Hi - This is a question pertaining to a property purchase in Kolkata, WB - so shall encourage lawyer friends from Kolkata/West Bengal to respond appropriately.We had booked a flat (WITH THE PURPOSE OF STAYING AND NOT AS INVESTMENT) from Indiabulls Distribution Services Limited, of super built-up area of 919 sq. ft. and also made necessary payments amounting to 30% of the total value by September 2017.As per the ensuing sale agreement with the developer, the construction was supposed to have been completed within 36 months that can be extended upto 6 months. However, in April 2018, the construction stopped and it has not started till now (14 months stoppage). -The marketing executives from Indiabulls who sold us the property have left the organization. -The representatives from the developer have also been replaced. -The developer's website and organisation emailds are not working. -As a result, I am seriously inconvenienced financially, as I am having to pay both monthly EMI and rent at the same time. -It has also emerged that the developer has dishonored payment to a customer (direct customer to the developer not bought via Indiabulls) on account of his cancellation due to which legal notice has been served to him. We have been following and meeting up with developer and Indiabulls for 6-7 months and got several versions of the reason behind the stoppage.It has appeared that the root cause behind the stoppage is scarcity of funds (although as per Indiabulls around 100 nos. flats had been sold). Finally in June 2019, we have received a commitment over email from the developer that work will commence from September 2019 with a high level estimate of the completion timelines and there is a mention of target of February 2021. They have also mentioned that an agreement of sale as per the WBHIRA Act will be produced to us shortly and we will need to sign as per the given terms and conditions. (Not sure what is going to happen to the existing sale agreement). YOUR NEUTRAL AND UNBIASED OPINION WILL BE HIGHLY APPRECIATED : -Is it advisable to remain invested in this property or go for the process of refund ? What will happen if there is a stoppage again after resuming work ? As of now we have paid 30% - what will happen if they stop construction again, after taking 80% of the total amount ? -Is the process of refund going to be simple ? Since the developer is not a significantly renowned name, we are quite skeptical about whether the refund would be possible ? -If the project is indeed getting registered in HIRA, should I not be worried about my payment to the Developer, getting forfeited? -What are the restrictions in HIRA that prevents/preempts any illegitimate transaction that might again cause delay in construction ? -IS Due diligence service available from lawyers (wherein the lawyer can inspect all documents and meet the developer on my behalf and demand for corrections)? SERIOUSLY INCONVENIENCED - PLEASE HELP.
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First of all get the names addresses of all the directors of the company. This give you confidense if something goes worst. You can file case against directors in personal capacity if company is wound up in future.
Under Rera you are eligible to get your Money refund with interest if project is not completed or delayed beyond stipulated period.
So after Rera your money is always secured.
So based on this you should decide whether you will continue with the project or come out of this.
1) cancel booking and seek refund on account of stoppage of work
2) no guarantee that work would be completed on time
3) chances of obtaining quick refund are bleak
4) you can contact local lawyer for carrying out due diligence
5) you would be entitled to full refund as cancellation is due to builder stopping the work
You can go for refund of amount with interest by filing complaint before consumer court
1. Well, seeing the conduct of the Indian Bulls they are not going to refund the money anytime soon and even if they do it would be bereft of interest for the delay and the damages and compensation.
2. So I would suggest you to file a case before the consumer forum wherein you would get order for full refund with interest along with damages and compensation.
3. If you show the papers then we cna handle the dispute on your behalf.
For your information, the Supreme Court has admitted a PIL filed by a group of homebuyers that challenged the constitutional validity of WBHIRA. (Writ Petition(s)(Civil) No(s). 116/2019 FORUM FOR PEOPLES COLLECTIVE EFFORTS (FPCE) & ANR vs THE STATE OF WEST BENGAL & ANR). Currently, the government is examining whether two separate Acts on the subject of regulation of the real estate sector -- one enacted by the Centre and the other by a state — can coexist. Whatever be the fate of WBHIRA, only the name will change from WBHIRA to RERA in case the state decides to register projects under RERA. The buyer-builder agreements may also have to be revised but it does not seem that the state government is willing to relent anytime soon. Now coming to your query:-
1). The call is all yours to decide.
2). depends
3). already answered
4). read the penal provisions under WBHIRA
5). yes
The national consumer dispute redressal Commission has recently added that if any project is delayed by 1 year then the investor can ask refund of his investment as in your case the project is delayed by 14 months and it will be for the delay as the construction is supposed to comments from September 2019 and is expected to complete by 2021 it is very big delay and you are going to incurred huge amount and your EMI and rent together and I am not sure that you are going to get your apartment by 2021 in case you don't have any confidence on builder you have to approach rera and file your complaint so that the Builder will respond accordingly and at the same time you can file your complaint petition with the consumer dispute redressal Commission if your amount is more than 20 lacs otherwise you can file your complaint to the consumer forum to create pressure on the builders
my opinion is issue legal notice through an advocate and file complaint before district consumer forum and claim refund along with interest and compensation.
1. The said deficiency in service caused by the developer is very well known. It will be prudent on your poart to come out of the deal carefully and legally. A case in connection with a flat booked in Vedic village booked by India Bulls has recently been published in Newspaper in W.B..
2. At this very moment, your 30% payment is at risk and if you continue paying them your risk percentage will be much higher.
3. You shall have to file a complaint case before the W.B. State Consumer Dispute Redressal Commission against the developer/seller alleging deficiency in service and unfair business practice demanding refund of the amount bpaid by you with interest, damage and cost. Your agreement is required to be perused for finding fault on the part of the developer for filing the case.
4. Do not sign any new agreement if sent by the developer since it is a trick followed by unscrupulous developers by which the agrieved buyers are resented to file consumer cases on the ground that they have opted for new arrangements.
5. Further advice can be offered after perusing the documents/papers issued by the developers to the buyers.
6. It will be beneficial for all such agrieved buyers of India Bulls to jointly file the complaint case on the same cause.
Since there is no possibility of resumption of the stopped work and based on the past bitter experiences of workers and staff leaving the organisation and non-responsive attitude attitude of the developer you may better give a second thought of continuing the booking.
You have hardly paid 30% of the consideration amount as of now, if the builder demands 80% amount at the time resuming the construction work and after receiving the amount from most of the buyers and he again goes underground or stops the work you cannot take action against him for breach of trust or any other issue, instead you may have to fight for your 80% payment whereas you will be fighting to get back your 30% payment amount alone now.
HIRA is another legal forum which will take up the issue and pass orders based on the facts and legal concepts, which may be in your favor, but what about the execution part of the order?
By the time the aggrieved party is trying to execute the orders of HIRA the builder may approach higher forum and get a stay of the operation of the order.
The ball is in your court to decide about continuing the booking or to cancel the same and to protect your future interests in this regard.
Dear Client
My opinion is that you should go for refund and there is no guarantee in future that work will not stop again due to shortage of funds or any other reason and as a person of middle class we can't afford to invest in dead assets to waste out hard earned money.
You can file a case for refund as per your sale agreement and you will be entitled to get full refund with interest from builder.
And if the project is registered with RERA then your money will be absolutely safe and you are going to get full refund om default of builder.
