It is suggested for you to file a suit along with the other society members. The Receipt of the allotment letters from the builder to the sellers can be used as a proof. Since you have been subjected to such fraud through concealment of facts, you can a file a suit under section 415 of IPC. It states that-
Cheating.—Whoever, by deceiving any person, fraudulently or dishonestly induces the person so deceived to deliver any property to any person, or to consent that any person shall retain any property, or intentionally induces the person so deceived to do or omit to do anything which he would not do or omit if he were not so deceived, and which act or omission causes or is likely to cause damage or harm to that person in body, mind, reputation or property, is said to “cheat”. Explanation.—A dishonest concealment of facts is a deception within the meaning of this section.
Earnest money is a deposit made to a seller that represents a buyer's good faith to buy a home. The money gives the buyer extra time to get financing and conduct the title search, property appraisal, and inspections before closing.
Earnest money paid by a purchaser of an immovable property can be forfeited by the seller if the former fails to pay the remaining sum, the Supreme Court has held.
A bench of justices K S Radhakrishnan and Dipak Misra said the earnest money is given to bind the contract and the seller is entitled to forfeit it if the sale of an immovable property falls through due to the fault of the purchaser.
"Earnest money is paid or given at the time when the contract is entered into and as a pledge for its due performance by the depositor and it is to be forfeited in case of non-performance by the depositor," the bench said.
The bench gave the ruling setting aside a Delhi High Court order which had held that the seller is entitled to forfeit only a nominal amount and not the entire sum.
It is also the law that part payment of purchase price cannot be forfeited unless it is a guarantee for the due performance of the contract. In other words, if the payment is made only towards part payment of consideration and not intended as earnest money, then the forfeiture clause will not apply," the bench said.
In Contract law, it is generally used to indicate that, with former consensus between the parties, the amount which is clearly indicated in terms of the contract to be given as earnest is not given back to the purchaser who has given his money, if due to his fault or failure, the contract is broken in nearby future.
In India, the proceedings of arbitration are governed by the Arbitration and Conciliation Act. As per proposed Section 42A, an obligation of confidentiality shall be imposed on the parties to the Arbitration Agreement, the arbitrator and the Arbitral Institution. It is evident from the stipulations of this provision that this is a non-derogable provision with only one exception. Under this exception, the award may be disclosed for the purpose of enforcement or setting aside proceedings.
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