I booked an apartment during 2019. At the time of agreement and during the registration the developer dis not inform us of two pending litigation related to the projects. One of court case is going on since 1997 and on the back of that another was filed in 2018. We came to know in 2022 only when the plaintiff made most of the flat owners ( i am one of them) defendants by issuing court summons. We have not yet taken possession of the property, however 85% of the total payment has been done before the pending litigations came to light. Since then majority of the flat owners withheld any further payment. We also notified the developer of such stop payment through written notice. The developer is fighting both cases and we are getting updated from various sources, however it seems no conclusion will be reached in recent future. Also, the speed of the construction has slowed down as we have stopped payment. Please confirm that whether the developer can be prosecuted for fraud of suppressing impending litigation during the sale. Also what options are available for taking legal action against the developer for putting us in such a situation
You can cancel your booking and seek refund of money paid by you
2) it is responsibility of builder to make fair disclosure of pending litigation
3) if builder refuses to refund file complaint against builder before RERA and seek refund of money paid by you with interest
Dear client I am sorry to hear that full stop this is a case of fraudulent misrepresentation and suppression of fact. In this case you can approach the court under the RERA Act and Consumer Court! Since the residential projects launched before 2016 are not under the purview of RERA, homebuyers need to file a case at the Consumer Court. Steps to follow for registering complaints against builders1.1. Step 1: Issue a notice to the developer1.2. Step 2: Submit a complaint online1.3. Step 3: Submit the fees2. How to track the complaint filed with the consumer court?
It is your decision whether to continue or to to cancel the sale agreement and demand return of your booking amount with interest.
The fault of not getting a proper legal opinion before venturing into the purchase lies on your side too.
It is also not known that what was the case filed against the builder.
You confirm the details and take a considered action.
Pending litigation is not a suppression of material fact.
Even if you give a complaint with police, as the civil litigation is pending the police may not show any interest to entertain your complaint
You may have a case of fraud and misrepresentation against the developer for suppressing the pending litigation while selling the under construction flat. Fraud and misrepresentation are grounds for cancellation of contract and claiming damages under the Indian Contract Act, 1872. Fraud is defined as any act or omission that is intended to deceive or induce another person to enter into a contract. Misrepresentation is defined as any statement or assertion that is untrue or misleading, but not made with an intention to deceive.
Some of the elements of fraud and misrepresentation are:
In your case, you may be able to prove these elements by showing that:
Therefore, you may have a valid ground to cancel the contract and claim damages from the developer for fraud and misrepresentation.
Some of the legal options available for you are:
These are some of the legal options that you can consider for taking legal action against the developer for putting you in such a situation. However, before taking any legal step, you should also try to resolve your issues with the developer amicably through negotiation, mediation, or arbitration. You should also consult a lawyer or a legal expert for further guidance and assistance.
The agreement is induced by concealment of material fact which the builder has duty to disclose.
- Since , the developer has concealed the said facts from you at the time of entering into an agreement, then you can cancel the booking on this ground
- As per the RERA Act, if the builder is delaying in construction & delay in possession or concealing facts from the buyer , then the builder is bound to pay 10% interest on the value of the property.
- Hence, if you can cancel the agreement due to the faults of the builder , then you are liable to get full refund of paid amount with 10 percent interest.
- You can send him a legal notice for getting refund of the paid amount with interest , and not refund , then you can approach the RERA or Consumer court .
- Further, you can also lodge an FIR against the said builder for the offence of cheating and breach of trust .
Yes he can be prosecuted for fraud. You can also file complaint before consumer court in the said matter
Yes, you may file a criminal complaint against the developer for wilful suppression of material facts with an intent to cheat and defraud. You may lodge a written complaint with the State RERA authority too, besides agitating the issue before the consumer forum claiming compensation.
Dear Sir/Madam,
You have 02 options against developer, first is to file the criminal case of cheating, concealment of facts, wrongful gain/loss and secondly serve him a notice to return the amount with interest and if he is not returning, file the case in RERA/CIVIL Court against him.
This is not case of fraud but suppression of fact. If in agreement to sell, this is mention that property is dispute free than FIR can be lodge agasint builder.
To claim refund with interest, all approach RERA.
Greetings of the Day,
I have read your issue but find that there are some facts which need to be clarified. You can approach on either nine two one two one two four five eight five or seven zero four two eight three three six eight six for personal approach.
We Hope that a personal consultation would be fruitful to the issue and it would be better for you to talk to someone directly.
Best Regards
SPS Law Chambers
New Delhi.
