Real Estate Legal Matters and Queries

[SKD]

like many others, I also bought a house in Greater Faridabad close to 4.5 years ago, At that time, I was promised to give Possession (within 2 years max)...It was difficult to speculate at that time how Govt would increase EDC/IDC without doing any development work and Builder would needs indefinite time to complete construction work … in the meantime customer needs bare the lose.

Now even after 4.5 years it's nowhere close to finishing half the construction work....with the same amount of money invested in GF, I would find a ready to Occupy house in a much developed area today and I don't need to continue paying EMI's as well as rent.

I know for sure that this process won't be as simple as it might appears but as per the agreement...customer has the right to withdraw anytime due to various reasons and builders is suppose to return the money to the investor that he has invested till date ….My question is if builder refused to accept my withdrawal application and does not return money..Do I have a strong case?

[SKD]

Any inputs would be greatly appreciated

[Adarsh Aggarwal]

like many others, I also bought a house in Greater Faridabad close to 4.5 years ago, At that time, I was promised to give Possession (within 2 years max)...It was difficult to speculate at that time how Govt would increase EDC/IDC without doing any development work and Builder would needs indefinite time to complete construction work … in the meantime customer needs bare the lose.

Now even after 4.5 years it's nowhere close to finishing half the construction work....with the same amount of money invested in GF, I would find a ready to Occupy house in a much developed area today and I don't need to continue paying EMI's as well as rent.

I know for sure that this process won't be as simple as it might appears but as per the agreement...customer has the right to withdraw anytime due to various reasons and builders is suppose to return the money to the investor that he has invested till date ….My question is if builder refused to accept my withdrawal application and does not return money..Do I have a strong case?

Dear SKD

Yes paying EMI and Rent at the same time is very difficult. But You have definetly a very good case, builder cannot refuse to accept the withdrawal if it has been written in the agreement, you will definitely get your money back.

Regards
Adarsh Aggarwal
Advocate

[shubhohere]

Alternately you can sale it to the secondary market, if there are option(s)..

[shatrunjaya.shatrunjaya443]

KST-SBI Tower Whispering heights Sector88

Hello Adarsh,

We shall be grateful if you could Opine on Our case detailed Below:

State Bank Employee Housing Welfare Organisation (SBEHWO) registered in Panchkula offered Housing scheme to mainly SBI employees in 2006. Only 2 or 3 persons are in the SBEHWO governing body.

Interested SBI employees were made members & Offered different options 2,3,4BHK with assurance that SBEHWO would buy the Land & get the Flats constructed by 2008/2009. Employees on Faith & Goodwill of sbehwo became members & paid initial payments.

Around 2007 end, SBEHWO declared that they would be working with KST builder who is constructing many towers on Sec88 Land & SBEHWO would buy 1 Tower from KST for its members.

All around 2008 SBEHWO kept assuring that Land/Map/masterplan clerance process, Flat no. Draw etc. Excavation also started & SBEHWO kept collecting payments as per Construction Linked.

In 2009 SBEHWO communicated that all members shall directly Deal with KST, shall sign agreement with KST & avail Home Loans for further payments. They informed that SBEHWO has transferred all the payment collected from members to KST without Members' knowledge or approval.

KST forwarded the BBAgreement thru which we came to know that KST is operating on Power Of Attorney of RPS Land and thus title is not Clear. State Bank of India rejected all loan applications due to this, even to its employees.

From 2009 we have been trying to secure SBI loan or kind of SBI approval for this project. But no use. KST has constructed majority of Tower Structures, However left the SBI Tower with just 2 floor structure against Final 18 storeyed. Members have stopped the payment since then due to Unclear Title, Delay in Constructions, Inconsistent Commitments.

95% members have not signed any agreement with KST. Average payment done by members to SBEHWO is in the range of 40% ~70% of the Project Cost.

Now all the members want to initiate Legal action against SBEHWO for refund of Amount Paid + Interest + oppurtunity Lost (as there is no agreement with the builder-However builder has issued payment receipts as well as SBEHWO too to all the members for amount paid so far).

Just as reference now only 2 persons are active for SBEHWO- One is already retired from SBI & other one is going to retire in June 2012.Also this is just the SBI group Tower case. There are about 5 other Non SBI towers also in the complex for which those members have already paid 75~90% payment. Off course they all have signed BBAgreement with KST.

We would be grateful if you could advise our Group (25~50 persons) the kind of legal action be taken. (Consumer court/criminal case/civil/CCI...)

[shatrunjaya.shatrunjaya443]

Please suggest appropriate action on the below detailed matter.

Thanx

KST-SBI Tower Whispering heights Sector88

Hello Adarsh,

We shall be grateful if you could Opine on Our case detailed Below:

State Bank Employee Housing Welfare Organisation (SBEHWO) registered in Panchkula offered Housing scheme to mainly SBI employees in 2006. Only 2 or 3 persons are in the SBEHWO governing body.

