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krishnaswamy (Retired)     19 April 2015

Builder not completing the project

In Chennai a builder started a project for construction of 22 flats in the year 2011. I am one of the buyer and entered in to a sale agreement and construction agreement on Rs. 20 stamp papers. The sale agreement was not registered. Subsequently I got registered the sale deed for the un divided share of land .Similar is the case for another 18 buyers. The remaining 3 buyers also executed the sale agreement like me. But the builder cunningly executed sale agreement of these 3 flats with a financier and registered them to take huge amount of loan. As the builder has not registered the flats to the original 3 buyers considerable amount of money due form them is un paid to the builder. Now about 15 buyers including me have taken possession of the flats and we have formed a registered association. The builder is not completing the major external works like installation of lifts, Generator etc. and promises that all will be done after realising the dues from the 3 buyers after registering their flats. He is telling this excuse for the last 9 months. How to deal with him? What is the significance of registration of sale agreement and sale deed. Based on sale agreement can the financier lay claims on the 3 flats if the builder fails to re pay his loans?



 3 Replies

Kapil Chandna (Lawyer at Supreme Court of India)     19 April 2015

Sir, Send him a legal notice to do the needful or pay the compensation for the damages being caused and harassment because of non completion of the work .... He cannot do so because of the three defaulters.... Warm Regards Kapil Chandna Adv 9899011450

shyam ji srivastava (PRACTICING LAWYER)     19 April 2015

Dear Mr. Krishnaswami

First of all you sent a legal notice mentioning all deficiencies through a competent Lawyer who has knowledge of Consumer Protection Act thereafter if builder avoid it then filed a case either in District Consumer Forum or State Commission it depends upon the valuation of the Flat and Cmpensation and I am sure you will get success.

with best wishes

Shyam Ji Srivastava

Senior Lawyer



krishnaswamy (Retired)     19 April 2015

 The point is the other 3 are also our Association members. We want to take care of their interest also. They have also paid 60% of the flat cost and are not defaulters.. Since the builder has not registered the sale deed for them the banks are not releasing their loan instalment to the builder. The case is the builder has executed sale agreement with 2 persons for the same flat (One with the original buyer and the other with a financier). Original buyers sale agreement is not a registered where as the agreement with the  financier has been registered.  On the basis of his un registered sale agreement can the original buyer take legal action on the builder  for entering in to agreement with a  financier and registering it for the flat for which the original buyer has paid 60 % of the flat cot including the land cost for un divided share ? What action the Association can take to register the 3 flats to the 3 original buyers? 


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