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RashiK (NA)     09 June 2015

Harayana vat issue

Hi- I have a property with Emaar MGF at Palm Drive, Sector 66- Gurgaon. The builder has started handing over the units in this property but Emaar is insisting that before the owners can receive the keys of apartments they make a fixed deposit of 5.7% with Kotak Bank in liu of the Haryana Vat charges. Per my knowledge Emaar is one of the builders which is fighting the case against the HVAT at the Punjab & Haryana courts & looking to pursue the same in supreme court too. If  the matter is subjudice then is it legal for the builder to ask for such securities? In the indeminity bond that owners are supposed to sign, it clearly states that EMAAR is not asking for HVAT till this matter is subjudice but asking for a fixed deposit which the builder will get transferred in its name when the case resolves & take the appropriate percentage doesn't seem like a legal route. I also want to know if as a owner who has made all due payments for the apartment do I have a legal right to deny this fixed deposit & carry on with the registration of the apartment & take handover? Thanks.



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