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Rajeeb Ranjan Mallick   23 June 2024

New builder of an unfinished complex insisting upon a supplementary agreement

Dear Sir/Madam, 

II purchased a shop in 2012, which was to be handed over on 31st December, 2013. The earlier builder defaulted on the loan he had taken from the financier. The financier invoked the mortgage clauses and took over the unfinished project, and handed over to a new builder. The new builder is enforcing fresh terms and conditions, onerous and unjust upon me, asking me to get it registered at my own cost. Though the previous agreement with the earlier builder has been registered in 2013, paying the full stamp duty and registration charges. 

Can the new builder enforce those onerous terms on me? 


 8 Replies

T. Kalaiselvan, Advocate (Advocate)     23 June 2024

If your property has already been registered by  a sale deed, then there is no necessity for you to get it registered again.

However if the earlier registration was only towards the sale agreement then you may have to get the sale deed registered on your name to claim clear and marketable title to your name

kavksatyanarayana (subregistrar/supdt.(retired))     23 June 2024

Did you and the earlier builder executed a Sale agreement or the builder register the sale deed in your favour? 

Rajeeb Ranjan Mallick   23 June 2024

Thank you for the prompt response. It was an Agreement to Lease, for 999 years, which had been registered, with stamp duty & registration charges paid then. Now the building is complete, but the builder insists upon signing the Supplementary Agreement, at my cost, before he hands over the possession. I inquired from the Sub Registrar's Office and was told that if I register a Supplementary agreement, the department may also charge stamp duty on the additional amount as prices in 2012 and now has gone up. So differential amount to be paid. I am not sure whether it is correct. It is a double whammy for me. 

T. Kalaiselvan, Advocate (Advocate)     23 June 2024

You can analyze the situation and take a decision after consulting a local advocate with all relevant papers and decide further course of action. 

Dr. J C Vashista (Advocate )     24 June 2024

Registration of a document shall be required to be properly stamped and cost of stamp duty shall be paid by either of the parties, as agreed.

The property (shop) is stated to be on LEASE & LICENCE for 999 years accordingly title (ownership) is still retained by builder (successor), therefore, fresh or supplimentary agreement has to be registered (compulsorily) in terms of Section 17 of Registration Act, 1908.

Rajeeb Ranjan Mallick   24 June 2024

Thank you Sir! I agree that u/s 17 of the Indian Registration Act,  registration has to be done. The point is that Registration has already been done in 2013. The question is - that due to the failure of the previous builder to complete the project on time, and the new builder coming in, and with this over 10 years delay in giving possession, should I as the buyer continue to suffer? Neither did the previous builder disclose that he has mortgaged the property for raising funds,  neither was I made a party in the agreement when the new builder entered the scene. Should I not be governed by the terms and conditions of the registered Agreement to Lease signed in 2013? 

I am objecting to signing a Supplementary Agreement, because the builder has put clauses - that if any of the other unit holders default in making payments of Municipal taxes, Monthly maintenance charges, I will agree to bear the proportionate charges for the amount due from those defaulters. I find it absurd. 

Additionally, the Sun Registrar may ask for the Stamp Duty on the difference of the Circle Rate, which was there in 2012 and now. 

I have retired in 2019. And therefore cannot raise any fresh loan. The loan earlier taken continues. 


P. Venu (Advocate)     28 June 2024

Lease for a period of 999 years is as good as sale. 

Anyhow, the deed/agreement needs to be perused and issues before forming any opinion.

Rajeeb Ranjan Mallick   28 June 2024

Thank you, Sir! 

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