Interested SBI employees were made members & Offered different options 2,3,4BHK with assurance that SBEHWO would buy the Land & get the Flats constructed by 2008/2009. Employees on Faith & Goodwill of sbehwo became members & paid initial payments.

Around 2007 end, SBEHWO declared that they would be working with KST builder who is constructing many towers on Sec88 Land & SBEHWO would buy 1 Tower from KST for its members.

All around 2008 SBEHWO kept assuring that Land/Map/masterplan clerance process, Flat no. Draw etc. Excavation also started & SBEHWO kept collecting payments as per Construction Linked.

In 2009 SBEHWO communicated that all members shall directly Deal with KST, shall sign agreement with KST & avail Home Loans for further payments. They informed that SBEHWO has transferred all the payment collected from members to KST without Members' knowledge or approval.

KST forwarded the BBAgreement thru which we came to know that KST is operating on Power Of Attorney of RPS Land and thus title is not Clear. State Bank of India rejected all loan applications due to this, even to its employees.

From 2009 we have been trying to secure SBI loan or kind of SBI approval for this project. But no use. KST has constructed majority of Tower Structures, However left the SBI Tower with just 2 floor structure against Final 18 storeyed. Members have stopped the payment since then due to Unclear Title, Delay in Constructions, Inconsistent Commitments.

95% members have not signed any agreement with KST. Average payment done by members to SBEHWO is in the range of 40% ~70% of the Project Cost.

Now all the members want to initiate Legal action against SBEHWO for refund of Amount Paid + Interest + oppurtunity Lost (as there is no agreement with the builder-However builder has issued payment receipts as well as SBEHWO too to all the members for amount paid so far).

Just as reference now only 2 persons are active for SBEHWO- One is already retired from SBI & other one is going to retire in June 2012.Also this is just the SBI group Tower case. There are about 5 other Non SBI towers also in the complex for which those members have already paid 75~90% payment. Off course they all have signed BBAgreement with KST.

We would be grateful if you could advise our Group (25~50 persons) the kind of legal action be taken. (Consumer court/criminal case/civil/CCI...)

[shatrunjaya.shatrunjaya443]

Hello All / Experts,

If Mr. Adarsh is not available, anyone Else Competent Please Advise on the below matter.


Thanx
Shatrunjaya

Please suggest appropriate action on the below detailed matter.

Thanx

KST-SBI Tower Whispering heights Sector88

Hello Adarsh,

We shall be grateful if you could Opine on Our case detailed Below:

State Bank Employee Housing Welfare Organisation (SBEHWO) registered in Panchkula offered Housing scheme to mainly SBI employees in 2006. Only 2 or 3 persons are in the SBEHWO governing body.

Interested SBI employees were made members & Offered different options 2,3,4BHK with assurance that SBEHWO would buy the Land & get the Flats constructed by 2008/2009. Employees on Faith & Goodwill of sbehwo became members & paid initial payments.

Around 2007 end, SBEHWO declared that they would be working with KST builder who is constructing many towers on Sec88 Land & SBEHWO would buy 1 Tower from KST for its members.

All around 2008 SBEHWO kept assuring that Land/Map/masterplan clerance process, Flat no. Draw etc. Excavation also started & SBEHWO kept collecting payments as per Construction Linked.

In 2009 SBEHWO communicated that all members shall directly Deal with KST, shall sign agreement with KST & avail Home Loans for further payments. They informed that SBEHWO has transferred all the payment collected from members to KST without Members' knowledge or approval.

KST forwarded the BBAgreement thru which we came to know that KST is operating on Power Of Attorney of RPS Land and thus title is not Clear. State Bank of India rejected all loan applications due to this, even to its employees.

From 2009 we have been trying to secure SBI loan or kind of SBI approval for this project. But no use. KST has constructed majority of Tower Structures, However left the SBI Tower with just 2 floor structure against Final 18 storeyed. Members have stopped the payment since then due to Unclear Title, Delay in Constructions, Inconsistent Commitments.

95% members have not signed any agreement with KST. Average payment done by members to SBEHWO is in the range of 40% ~70% of the Project Cost.

Now all the members want to initiate Legal action against SBEHWO for refund of Amount Paid + Interest + oppurtunity Lost (as there is no agreement with the builder-However builder has issued payment receipts as well as SBEHWO too to all the members for amount paid so far).

Just as reference now only 2 persons are active for SBEHWO- One is already retired from SBI & other one is going to retire in June 2012.Also this is just the SBI group Tower case. There are about 5 other Non SBI towers also in the complex for which those members have already paid 75~90% payment. Off course they all have signed BBAgreement with KST.

We would be grateful if you could advise our Group (25~50 persons) the kind of legal action be taken. (Consumer court/criminal case/civil/CCI...)