal notice if he fails to adhere within 15 days of receipt of the legal notice, you should file a complaint against him in consumer court for deficiency of services and unfair trade practices adopted by him and seek entire refund along with interest, compensation and litigation expenses.
You are cancelling the booking due to the builder's problem that is due to the pending litigation which concerns with the builder alone.
Therefore he is liable to pay return the entire poking amount or to compensate the same properly in accordance with the law.
You can drag the builder to consumer forum demanding your full booking amount and also compensation for the mental agony you suffered.
Cancellation is due to builder, he is liable to return with interest. Complain to RERA. Aboslute liability is of builder to sell you obstacle free property, so builder is at fault since beginning.
Dear Sir,
Get issue a legal notice to the builder and get the Indemnity bond.
Indemnity Bond or a Surety Bond is an undertaking given by a party entering into a contract promising to bear the losses in case of breach of contract. When a party who is liable to perform the obligations in a contract refuses to oblige, then the defaulting party becomes liable to meet the costs of damages to the opposite party.
The general insurance policy is an example of Indemnity Bond where the authority issuing Insurance policy promises that it shall indemnify the party buying the policy in the event of a specific event.
Condition for the enforcement of indemnity bond
As long as there is no infringement in contract, the obligated party will not be asked to pay to the principal. The liability arises only when there is a default in the performance of duty specified in the contract.
Difference between an affidavit and indemnity bond
An affidavit is a statement taken on oath stating that all the statements are correct and no material information is concealed. On the other hand, an indemnity bond provides a surety that the party will be monetarily compensated in case of infringement of contract by the other party.
Here are some examples where Indemnity Bonds are significantly used
An Indemnity Bond is similar to an Insurance surety bond on many grounds. Just like when one party possessing insurance policy suffers loss then the genuineness of actual damage is looked into by the insurance agents in order to indemnify the party similarly when one party breaches a contract then the claim is decided based on the actual loss caused to the suffering party.
Another scenario is when a person loses a share certificate. One has to approach the share issuing authority so that the accounts can be frozen and financial loss can be prevented. It is required to apply for a duplicate share certificate for which one has to deposit an indemnity bond stating that he/she is the true owner of the share certificate. The indemnity bond states that the share certificate is genuinely lost and his request for issuing of a new share certificate be processed. The applicant also gives an indemnity of all costs and expenses with regard to the issue of new share certificate.
An Indemnity Bond is also provided to Company/Educational Institution at the time of alteration in the basic details of the employee/candidate. The applicant promises to indemnify any loss with regard to any further changes in the basic details of the applicant.
