A promoter has acquired power of attoney from a group of flat owners to demolish the existing (old) flats and construct new flats for them and also, add more flats and sell it to new purchasers. The existing owners were paid certain royalty money in addition to the promise to build a new flat. New purchasers were allotted UDS based on the power of attorney. Purchasers have paid almost 40% of the total negotiated price for the flat.
The promoter is facing financial constraints due to mis management of funds and other reasons and is not in a position to take this project forward, but buying time siting various proposed timelines for the past 3 years. The demolition is complete, but pending approval from CMDA due to pending fee payable to them. The promoter has only paid part of the royalty to the existing owners and is defaulting the rent and royalty payable to them as per the agreement.
The existing owners, for some reasons, are ready to wait for the promoter to build the flat, which seems very unlikely. Can the new purchasers form an association, consolidate their UDS and partition their portion separately for building the flats or selling it to another promoter? What is the recourse available for the new purchasers (who have UDS) if the existing owners are not ready to collaborate for a collective solution?
