• Delay in apartment project completion

Place: Bangalore, Electronics City.
We got our individual flats registered in our name and paid full sale amount to builder. Builder has completed the internal work of all the flats. But he is delaying the external work like painting, plastering, lifts, corridor, staircase, clubhouse, electricity meters, parking, gensets, internal roads etc. In our sale agreement, he has committed the possession date for only the individual flats but no commitment on the entire project completion. Project started in 2007 and most of the sale deed has individual flat possession date as latest by mid of 2012. Even the approved plan (BMRDA) has crossed its expiry date (5 years). Builder later obtained the approval for additional floor construction and erected the structure above our flats. But due to internal dispute within builder partners, the project is stalled. No construction is happening since last 1.5 year. We are having a pathetic stay in this unfinished apartment. Even the revised plan also crossed its expire date(2 year).

So we, a group of owners formed the association and decided to fight legally against the builder.
1. Which forum is appropriate for us to approach and what should be the nature our case (criminal/civil/etc)
2. Can, we as an association fight for it? (only 65% owners are present in the association)
3. Since he did not mention about the overall project completion time line in the sale agreement, can he go on for ever in completion the entire project.
4. Since he stalled the construction due to the internal dispute, what is our best way forward in getting the project completed?
5. He was providing the maintanance service(water, housekeeping, security, etc,) till now by collecting the charges from owners. But since the project is stalled, many owners refused to pay him the maintenance charges as their lumps money (from pending work) is with him. Now he threatened us that he will stop the maintenance service and we should take care of it. Also, he is acknowledging that construction is stopped and builder won't pay any money to maintain this project. What is our way ahead on this?
 --As per the sale deed he is supposed to maintain the project by collecting proportionate expense from owners till he form the owners association as per Karnataka apartment ownership act 1972 which will give the power to association to run the maintenance. But he didn't form it and we formed owners association as per Karnataka society act 1960 for the purpose of welfare of the members-- So, can he wash his hands from this responsibility?

Thanking you in Advance for your valuable input.
Asked 7 years ago in Property Law
Religion: Christian

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6 Answers

1. Consumer forum is most effective forum to get the necessary relief.

2.Yes you can. Even individually also the willing flat owners can file such case.

3. Yes you can. It is the fault of the developer.

4.The consumer forum will pass necessary decision on that regard.

5. He can stop maintenance service. Seek INJUNCTION FROM CONSUMER FORUM IN HTAT REGARD.

6. Consult a lawyer and do the needful on the above lines.

Feel free to contact for further help.

Devajyoti Barman
Advocate, Kolkata
22779 Answers
484 Consultations

5.0 on 5.0

1) file complaint before consumer forum against the builder for deficiency in service and seek order to direct completion of painting, plastering, lifts, corridor, staircase, clubhouse, electricity meters, parking, gensets, internal roads etc

2) since builder is liable to maintain the building till he forms association under karnataka apartment ownership act he would continue to be liable to maintain the complex

3) builder has to hand over the maintenance to association after completing the pending works

4) builder has to complete project within reasonable period of time . he cannot go on delaying completion for years at an end

Ajay Sethi
Advocate, Mumbai
94522 Answers
7485 Consultations

5.0 on 5.0

Hello,

The appropriate forum for your cause of action is consumer forum and for that all the owners who have invested in the property needs to file an individual case and it cannot be filed as an association. Also as a rule you need to serve a legal notice upon them before initiating any action. Apex court of the country has also ruled in favor of the consumer in such cases.

Thanks and regards

Anilesh Tewari
Advocate, New Delhi
18077 Answers
377 Consultations

5.0 on 5.0

1. The appropriate forum is consumer forum or civil court for the redressal of grievance. You can sue him in this forum for delivery of possession with compensation and all the promised amenities.

2. The association can file a class action lawsuit or the individual owners can move individually.

3. It is basic law that if no time frame has been mentioned in the agreement for the completion of the project then it has to be completed and possession delivered within a reasonable time.

4. The association can itself maintain the project if he backs out.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

1. File a complaint case before the local District Consumer Dispute Redressal Forum against the builder/seller alleging deficiency in service and unfair business practice claiming completion of the project within a fixed time period and payment of penalty on daily basis with interest, damage and cost.

2. You can file the case individually or collectively forming an association.

3. Te entire project should be completed within a reasonable time and the reasonable time will be fixed by the court.

4. You can not solve their internal dispute. The project can be completed only with court order.

5. Agitate on all these problems before the onsumer forum with evidence to settle the problem with court intervention.

Krishna Kishore Ganguly
Advocate, Kolkata
27191 Answers
726 Consultations

5.0 on 5.0

1. Consumer forum for the grievances against the builder.

2. Yes as an association you can put up a better fight and this will be recognised.

3. The completion has to be taken up by the builder alone.

4. Approach court with a suit for specific reliefs.

5. He cannot stop the amenities to be provided for sustenance.

As an association you can step into his shoes and start maintaining the disrupted maintenance tasks.

T Kalaiselvan
Advocate, Vellore
84711 Answers
2172 Consultations

5.0 on 5.0

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