• Not getting Flat possession -flat previously sold to someone

We purchased an under construction 3bhk flat in Lanco hills, Hyderabad in august 2015. We made all scheduled payments timely. In October 2015, we got to know externally that our flat was previously sold to someone else who made few scheduled payments. According to lanco since  the party didn't make timely payments their deal was cancelled. According  to that party,they didn't make the payment as the construction was delayed. The money taken was not returned to the party as lanco has a rule that money will be returned only when the flat is registered by someone else.
 In October 2015, on knowing that the flat was being sold to someone else,the previous party filed a case against lanco and court asked to put a stay on selling the flat. The case has been going on since last one year. In may 2016, we got a mail from lanco that our flat was ready for  handover. However due to this ongoing case we can not take possession of our flat.
For no fault of ours we are stuck with a flat we cannot take possession of even after making 90% payment. Lanco hid important information from us that they had not returned money to someone taken against our flat.
Please advise how to proceed. Thanks.
Asked 1 year ago in Property Law from Hyderabad, Telangana
Religion: Hindu
1) issue legal notice to builder to refund money paid by you with interest 

2) since builder has suppressed material information of sale of flat builder would be guilty of unfair trade practice 

3) you can claim litigation costs and also compensation from builder 
Ajay Sethi
Advocate, Mumbai
44473 Answers
2585 Consultations

5.0 on 5.0

1 Well, since you are bona fide purchaser without notice of previous sale you are not going be lost.
2. Since the proeprty is litigated now and there is no surety it is going to end anytime soon, I would advise you to cancel the agreement.
3. Once the agreement is cancelled you are entitled to get refund of all money with intest.
4. If the builder refuses to do so , you can file consumer case for the same.
Devajyoti Barman
Advocate, Kolkata
12574 Answers
162 Consultations

5.0 on 5.0

There are some likewise cases are filed and pending in respect of flats in Lanco Hills, Hyderabad. It is the duty of Lanco Hills Hyderabad to settle the issue of earlier purchaser. If the earlier purchaser not made timely payment Lanco Hills people have to send the notice him and cancellation must be from both the side. It seems that the deal was cancelled one side i.e. from Lanco Hills and as such the earlier purchaser may approached the court.  The case may be specific performance or recovery of money and orders must be not alienate property to third parties.  Generally the court case will take time and it may be years. So better to insist the Lanco People to settle the issue with earlier agreement holder. In case if Lanco fails to settle the issue, you can initiate both civil and criminal action against them. in fact the Lanco has to refund the amount received from someone else against the flat for which who have made maximum payment. You can seek impleading of a party to case already filed against Lanco by said person before court and put forth the facts of your maximum payment etc.,  
Lakshmi Kanth
Advocate, Hyderabad
404 Answers
13 Consultations

4.7 on 5.0

You miserably failed to conduct due diligence to ensure that the title of the property you intend to buy is free and marketable. Now issue a lawyer's notice for cancellation of agreement to the builder and seek the refund of money with compensation for concealment of facts. If it refuses refund (which is most likely) you will have to sue it for recovery in the court through a lawsuit. A criminal prosecution for cheating and breach of trust should also be launched against it as material facts were suppressed from you before the agreement.
Ashish Davessar
Advocate, Jaipur
22966 Answers
631 Consultations

5.0 on 5.0

you should issue legal notice to lanco developers to handover possession of the flat after clearing the pending dispute at the earliest and to pay the interest for the period of delay till the possession is handed over. 
On failing to respond to your notice, you may drag the builder to consumer forum seeking redressal of your grievance agaisnt the builder including the reliefs of interest for the period of delay as well compensation for the mental agony and depression you experienced due to this. 
This is the only option available before you for an expeditious result. 
T Kalaiselvan
Advocate, Vellore
34587 Answers
373 Consultations

5.0 on 5.0

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