Builder acquiring majority units in a Delhi builder-floor: legal options for dissenting owners (dos) to safeguard rights against
We are facing a legal situation involving a 30+ year-old builder-floor property in Delhi comprising 8 independent flats. The property lacks a sanctioned building plan, Occupation Certificate (OC), and Completion Certificate (CC), though each flat is registered independently in the names of different owners.
Recently, a builder/developer has entered the picture and started acquiring units. As of now:
5 out of 8 flats have been acquired by the builder or his associates (over 62.5% ownership).
1 more Dissenting Owner (DO) is currently in talks and may sell soon.
Only 2 DOs are holding out, refusing the current offer citing extremely low compensation, lack of transparency, and undervaluation.
The builder is aggressively pursuing acquisition with the intent of demolishing and redeveloping the property. The remaining DOs are concerned that if the builder reaches 6 or more units, he might move to:
File for partition in court.
Request an auction of the entire property.
Try to undervalue the property to secure it cheaply in a court-led auction process.
Coerce or harass remaining DOs into surrendering rights through pressure tactics.
We need expert legal input on the following:
1. Builder’s Possible Legal Routes (As being threatened by him):
What legal remedies can the builder now invoke to force acquisition or possession of the remaining units?
Can he approach the court for a partition and force a sale through public or court-supervised auction?
Can the builder request the court to appoint a valuer and push for undervaluation or collude to get a lower reserve price?
2. Risks of Valuation Manipulation:
How common or legally permissible is undervaluation or manipulation of base prices in partition auction cases?
Are there known Delhi cases where builders acquired property through partition suits and undervalued auctions?
3. Legal Remedies & Strategies for DOs:
What immediate legal steps can DOs take to prevent undervaluation or coercion? (e.g., caveats, RTIs, legal notices, objections)
How can DOs demand High Court oversight or fair valuation mechanisms?
What is the realistic probability of:
Securing a stay on any unfair auction or partition sale?
Getting the auction supervised by the High Court?
Challenging and halting redevelopment until fair terms are negotiated?
4. Long-term Outcomes and Legal Cost:
What are the long-term outcomes DOs can realistically expect if they do not consent to current offers?
What are the approximate timelines and legal expenses from lower court to High Court or Supreme Court if the matter escalates?
Is there a practical way DOs can secure higher compensation or better terms if they resist?
Kindly advise on the best course of action and share any precedents or practical examples that may help us.
Asked 9 months ago in Property Law
Religion: Hindu
Thank you for all the above responses!
We would be grateful for your further insight on a few critical follow-up concerns. Since our builder-floor property has no OC, CC, or sanctioned plan, the builder is now threatening to get the building sealed or demolished by authorities. In such a scenario, we’d like to understand whether MCD can actually carry out such sealing/demolition, and if so, what happens to the land ownership—do existing flat owners retain their rights, and can they jointly rebuild the property themselves without the builder’s involvement, or does it open the door for forced redevelopment? The builder also claims that after acquiring 6 flats, he can start redevelopment on his portion, which will make it difficult for dissenting owners to live peacefully. Is he legally allowed to carry out redevelopment within his flats in a still-standing, co-owned building, and if so, what is the extent of renovation/redevelopment that is legally permissible? Understanding this will help us take a firm stand against coercion. Are there any legal or injunction mechanisms that can prevent such activity until mutual terms are agreed upon? Is this a known pressure tactic, and what remedies exist—either through the court or police—to counter it? From your previous replies, we’ve understood that since flats are individually registered and independently owned, no partition or forced auction of the entire property is legally tenable just because the builder holds a majority. Please confirm if this understanding is correct. Lastly, we would like your views on whether our current strategy—holding our ground, rejecting undervalued offers, and being prepared to take legal action against any unlawful tactics—is indeed the most prudent and effective course of action. If the worst happens and the building is demolished or sealed, what happens in such a situation then?
Asked 8 months ago