• Termination of development agreement

I have a piece of land for which i entered into a development agreement with a builder. now after 2 years also he is not starting the project citing finance issue. plan is also not yet ready and sanctioned. now he is not returning the development agreement original and asking 8 lakhs to return the document citing cost of construction of approach road. how can i legally get the development agreement terminated without having to pay to him anything. land is Jharkhand state. agreement has termination clause from 3 years from date of plan sanction. but the plan is not yet sanctioned.
Asked 7 months ago in Property Law from Bokaro Steel City, Jharkhand
Religion: Hindu
1) it is necessary to peruse development agreement signed with builder 

2) if the agreement is registered you can obtain certified copy from sub registrar office 

3) if it is only notarised issue legal notice to builder to obtain copy of the agreement 

4) you can terminate development agreement if builder has not carried out any work for 2 years 

Ajay Sethi
Advocate, Mumbai
23151 Answers
1216 Consultations
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1) there must be termination clause in the development agreement 

2) you can invoke the clause and terminate agreement if builder has failed to carry out any construction work for period of 2 years 

3) for issue of legal notice contact a local lawyer 
Ajay Sethi
Advocate, Mumbai
23151 Answers
1216 Consultations
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1. Issue a lawyer's notice to cancel the agreement due to the default of the builder. You are not bound to pay him a penny if he has dishonoured the agreement. 

2. The development agreement does not require a mandatory registration. 

3. Get the notice drafted and sent by a lawyer as you are not a trained legal mind.
Ashish Davessar
Advocate, Jaipur
18061 Answers
447 Consultations
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I have a piece of land for which i entered into a development agreement with a builder. now after 2 years also he is not starting the project citing finance issue. plan is also not yet ready and sanctioned. now he is not returning the development agreement original and asking 8 lakhs to return the document citing cost of construction of approach road. how can i legally get the development agreement terminated without having to pay to him anything. land is Jharkhand state. agreement has termination clause from 3 years from date of plan sanction. but the plan is not yet sanctioned.

If the developer is not returning the agreement document and if the same is a registered document, you may obtain  a certified copy of the registration document.
See the terms and conditions of the agreement, if you find that there is a termination clause attached to the conditions, you may invoke the clause.
You can issue a legal notice to the developer seeking return of the document if it is just a notarised communicating the termination of the contract owing to his delay to start the project despite more than two years from the date of agreement.
T Kalaiselvan
Advocate, Vellore
13948 Answers
127 Consultations
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The development agreement is not registered. it is only notarised. Also i do have a photocopy of the agreement but the original is with the builder.

The unregistered agreement is not maintainable in the court of law.
With the copy of the said agreement in your possession, you may proceed by serving a notice terminating the contract invoking the termination clause.







Kindly guide the steps on how can i cancel this development agreement with this builder. If any legal notice to be issued kindly tel me in brief on the content of the notice.

For issuing legal notice you can engage the services of an advocate  by producing the relevant papers before him and briefing him the situation as well the relief sought.
T Kalaiselvan
Advocate, Vellore
13948 Answers
127 Consultations
5.0 on 5.0
1. Was the said Development Agreement Registered?

2. Was there any clause in the Agreement specifying he period within which the Developer shall have t start and complete the development failing which he greement will automatically be treated as terminated?

3. If  yes, then you can invoke the said clause  and send him a letter informing him that the said agreement stands cancelled,

4. If no, then you can simply send him a letter stating that the development agreement will be treated as cancelled if he fails to start construction work with in one month from the date of receipt of the letter,

5. He can do nothing legally for your erminating the unregistered agreement after wo ears of its execution for not staring the construction work.
 

Krishna Kishore Ganguly
Advocate, Kolkata
12077 Answers
228 Consultations
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1. It hardly matters if you do not have the original agreement with you,

2. He is trying to befool you by claiming  Rs.8 Lakhs for returning the Original agreement since it has no value as such as no amount has exchanged hands and no expenses has been incurred based on the said agreement after execution of the agreement,

3. Send him a letter as suggested in my earlier post giving him just one months time to start construction and also finish it with in 1 year or treat the agreement as cancelled,

4. It would have been more appropriate to know about the time specified in the agreement for completion of the project, to advise properly. You can sent the termination letter for non compliance of the clauses of he Agreement.
Krishna Kishore Ganguly
Advocate, Kolkata
12077 Answers
228 Consultations
5.0 on 5.0

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