VORA (Business Development) 27 May 2011

Demand note without commencement certificate

DEAR LEARNED LAWYERS

I HAVE BOUGHT A FLAT ON 26TH FLOOR WITH ONE REPUTED BUILDER IN MUMBAI. THE BUILDER HAS COMMENCEMENT CERTIFICATE ONLY UPTO 6TH FLOOR AND HAS ALREADY SENT ME DEMAND NOTES FOR VARIOUS STAGES OF CONSTRUCTION LIKE FOOTING-PLINGTH-1ST FLOOR SLAB-4TH FLOOR SLAB ETC AND COLLECTED 45% OF THE TOTAL VALUE AT WHICH THE FLAT WAS BOOKED. THE BANK FROM WHICH I TOOK HOUSING LOAN IS REFUSING TO DISBURSE THE AMOUNT AS PER THE DEMAND NOTES STATING THAT SINCE BUILDER DOES NOT HAVE CC FOR 26TH FLOOR ON WHICH MY FLAT IS LOCATED, THEIR LEGAL DEPT WILL NOT PERMIT THE DISBURSEMENT. MY QUESTION IS CAN A BUILDER RAISE DEMAND NOTES FOR DIFFERENT STAGES OF CONSTRUCTION ON BUYERS OF HIGHER FLOORS WITHOUT OBTAINING THE COMMENCING CERTIFICATE FOR THE SPECIFIC FLOOR ON WHICH THE FLAT IS PURCHASED? KINDLY GIVE YOUR OPINION-I AM READY TO EVEN PAY CONSIDERATION FOR THE LEGAL HELP.

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2 Replies

Bharatkumar (ADVOCATE ) 28 May 2011

Without COMMENCEMENT CERTIFICATE bank can not disburment. Builder pass a Bulding plan pasa from Authority if yes u submit that in Bank otherwise not option. I think u give other amount to the builder after take a COMMENCEMENT CERTIFICATE from the Authority.

Raj (Owner) 23 February 2014

Respected Lawyer Members,

I am in construction business and going to start construction project in Gujarat near Vadodara city.

The plot where proposed project will be constructed comes in gram panchayat authority. I have applied for commencement certificate and provide all revenue related documents but now Talati is asking me to submit layout plan of the survey no. the plot is non agricultural. now my query is that can it is compulsory to submit layout plan of the survey no. because I dont have the same. plz guide me in this case.