Shankar (Self) 06 July 2023

Mortgage release from municipal corporation

Hello All, We recently gave a site to builder for development. Even after three months he did not start the project saying that he did not get permission from the municipality for the number of floors mentioned in the development agreement due to not meeting the abutting road requirements. He already mortgaged 1/4th of property to local municipality as part of procedure. The work never started and we finally cancelled the development agreement with no investment from the side of builder. Both the agreement and cancellation deeds are registered. Now he is not working towards getting clearance from municipality for release of mortgage. Under what sections can I sue him and can I claim any damages, please guide. Thanks

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5 Replies

Dr. J C Vashista (Advocate ) 07 July 2023

It is advisable to show the agreement to a local prudent lawyer for proper guidance and necessary proceeding.

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Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 ) 07 July 2023

Yes, you have the option to cancel the agreement or get the agreement complied by the builder if builder breaches any of the terms of the agreement.

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P. Venu (Advocate) 12 July 2023

"He already mortgaged 1/4th of property to local municipality as part of procedure". How and why? Thsi aspect is less than convincing.

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Shankar (Self) 25 July 2023

P. Venu Sir, he said he did not get permission for the number of floors agreed but in the mortgage document he mentioned the town planning permission is provisionally agreed and proceeded to mortgage 1/4th the property. I am asking him why did he proceed to mortgage without getting permission from Townplanning authority. He is not giving proper answer. Kindly let me know will this fall under criminal act, Thank you.