• Registration of unfinished flat which is not under RERA

I signed an Agreement of Sale in 2017 where the builder promised to complete and deliver in 2019 (which includes 9 months of grace period) 
Unfortunately, i believed his words that he will surely deliver the project on time and also mentioning of Rs.3 Per sqft as compensation for delay is just as per standard template while he can charge interest at 9% in case i delay any payments.
Till Dec 2021, he could just finish the base structure and no further progress and still saying that he will deliver in one more year.
Now, he is trying to threaten me saying that my payments are delayed and it attracts penalty + GST on it and forcing me to pay that. He also changed his word that he will use internal fittings from reputed brands like Roca, Jaquer, Kajaria and he seems to be using fittings with his own logo on them.
When i asked for justification, the employees from this organization suggested to go for registration as such discussions will never end and if i complete the registration process it will put an end to their demand of penalties.
After paying 96% of total cost of flat, I am being harrassed by the builder which is very disturbing in my personal life too with no guarantee that I will get my flat in this lifetime.
Please suggest, if 
I should go for registration of the property and enroll myself as the legal owner of an unfinished flat or 
Wait till it is delivered and ready for possession or 
File a case to demand charges for his delay

I live outside India which is another problem to fight the case and the property is based out of Hyderabad, Telangana and most importantly this property is not under RERA as this builder started this project in 2008 but failed to finish it but is able to continue selling flats to goats like me.
Asked 4 years ago in Property Law
Religion: Hindu

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11 Answers

You should register sale deed in your name 

 

2) it confers clear and marketable title to property 

 

3) if builder fails to complete project on time and deliver flat to you then file complaint against builder before RERA or consumer forum and seek orders to pay you compensation for delay in delivery of flat 

 

4) registration before RERA is mandatory . You can complain against builder with RERA if he is selling flats without being registered with RERA 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

Even if project is not registered under Real Estate (Regulation and Development) Act, 2016, you have effective remedy under general law. A clear case of cheating under Section 420 is made out against builder for collecting money and providing the promised property. File the case in the Court of Magistrate as police will hesitate to take complaint. Court will order police to register FIR,  investigate, produce accused in court and file charge sheet. After trial Court will punish the accused. Punishment for cheating is jail up to seven  years. Once summons is served on him he will come for settlement, the offence of cheating is compoundable, that is it can be compromised between complaint and accused. You can collect your money with interest and compromise the offence. There is no sense in going for registrar as his intentions does not seem good. Anyone of your rlative who knows the facts can file criminal complaint for you on your behalf.  If the agreement  is executed in Hyderabad, complaint can be filed in Hyderabad Court. Simultaneous you can civil suit for recovery of money with interest and costs.For filing suit you need not come to India, Draft a GPA in favor of you friend/relative on 100 rupees bond paper giving him power to file suit on your behalf. Take that GPA to Indian Consulate/High Commissioner  and get it attested by official there. The GPA has to be in specific  format.  Send it to the person named in India. He can do everything appointment of Advocate, filing case, defending case etc. for you.

Ravi Shinde
Advocate, Hyderabad
5125 Answers
42 Consultations

Hi 

If the money paid by you exceeds Rs1Crore, you can approach national company law tribunal and appointment of Resolution professional who will then dispose of the current management and take control of the company.

If the money paid by you is less than Rs1Crore, you should issue notice and file a case before state consumer commission at Hyderabad and claim for damages, cancellation of penalties levied by the builder, handing over of possession of property and order for registration. 

Also, in your case, RERA (despite property not registered with RERA)will still be applicable, but unfortunately government of telangana has not appointed a judicial member to head RERA. 

Hope this information is useful. 

Rajgopalan Sripathi
Advocate, Hyderabad
2173 Answers
394 Consultations

Whether this project is under RERA or not, you still can give a complaint to RERA about the atrocious activities of the builder  which you have mentioned in your post.

If the builder is trying to threaten you or force you to get the property registered without completing the constructions, you can refuse to do so and issue him a legal notice communicating your decision to cancel the booking quoiting the inordinate delay in completing the constructions besides using all sub standard products in the interior designing.

You can claim refund of booking amount with interest from the date of paying this amount. 

Subsequently you can drag the builder to the consumer forum too seeking refund of your amount with interest and for compensation for mental harassment as well as for deficiency in service. 

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

Approach consumer court for deficiency of service in said matter

Prashant Nayak
Advocate, Mumbai
34514 Answers
249 Consultations

- As per the RERA Act, if the builder is delaying in construction & delay in possession, then the builder will have to pay 10% interest on the value of the property for delayed possession of flats.

- Hence, if builder fails to delivers the possession of the flat to you on time, then you can cancel the agreement due to his fault and you are liable to get full refund of paid amount with 10 percent interest. 

- Further, if you get the possession of the said flat lately, then also you can claim 10% compensation from the builder. 

- It is not advisable to registered the sale deed in your favour for an unfinished property and without getting the OC and other necessary documents. 

Mohammed Shahzad
Advocate, Delhi
15814 Answers
242 Consultations

You can complain to RERA if builder has not registered the project 

 

you should get flat registration done in your name 

 

you can claim compensation for delay in delivery of possession 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

If the flat is registered on your name then it can be deemed that possession has been handed over to you 

If you want to claim compensation for the period of delay then it is not advisable to get the property registered on your name now even before the construction is completed. 

 

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

You may claim compensation for the delay even after registration of the property in your name.

Swaminathan Neelakantan
Advocate, Coimbatore
3070 Answers
20 Consultations

The limitation is 2 years from cause of action. If it's recurring cause of action in your matter then you can wait

Prashant Nayak
Advocate, Mumbai
34514 Answers
249 Consultations

- Since, the builder failed to deliver the flat within the agreed period , then you can claim damages after filing a complaint before the consumer forum. 

- Yes, even after registering the flat , you can claim compensation from the builder. 

- However, if you wanted to claim compensation and cancel the booking then you should not wait for the registration of the flat in your name. 

Mohammed Shahzad
Advocate, Delhi
15814 Answers
242 Consultations

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