Booked flat in year but construction not yet started
I had booked a flat in the palm,a Mvl project at bhiwadi,Rajasthan, I had booked it in 2012, and I have given initial 20% before construction... On demand of third installment. I opted for bank loan, as per the builder guidance. I did all the paper work and payed rs 8000 for it in dec-2014. But yet construction has not started...and also approval for loan from bank has also lapsed.
Now from somewhere I heard that the company is going to bankrupt...on this I searched internet and found below news:
1. SEBI has issued a public notice in dec-2014 to prevent people to invest in Mvl limited. But it is not clear for which particular business owned by Mvl it is.
2. I have studied the profit and loss account of Mvl and it shows that company is not making good...turnover is half and profit decreased almost by 70%.
3. The Mvl had been raided by excise department in bhiwadi for not submitting service tax.a
Now I want to know on above grounds can I file a case...or what should I do to get my money back..
Asked 12 months ago in Property Law from Bhiwadi, Rajasthan
If you are suspicious about the project or the company itself, you may refer to the cancellation clause in the sale agreement and initiate to cancel the agreement quoting inordinate delay to start the project and you may also include that due to this inordinate delay the approval of bank loan also lapsed. You may cancel the agreement and seek return of money after due and legal deductions.If the builder is not responding you may drag him to consumer court for deficiency in service and compensation for the pecuniary loss as well as mental agony. You may also file a civil suit for recovery of money.
1) what were the terms and conditions of allotment ?
2) is there a clause that construction would be completed within period of 3 years?
3) does contract contain a cancellation clause?
4) you cannot cancel booking merely on newspaper reports .
5) if builder has failed to complete construction within stipulated period you can cancel contract and seek refund with interest
In this juncture, the agreement between you and the builder is important document for finding a solution .Check the cancellation clause, mode of payment and time for competition of work made mention in the agreement.
Your remedy is
- to approach the consumer forum for getting damages and
- civil suit for recovery of money from the builder if the builder is not refund the amount.
Before that you should send a legal notice and exercise your right to cancel the contract due to the deficiency in service and ask the compensation for the loss and mental agony . Your grounds for filing the case is getting from the scrutiny of the agreement.
Yes, you should immediately send letter asking for cancellation of the agreement.
If the developer does not agree for cancellation by way od refusnding your money then you can file case for the same in the consumer forum.
1. The public notice by SEBI to not to invest in MVL Ltd would cover all the residential and commercial projects started by it.
2. You can issue a lawyer's notice for cancellation of agreement to the company and seek the refund of the amount already paid. If the company refuses to refund (which is most likely) then you may file a lawsuit to recover the amount along with compensation.
file a case before consumer forum for performance of contract. builder will take plea of bankruptcy and file his actual in the project. if he pleads bankruptcy you may file claim before official liquidator.
1.I have not yet not received builder-buyer agreement (BBA) yet, so have not signed it and submitted it to the builder.
does this weakens my case?
2. Also in a copy of BBA with my friend below is one of the condition:
"And whereas the intending sub lessee(s) acknowledges that the developer/principal lessee has readily provided all information, clarification pertaining to development of the complex as required by the intending sub-lessee(s) and that intending sub-lesse has not relied upon and is/are not influenced by any architect’s plan, sale brochure, advertisement representations, warranties, statement or estimates of any nature whatsoever, whether written or oral made by the developer/lesse(s), thrincipal lessee, or independent selling agent/broker or otherwise including but not limited to any representations relating to description or physical condition of the project land or the artistic impression of the size or dimension of the apartment or the rooms therein or any other physical characteristic thereof, services to be provided to the sub-lessee(s), the estimated facilities/amenities to be made to the intended sub-lessee(s), or any other data except as specifically represented in the agreement"
Please tell me if above condition have anything to do with the SEBI notice as below:
Sebi asked seven directors of MVL to "wind up the existing Collective Investment Schemes and refund the money collected by the said company under the schemes with returns which are due to its investors as per the terms of offer within a period of three months from the date of this order".
as one of the basic term and condition includes : "the company shall pay Rs. 1.5 per sq. ft per month as the charges for the period of delay in offering the possession of the said apartment as stipulated in builder buyer agreement"
3. how it is advisable plea in "LOK ADALAT" on basis of fraud
Asked 12 months ago
1) it does not weaken your case as you have not received any BBA from the builder .
2) builder is bound to provide flat as per the plans sanctioned by muncipal corporation . the representations made in advertisements , brochures released are binding upon the builder . even there is a clause in contract that builder shall only provide amenities mentioned in the agreement the flat purchaser can drag builder to court to honour commitments made in its brochures ,
3) SBI directive pertains to an collective investment scheme whereas your investment is in flat Mvl project at bhiwadi,Rajasthan,
4) the condition cited by you mandates that builder shall pay penalty for delayed delivery of possession of flats to the purchasers
You have right to claim compensation if delay is occurred to the construction and delivery of possession of flats to the purchaser.
1.I have not yet not received builder-buyer agreement (BBA) yet, so have not signed it and submitted it to the builder, does this weakens my case?
No, it will not
Builder buyer agreement is the most important document when you buy a property. Unfortunately it is not given the due attention it deserves.This agreement contains all terms and conditions of the sale and covers remedies of defaults by either party. A balanced Builder Buyer Agreement should ensure interests of both parties are protected.
The challenge is that the Builder has experience of many years in drafting these agreements and he is also supported by legal teams within his organization, where as the buyer almost always lacks these. Even if the buyer wants to, he either due to lack of time or lack of guidance does not review the agreement in detail before signing. The result is a skewed agreement in favour of Builder.
Most critical points one should not miss out on when reviewing a Builder Buyer Agreement :
Project time line.
Inclusion of Penalty clause in case of delayed offer of possession.
Quantum of this penalty
Force majure clause
Total amount to be paid by the buyer including all charges (Refer the total cost aricle)
Penalty & Interest on delayed payment
Clauses related to change of building plans & area and its impact on price
Remedies of failure on the part of developer to complete the project – Refund of payments with interest
Transfer process and transfer charges.
Remember it is obligatory on the part of developer and also in your interest to sign this agreement when making the first payment.
SEBI has made clear points in this regard which will further help you out.
3. how it is advisable plea in "LOK ADALAT" on basis of fraud?
Why lok adalat, he can be drawn to consumer court itself.
1. That you have not signed the builder-buyer agreement in favour of the builder does not either weaken or strengthen your case, albeit it was unwise to pay any amount unless the agreement was signed.
2. The clause extracted by you does not have a nexus with SEBI notice. The notice by SEBI is substantive and applies with full vigour to your case.
3. Lok Adalat is not the forum which you can approach for the redress of your grievance. You ought to move the civil court to seek refund and compensation.