Dispute between builder and landowner.

Pillala Sudarsan (Querist) 04 December 2025 This query is : Resolved
(1) My family as a landowner in Visakhapatnam, Andhra Pradesh, entered into an agreement with builder for Rs 4 Crore and 2 flats as our family share in return for Re-development of our land.
However, in the registered document 'Development agreement and GPA', made in Dec 2022, only 2 flats (out of 10 flats) were mentioned as our share. Builder did not agree to mention the cash component of Rs 4 Crore in the agreement document. Builder and my family signed MOU (unregistered), made in Feb 2024, wherein our share was mentioned correctly as Rs 4 Crore and 2 flats. Till Dec 2025, builder sold 4 flats but gave only 50 Lakh. Both in MOU and Redevelopment agreement, it was mentioned that project will be completed in 18 months with 3 months grace period from the start of the project.

My question is will MOU stand valid in court? Would court understand that our share is Rs 4 Crore and 2 flats? Should I approach civil, consumer or RERA court?

(2) Another point I like to bring out is that though construction was started in Jan 2023 and is now almost completed. Builder is not getting completion certificate. In fact, he made sale deed for 2 flats and transferred to his business partner in Jan 2024. But in the RERA document, it was mentioned, incorrectly, project approved date as 20th Jan 2025 and expected completion date as 09-02-2027.

Is this legal? what is the right action for the above 2 queries as a land owner?

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A landowner entered into a redevelopment agreement with a builder, expecting Rs 4 Crore and two flats. However, the registered agreement only mentioned the flats, and the builder has been slow to pay the cash component and complete the project. An unregistered MOU later clarified the landowner's share, but its validity is questioned. The landowner seeks advice on whether the MOU is legally binding, how to prove their agreed share, and which court (civil, consumer, or RERA) is most appropriate for their case, especially given discrepancies in project completion dates and the builder selling flats before registration.

kavksatyanarayana (Expert) 04 December 2025
The Development agreement cum GPA was executed and registered in December 2022, and the construction was started in 2023. When was the plan approved? In the Plan Proceedings, the date of construction and the date of completion of the building/apartment will be noted. Which date of completion is noted in the proceedings? The builder can sell flats before construction, but he shall give you the amount of consideration of 4 crores and 2 flats at the time of completion of the building/hand over the same.
The unregistered MOU is not valid. If the builder will not hand over the building in time, you can file a case against the builder in the Consumer Commission, and he will not give the amount of 4 crores, you can file a recovery case in the civil court.

Dr. J C Vashista (Expert) 05 December 2025
Unregistered MoU has no legal value in a dispute. However, you may oblige the builder out of law / court.
Terms of agreement shall prevail, untill not violated by either party.

T. Kalaiselvan, Advocate (Expert) 05 December 2025
Your problem involves lot of issues, for rendering a proper opinion, a thorough scrutinization of the documents is pertinent, hence you may consult an experienced lawyer in the local and proceed as suggested.

Dr. J C Vashista (Expert) 06 December 2025
I fully agree with learned senior expert Mr. T Kalaiselvan, it is appropriate to consult a local prudent lawyer with relevant records for proper appreciation of facts / documents and professional advise / necessary proceeding.

Sri Vijayan.A (Expert) 07 December 2025
The matter needs a detailed scrutiny of documents vi., registered construction agreement and unregistered MoU.
However, it is noted that the builder has given Rs.50,00,000 which validates the MoU.

Explore the feasibility of lodging a complaint with RERA.

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