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NAVEEN ARICHWAL (Senior Resident Emergency medicine)     14 March 2014

Illegal demands of builder and desire to get possession-

It is a Normal practice for Builder to ask in writing for many things like open Car Parking, Excess amount in EDC, Double charging of some facilities like Power Back up Meter Charges , Excess charking for IPTV,WiFi Internet facilities etc.

In a Case when the Buyer protests against this payment in writing, But Builder remains adamant and when the Buyer is in need of Possession of Flat, and he is forced to pay whatever the builder is asking him to pay to get the Possession, in such a situation , if Buyer pays all the demands under Protest. Than can he Pursue the route of Consumer Court after possession.

The normal practice of the Builders is to ask the buyer to sign a Indeminity Bond in which they write various statements like the full & final settlement of all dispute has been done between Builder & buyer and Buyer cannot sue the Builder in Future etc. The buyer is asked to sign that before Registry of Flat can be done,

In such a Situation when i want to approach consumer court after taking Possession , will my petition be accepted or will i not get any justice. 

Can the Builder be allowed to create such a situation where the Buyer has to accept all illegal demand yet the Builder escape the Long arm of Law.



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 4 Replies

NAVEEN ARICHWAL (Senior Resident Emergency medicine)     14 March 2014

This is a Situation faced by Large number of Buyers in Real estate, sector , I think Legal Experts should give a answer to this Because lots of People will get benefit from this information.

Subash M R (Advocate)     14 March 2014

Agreement for sale instead of indemnity bond must be the actual contractual document between the parties prior to the handing over the possession under the sale deed and its registration. The agreement for sale to be a balanced one giving equal rights and liabilities to all parties.Then, this malpractice be curbed to a certain extent.

Thanking you,

Subash.M.R.Advocate   

NAVEEN ARICHWAL (Senior Resident Emergency medicine)     14 March 2014

The sample of Indemnity Bond asked by the builder is attached . This is a Bond which the builder had asked to sign along with a Demand for fitout, which is a Completely illegal demand as per the attached RTI.(point 3 of RTI Reply)

This is just an example all builders ask Buyers to sign this before getting the Flat registered at tehsildar office.

If i have to get the Possession i have to sign it otherwise Penalty will be Levied on me and i will not get Possession .I want to know What can i do even after signing such a Document and take possession ?


Attached File : 304935170 fit out possession letter by era received on 12-dec-2013 (1).pdf, 304935170 rti fit out.jpg downloaded: 260 times

NAVEEN ARICHWAL (Senior Resident Emergency medicine)     16 March 2014

These various types of bonds etc are prepared by Advocates who join hands with Criminals, to earn easy money, and i think lots of advocates in this Forum would be doing the same to general public from this forum.


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