• Redevelopment of co-op Housing society- Stamp duty for development agreement Mumbai western suburb

Builder/developer and Society is asking me to pay stamp duty and registration charges for (RERA project)member's Permanent alternate accommodation agreement though development agreement states that builder will pay for it. Builder has paid for all other members.
I am senior citizen, 70+ yrs old, living abroad and has high risk for Covid. Society asked members to attend signing of development agreement at one week notice (put on Whatsapp) during x-mas 2021. At that time there was Omicron- Corona wave so I was house bound due to high risk to my health and also flights booking were unavailable as there were many flight cancellation. I informed society and developer (by email) about these circumstances. I could not arrange POA as I was house bound due to high risk to my health and time was very short to arrange for it.
Do I need to pay stamp duty and registration charges to builder as penalty?
Asked 1 year ago in Property Law
Religion: Hindu

2 answers received in 1 hour.

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12 Answers

As per development agreement builder has to pay stamp duty and registration charges 

 

2) you don’t have to pay stamp duty and other charges as penalty 

Ajay Sethi
Advocate, Mumbai
94695 Answers
7528 Consultations

5.0 on 5.0

 

You are not entitled for commercial premises as in BMC records property is shown as residential 

 

2) property taxes have been paid by you as residential 

Ajay Sethi
Advocate, Mumbai
94695 Answers
7528 Consultations

5.0 on 5.0

Apply for and obtain copy of sanctioned plans from municipal corporation 

 

2) send a mail to society as to on what basis you have been given flat at rear portion of building 

 

3) draw attention of society to development agreement wherein stamp duty , registration charges was to be paid by builder for individual agreements 

Ajay Sethi
Advocate, Mumbai
94695 Answers
7528 Consultations

5.0 on 5.0

The registration charges and stamp duty payable as applicable is required to be paid by all the members if the development agreement states so.

You remained silent after having expressed your inability to attend in person owing to the reasons stated therein but that would not entitle you to be privileged or exempting the payment as per procedures of law. 

If the demand is made or not,  you may enquire about it the dues and try to comply with the requirements accordingly. 

 

T Kalaiselvan
Advocate, Vellore
84896 Answers
2191 Consultations

5.0 on 5.0

If the flat was registered as commercial instead of residential,  then the maintenance charges applicable for commercial establishment is required to be paid. 

If you are sure that it is not registered as commercial and only as a residential flat then nothing prevented you from objecting to higher maintenance charges so far. 

At least now you raise the objection and stop paying the maintenance charges charged at commercial rates. 

You can operate all these things from remote too, but engage an authorized person or a power agent to represent you on all such occasions before all the concerned authorities/forums.

T Kalaiselvan
Advocate, Vellore
84896 Answers
2191 Consultations

5.0 on 5.0

You can strongly object to the unjustified allotment and if necessary obtain a stay order as well as to get proper allotment of flat as per your entitlement by filing a suit for mandatory injunction and specific relief. 

You can fight your case through a power of attorney agent also if you are not able to appear in person for this purpose. 

Before that you ascertain the facts in black and white through the proper authority in writing and then issue a legal notice expressing your grievances and the demands with justification do that a proper and legal platform is created to escalate the matter through appropriate legal forum for relief and remedy. 

T Kalaiselvan
Advocate, Vellore
84896 Answers
2191 Consultations

5.0 on 5.0

How were flats allotted 

 

was it by drawing of lots as to who gets which flats 

 

there must be basis for allotment of flats 

 

if all flat owners are paying stamp duty for the flats you must also do the same 

Ajay Sethi
Advocate, Mumbai
94695 Answers
7528 Consultations

5.0 on 5.0

The stamp duty for the development agreement is generally paid by the developers and they are bound to pay that. 

The developer cannot demand that from you.

The allotment of flats is not at the whims of the developer, he is trying to cheat you because you are not physically available in india hence taking advantage of the absence he is playing such dirty tricks.

Did you happen to get the copy of the agreement in which such recitals were made?

You had been possessing a flat in the front side considering your flat as a commercial flat because the society had been charging the maintenance amount at the rates applicable for the commercial flats and you are in possession of the payment receipts for that to prove that this flat was considered as a commercial flat hence you are entitled to a flat in the front side and not at the back side.

You can file a suit for permanent injunction agaisnt the developer to restrain him from indulging in such activities which are detrimental to your rights and interests in the proeprty which includes the allotment of your flat at the rear side of the complex.

You have to get into legal action instead of sitting at a remote place and sending him an email communication whenever you find time, without taking the issue seriously.

Therefore if you are really serious about getting remedy you may have to act at once on it by consulting a local lawyer and proceed as suggested. 

T Kalaiselvan
Advocate, Vellore
84896 Answers
2191 Consultations

5.0 on 5.0

You should have asked from society chairman or secretary that why they're charging you maintenance according to commercial charges instead of residential. You could have asked them to produce a copy of by-laws passed in any AGM or SGM.

Need to check your redevelopment agreement between you and builder, society and builder. So we can come to conclusion.

Ganesh Kadam
Advocate, Pune
12928 Answers
255 Consultations

4.9 on 5.0

Under zoning rules, a doctor’s clinic, lawyer’s office or a CA’s office is not a commercial activity. Society cannot charge maintenance at commercial rate. When the agreement stipulates that, stamp duty has to paid by the builder, you need not pay any stamp duty. Demand for payment of stamp duty is not enforceable against you.

Ravi Shinde
Advocate, Hyderabad
4041 Answers
42 Consultations

5.0 on 5.0

Dear client I can advise you to review the Development Agreement thoroughly, as it may state if there are any penalties for not following the agreement. If you believe that the penalty is not justifiable, you may consider seeking legal advice. In light of your circumstances, it may be possible to negotiate with the builder or society to reach a mutually acceptable solution

Anik Miu
Advocate, Bangalore
8854 Answers
110 Consultations

4.7 on 5.0

Builder will pay the same else you can approach to consumer court against him

Prashant Nayak
Advocate, Mumbai
31930 Answers
179 Consultations

4.1 on 5.0

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