My father-in-law and builder signed an unregistered development agreement in 2006 for 40-60% ratio. The builder did not handed over the flats even after 3 years from the date of agreement. Then he signed another agreement stating that he is going to increase the share to the owner as he delayed the project. Even still he failed to complete the development of the property and was absconding. My father-in-law tried to reach him several times over phone and by visiting residence. He was keep on changing his residence to hide from us. Finally we got vexed with him and invest our own money to complete the development of our share of flats. And we also contributed towards the development of the common areas along with other owners. Now the flats are in good shape after we invest our own money. The builder sold his share to others. He completed only 60% of the work. We got to know that he sold the flat to someone which he agreed to give it to us as an additional share because of the delay in development. With all these consequences my father-in-law passed away with heart attack. He felt really bad about himself that he could not able to hand over these flats to his daughters for their happiness. Now we are asking the builder to handover us the flat that he sold to other party and we are asking him to pay the money that we invested for completing the flats. He is so rude and said we can not do anything because it is UNREGISTED DEVELOPMENT AGREEMENT and we can't do anything to him. Please give us your suggestions how to punish this guy and get our flat and money back.
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File suit against builder and seek orders to set aside sale of flat by builder to third party
2) to pay money invested by you in completion of flats
3) if there is arbitration clause in your agreement invoke the said clause
4) file criminal case against builder for cheating , criminal breach of trust under section 406 and 420 of IPC
Hi, you have to file a civil suit for declaration that you are the owner of the so and so flats and also for cancellation of the flats to third parties.
Your father in law is a victim of fraud by the builder. A clear case of cheating is made out against him. File a private complaint against in the court of Magistrate under Section 420 and also file suit for recovery of money through his daughter as legal heir. You are still in limitation as the cause is action is continues. Only them he will come to terms with you.
Well, cancel the agreement and make a new development agreement with a other developer.
If this is not feasible then file case before the consumer forum seeking refund and damages.
You can file a suit for cancellation of the sale deed and for permanent injunction against the builder.
You and other legal heirs have to jointly file the suit.
Since it is an unregistered agreement the builder cannot sell the property by himself and the same is not legally valid.
- A Collaboration Agreement is an arrangement between an owner of the land and a builder where the land owner contributes the land and the developer undertakes the responsibility of obtaining approvals, property development, launching and marketing the project with the help of his financial resources.
- As per law, the builder is not the transferee or buyer of the flats as per the Transfer of Property Act, 1882 under the Collaboration Agreement.
- The ownership lies with the owner of the land, but the landowner grants the builder along with development rights, a license to enter the land for the purpose of development.
- The license/authority to enter the land is typically given by way of a Power of attorney issued in favor of the Builder, and this General power of attorney should be registered with the Registrar in order to be legally binding on both parties.
- On completion of the construction by the builder, the occupancy right is granted by the competent authority to the owner, and the owner will himself execute the sale deed in favour of the buyers.
- Further, in case of breach of the terms of the Collaboration agreement, the land owner will have the right to revoke the power of attorney.
- Hence, the said builder is bond with that agreement , even unregistered ,
- The legal heir can file a Declaration suit for cancelling the sale deed done by the builder on the ground of unregistered agreement and without taking consent of your father in law.
