30% of total value paid but no registered sale agreement yet
Hello,
I have booked a flat in a pre launch project of a renowned builder in Mumbai.This was 2 years ago,in 2014.Till date,no construction of the said project has commenced and the representatives give vague answers of the project being delayed on account of delays of permissions/non clearances on the part of the Municipal corporation of that area.This is probably their bluff as I later discovered that the builder has not delivered possession of flats since 2010 of multiple projects,some projects on which work has not even started.
My query of distress is that I only have Receipt Vouchers of the payment I have made to the builder, i.e. a sum of 30% of the total value of flat.This payment was made 2 years ago,in 2014.There no terms or conditions on the said receipt vouchers,just acknowledgement of the payment made.
I do not possess any agreement of sale or any form of builder-buyer agreement.Though the builder had issued and signed an allotment letter to us stating clauses relating to instalment payments,it's interest rate,layout of building,cancellation of allotment etc.There is no mention of the stipulated time for completion of project in writing anywhere though the representative of the builder assured us orally of the delivery of possession by April 2017.However,as it is now obvious with no start of the construction in sight and vague answers,I have become wary of its completion and want to back out of the project by claiming refund.Also,a recent phone call made to the office had made it clear that the project will be indefinitely delayed,with new false assurances of completing the project by 2019.
The cancellation clause in the allotment letter I have,states cancellation charge of 4% shall be levied on the total consideration value.However,I want to claim the entire booking amount alongwith interest,as the Company has caused mental stress and I have lost time value of the money invested in such a vain project.I even asked for a formal agreement to be executed but the representative denied straightforwardly on the reasons that they themselves do not have certain permissions in place.Can they deny the agreement on this ground?
In such a scenario,what are my options? I am very wary of the entire situation as I do not possess any formal agreement.Is the letter of allotment and receipt vouchers enough for any kind of legal action ? Can I demand agreement of sale from the builder now?
Please guide me through this.Any form of clarity is highly appreciated.Thankyou.
Asked 7 years ago in Property Law
Religion: Hindu
Thankyou for your insights.
I had another query.Isn't it illegal/wrong for the builder to accept 30% of the total amount and not execute a sale agreement then? I have gone through MOFA wherein it states that an agreement of sale has to be duly registered and executed to the buyer after accepting 20% of total amount.
The builder has acquired 30% and has issued a mere allotment letter that doesn't even state anything relating to possession or delay on possession of the flat.
Isn't this a blatant contravention of the law? I want to know whether he has any authority to deny us the agreement,even though a good 2 years has passed since the payment? Can the builder deny handing over the agreement on the basis of non clearance of permissions?
Though I have made up my mind to totally back out of the project and claim refund...I just need the answers to the queries above.
Thankyou again..
Asked 7 years ago
