Misrepresentation

SAMIR SHAH (Querist) 23 October 2015 This query is : Resolved
i have entered into a MOU FOR PURCHASE OF FLAT (RESALE). THERE IS A MISREPRESENTATION DONE BY THE SELLER AS HE HAS STATED IN MOU THAT THERE ARE NO LIABILITIES OUTSTANDING AND NO LITIGATIONS ON THE SAID FLAT. THE SOCIETY HAS GIVEN US A NO DUES CERTIFICATE ALSO. NOW WE HAVE COME TO KNOW FROM THE DOCUMENTS GIVEN BY THEM THAT THERE IS A PROPERTY TAX OUTSTANDING ON THE SOCIETY WITH 62 MEMBERS SOME OF WHICH BEING COMMERCIAL AND BALANCE RESIDENTIAL OF RS. 3.65 CR. AND A STAMP DUTY O/STD OF RS.45.00 LACS SINCE 1999 WHEN THE BLDG WAS REDEVELOPED AND THE PARTY SAYS THAT SINCE IT IS A LIABILITY OF DEVELOPER THEY ARE NOT PAYING IT AND HENCE THE SOCIETY IS NOT HAVING PROPERTY CARD IN ITS NAME. THE PARTY IS NOT READY TO GIVE THE EARNEST MONEY BACK AS HE SAYS THERE IS NO LAIBILITY.I AM HAVING PROOF OF MUNICIPAL CORPORATION. PLEASE GUIDE WHETHER I SHOULD GO FOR CIVIL SUIT OR A CRIMINAL CASE ON THE GROUND OF MISREPRESENTATION/ FRAUD.

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Anirudh (Expert) 23 October 2015
You can go for both - civil case as well as criminal case.

SAMIR SHAH (Querist) 23 October 2015
WHICH IS ADVISABLE AS I AM BEING TOLD THAT IN A CIVIL SUIT IT WOULD BE MINIMUM 4/5 YEARS AND THE COST WILL ALSO BE HIGH WHEREAS IF A CRIMINAL CASE IS FILLED THE EXPENSES SHALL BE LOWER AND MAY BE DUE TO SUMMONS AND OTHER ISSUE THE PARTY MIGHT COME TO NEGOTIATE.

Anirudh (Expert) 23 October 2015
In criminal case, there is no guarantee that you will get your money back. If his criminality is proved then he will stand convicted and sentenced. That's all.

In civil suit, you cannot punish a person but can hope to recover the money.

The choice is yours.