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NightCrawller   25 February 2024

Vested interest and multiple bankrupt companies under builder



my building is going under redevelopment but the managing committee and others insist on a builder who is giving 2% less space then other competing builder and has multiple struck off(bankrupt companies) listed under mca which can be seen online. following are more points to not go with the builder but managing comitee is adamant that our way or highway:


1. builder's mother and father(who is contractor) own a shop in our building which leads to vested interest majority voted for them to develop but minority were ruled out even law forbids.

2. 2/3 companies listed at his corporate adress are struck off.

3. his corporate address seems to be rented out but they deny.

4. builder giving 4 month rent in advance and no deposit for new rental. it requires 4-6months rent as deposit.

5. builder getting 4.1 fsi under 33/11b scheme of redevelopment but giving us only 21% extra space. he will get 4x space eg 1k x 4.1 = 4100 sqft and giving us 1200 total. one building next to us went for redevelopment it is rumored they are getting 40-45%.

6. he Is giving less corpus fund compared to neighbouring projects. 1k per sqft compared to 2-4k. I don't have legal proof because people share this orally.

7. builder has not developed any projects since 2020 and 33(11)b scheme was launched in around 2021. Real reason is bankruptcy. builder did not submit his balance sheet but a paper from CA saying balance sheet is net positive.

8. our fsi is 3.1 + 1 = 4.1 under 33(11)b because extra 1 fsi needs to be purchased from sra which is termed as ptc. builder does not have ptc he said in a letter that he will purchase when required.

9. if I file a case then builder will burn me with my new flat with poor construction or less sqft and court cases.


i have mentioned all possible points that I can recall at the moment. what sections I can apply and get stay order for this? because if the builder is indeed insolvent how to find out?



 2 Replies

T. Kalaiselvan, Advocate (Advocate)     25 February 2024

This requires a detailed discussion with an experienced lawyer and to guide you for initiating proper legal action in this regard.

You are scared about the builder at one side and the other side you want to take strong action.

If you are afraid of the builder then you will never be able to take any action against him

NightCrawller   25 February 2024

if the law protects me then why should I be scared? I am. not scared I am just afraid of falling prey to wrong people. does the law has provision to get stay order? you seem to have just focused on last point.

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