• Builder cheating and not giving corpus fund to association

It has been two months since start3d association and builder was saying he will soon give corpus fund of about 23 Lakh soon.
Yesterday he sent a stamp paper document stating that association will be handed over corpus fund and a partial amc in instalment provided we sign the document.
Document says we don't involve or disturb his activities as well there's a lot of pending works and defects in apartment about which nothing has been mentioned .
It's a kind of blackmail that either we sign the document to get corpus fund which belongs to association as per our sale agreement it has to be handed over to association.
Asked 6 years ago in Criminal Law
Religion: Hindu

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14 Answers

Most builders are facing financial constraints 

 

it it is better to accept corpus fund in instalments 

 

3) litigation is long drawn and expensive proposition 

 

4) in alternative complain to RERA against builder and seek orders to hand over your corpus fund 

Ajay Sethi
Advocate, Mumbai
99776 Answers
8145 Consultations

You do not have to accept the corpus amount in installments. Issue legal notice to the builder to do the needful, if he doesn't adhere file a complaint against him in RERA or Consumer Court in order to make him rectify the defects in the apartments as well as return the corpus fund.

 

Siddharth Jain
Advocate, New Delhi
6617 Answers
102 Consultations

Hello, 

If the builder is not giving the corpus fund then send a legal notice to the builder and if he does not do the needful thereafter also then file a case before the district consumer forum for unethical practices and deficiency in service on part of the builder. 

 

Regards 

Anilesh Tewari
Advocate, New Delhi
18103 Answers
377 Consultations

Criminal complaint for the offence of criminal breach of trust and cheating can be given against him under section 406 and 420 of Indian penal code, though it is a consumer case.

Siddharth Jain
Advocate, New Delhi
6617 Answers
102 Consultations

Yes, you can file a criminal case but since it is a civil matter mostly, the police might refuse to lodge a complaint. 

Best remedy will be to approach the consumer forum. 

 

Regards 

Anilesh Tewari
Advocate, New Delhi
18103 Answers
377 Consultations

You can file complaint of criminal breach of trust against your builder . Criminal cases take 10 years to be disposed of 

 

2) hence advised to file complaint against builder before RERA as it would be disposed of in 3 months or so 

Ajay Sethi
Advocate, Mumbai
99776 Answers
8145 Consultations

You can go before consumer court or file cheating complaint against him.  Consumer court is better remedy

Prashant Nayak
Advocate, Mumbai
34514 Answers
249 Consultations

See the association can deny to accept his unreasonable terms , association can approach the RERA authority and can file a complaint with RERA authority or alternatively a consumer complaint can be filed. 

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

See criminal case for same shall not be maintainable it is better to take RERA recourse. 

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

the builder has to handover the maintenance fund or corpus fund to the apartment owners association.

You can file complaint before district consumer  forum against builder...

 

Mohammed Mujeeb
Advocate, Hyderabad
19325 Answers
32 Consultations

Better, approach consumer forum. 

Mohammed Mujeeb
Advocate, Hyderabad
19325 Answers
32 Consultations

Dear client 

You can file a criminal complaint against the builder for breach of trust by agent as the builder is agent for delivering the property and promises he done by way of agreement. And also complaint against him for getting signature on papers by blackmailing you all. 

Also you can file recovery suit of he doesn't return the corpus fund to association in time. 

Mohit Kapoor
Advocate, Rohtak
10686 Answers
7 Consultations

Your association do not have to budge to any pressure from the builder.

If the builder is not cooperating then he may be taken to task.

He can be dragged to consumer forum for the deficiency in service as well as a money recovery suit can be filed in the civil court for the corpus funds.

You may discuss with a local advocate and proceed on the basis of suggestions received.

T Kalaiselvan
Advocate, Vellore
89978 Answers
2492 Consultations

This may not attract criminal provisions becasue he will easily escape stating that he has already promised to return the amount and moreover this is of civil nature, hence you may decide judiciously to deal with this accordingly.

T Kalaiselvan
Advocate, Vellore
89978 Answers
2492 Consultations

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