Recovery of advance amount from construction company
VENKATESH HEGDE
(Querist) 02 January 2014
This query is : Resolved
Dear colouges,
I have received a case relating to recovery amount of money from construction company. My friend booked a flat from a construction company and an allotment letter was issued. they asked to pay 25% of advance amount of Rs 15 lakh. But the booking flat has been allotted to land owner. my friend has been advised to look other flat & its 3 BHK much more higher to his budget. Disagreeing there advice my friend was asked for repayment of advance money.from the last 3 month, they simply avoiding the payment. There is no contract( my friend only signed agreement for sale ) Now my question is how can i go further ? Can i file a consumer case or recovery suit? is this facts attracts jurisdiction of consumer court ?
With many thanks,
regards
Venkatesh Hegde
Advocate M.Bhadra
(Expert) 02 January 2014
You can send a Legal Notice to the Construction Co. and if they would not comply then file a Case in District Consumer Forum for unfair trade practice and deficiency of service against the Construction Company.Alternately you can file a Suit for Specific Performance of Contract in Civil Court.But best option is to file a case in Consumer Forum.
The services by builder are covered under the Consumer Protection Act.
You can file a complaint in case the builder has given you deficient services regarding the following:
1) Charged higher than agreed amount.
2) Did not give a receipt against the paid amount.
3) Delivered a poor quality construction.
4) Delivered a house that does not comply with the specifications agreed upon.
5) Did not provide for free parking space within the compound / complex.
6) Did not form co-operative housing society and handed it over to its members.
7) Did not provide for water storage tank.
8) Did not provide for enough ventilation and light.
9) Did not deliver the house within the agreed time limit. If time limit not mentioned, it is assumed that the construction will be finished within maximum of 2 years from the date of start of work.
7) Did not give accounts for the expenses against which the builder has collected money, i.e. maintenance, electrical installations (transformer),
8)Advance amount received bu not deliver the possession etc.
If any consumer have grievance against builder, send a notice to him in writing. If he refuses to accept your notice as only proof of sending is required. Send the notice by registered post or Under Postal certificate. Retain the proof of sending. The proof of sending is valid in the Consumer Court Under Section 28A (3) of the Consumer Protection (Amendment) Act of 2002 and will be considered as the notice has been duly served.
Advocate Bhartesh goyal
(Expert) 03 January 2014
File complaint before District Consumer Redressal Forum against construction companydor their deficiency of their services and unfair trade practice.
malipeddi jaggarao
(Expert) 03 January 2014
Your friend must have paid the part-consideration of the sale agreement by way cheques. This will form part of evidence against the construction company even though there is no sale agreement signed by both the parties. But there should be some evidence like allotment letter that your friend was originally allotted the disputed flat.
Devajyoti Barman
(Expert) 03 January 2014
This is a fit case for consumer forum where you would apart form getting regular reliefs would get compensation as well.
ajay sethi
(Expert) 03 January 2014
move consumer forum for necessary reliefs .
Rajendra K Goyal
(Expert) 03 January 2014
Your friend can also lodge criminal complaint against the builder for his fraudulent act.
T. Kalaiselvan, Advocate
(Expert) 03 January 2014
Consumer forum for deficiency of service, civil court for specific performance of contract or recovery of money, because the receipt of money has been acknowledged by the builder.
VENKATESH HEGDE
(Querist) 04 January 2014
Thanks for your valuable suggestion. i will advice the same..
