Legal Question in Landlord & Tenant Law in India

We had given our land to a local promoter to build a building 5 years ago with full power of attorney, but he is not abiding the agreement, and not giving the money according to the agreement, and saying that he has no money , he is bankrupt. but we know he has money.

According to the agreement we are the owner of 40% sanctioned area of completed building and 60% being his ownership.Out of 40% he gave only 800 sqft flat which is also incomplete and the rest of the money value he is not giving.

He did not make any drainage system, nor water reserver.

Further he built 4th floor illegally and sold that floor to people( agreement was G+2, but he couldn't even pass the plan of 3rd floor, he made one more floor on top of it).

So we just filed a case like some months ago at the consumer forum. But two times he was summoned for hearing he was not present. He is almost trying to say do whatever you want , i'm not giving money to you nor completing your building or your flat.

We also informed this matter to the municipal corporation but that time people were already living in all floor, including 4th floor, so things are under process.

He is married and lives at his father's house.

We are getting afraid he might show that he is actually bankrupt by transferring all his money to his wife's bank account or to someone else's bank account, to prove that he has no money , and when everything settles down lets say after 4-5 years, he takes back that money. Can he do that?

How powerful is consumer forum ? Our appointed advocate filed the case first at consumer forum instead of criminal case to the court, reason being the process of consumer forum is very fast and can be resolved within 6-8 months.

In this scenario what the promoter can do to escape from all the problem ? And what should we do?

How long will it take to resolve the issue , what will be punishment of him?

If the case go to High court , what will happen?


Asked on 9/29/13, 12:04 pm

1 Answer from Attorneys

Fca Prashant Chavan Expert Edge LLP

30.09.2013

Dear Sir / Madam,

It is better to take the builder into confidence and ensure that he completes the building in its entirety, rather than go to the consumer forum or the Court. Because if you are going to be fighting with the builder, you are going to be the ultimate loser. An incomplete building looks very shabby, and its aesthetic value becomes negligible. Try to get a bank to occupy the ground floor space, so that finance issues are automatically resolved. We will need to review the Agreement to advice and guide you further.

Regards,

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Answered on 9/30/13, 10:09 am


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