Mohammadazam Riaz
Asked February 27, 2017

Purchase of Flat: Legal issues

  • 4 Answers
  • 1010 Views

In May10, I booked a flat of 1375 sq ft super area in Ajnara Homes in Noida Extention Plot no. GH-03, Sector 16B Greater Noida Uttar Pradesh. The possession date was in February 2014, but after Supreme Court stay of around 1.5 years, new possession was due in December 2015. But further delayed the possession. I got pre-possession letter in January 2017 & have been asked to pay Additional (farmer) compensation Charges Rs 96950/-. Its levied on the account due to farmers agitation in Greater Noida. As per court order money had to be paid to farmers so they asked builder to pay it. Here as per builder court had ordered to get money from buyer which has been imposed by GNIDA. Do we buyers have to pay this amount? Builder has asked me to make a DD of above amount in favor of "Greater Noida Industrial Development Authority". Kindly guide me.

Answers 4

You can ask builder to provide a copy of court order / any notification which makes it clear that the farmer compensation ordered has to be borne by the buyer

also you can study your builder buyer agreement if it has any clause which entitles builder to recover such additional expenses from the buyer.

Agree Comment 0 Agrees over 3 years ago

If you have signed a cost escalation clause in any of the agreement/s  while purchasing this property, then I believe that the builder can justify handing down these additional expenses to you in the name of contractual clauses.

 

However, under Section 2 of the Consumer Protection Act, 1986, you can consider filing a case at any consumer court for the charges of over-pricing and delay in possession of flat- this was achieved in the case of Swaran Talwar & 2 others v. M/s Unitech Limited, Consumer Case No. 347 of 2014, decided by the National Consumer Redressal Commission (NCDRC), which is the highest forum for consumer protection in India.

   

You have to follow these steps while filing a consumer complaint-

STEP 1:   At first identify the Jurisdiction of the Forum where the complaint is to be filed. This issue needs to be identified from two angles of jurisdiction i.e. Territorial and Pecuniary.

The Consumer has to take into consideration both the territorial and pecuniary jurisdiction of the tribunal in mind before filing his complaint and has to choose the correct forum.

Territorial Jurisdiction of the Consumer Forums :-

A complaint shall be instituted in a District Forum or State Commission or National within the local limits of whose jurisdiction,—

a)  the opposite party resides or caries on business or has a branch office or personally works for gain, or

b)   If there are more than one opposite aprty, then any one of the opposite parties resides, or carries on business or has a branch office, or personally works for gain,

Provided that in such case the permission of either District Forum, State Commission or National Commission as the case may be, or the opposite parties who do not reside in such place or carry on business or have a branch office or personally works for gain as the case may be, must be obtained , or

c)  the cause of action arose.

PECUNIARY JURISDICTION OF CONSUMER FORUMS

Forums                                                 Amount

District Forum                              Upto Rs. 20 Lakhs

State Commission                  Rs. 20 Lakhs to Rs. 1 Crores

National Commission               Exceeding Rs. 1 Crores

Step 2:  You will be required to pay a prescribed fee along with your complaint before the District Forum, State Commission & the National Commission as the case may be.

Step 3:   Then you have to draft your complaint stating facts necessary to establish a cause of action.

Step 4:   At the end of the complaint you have to put your signatures. In case any other person is authorised to file the complaint then complaint has to be accompanied with authorisation letter.

Step 5:   Don’t forget to mention the name, description and address of the complainant and the name, description, address of the opposite party or parties against whom relief is claimed.

Step 6:   Copies of all the documents supporting your allegations. In this you can put on record the copy of the bill of the goods bought, warranty and guarantee documents and also a copy of the written complaint and notice made to the trader requesting him to rectify the product.

Step 7:  You can also ask for compensation costs which should be specifically alleged in the complaint. Besides compensation, a consumer can also ask for the refunds, damages, litigation costs, and interest amount. You must give the breakup of amount claimed under different heads but do remember to claim compensation or other relief as per the pecuniary value of the forums.

Step 8:   Explain in your complaint as to how the case falls within the jurisdiction of this forum.

Step 9:   Complaint must clearly state as to what relief is sought against the opposite party.

Step 10: The Act provides for limitation period of two years from the date of cause of action. In case there is delay in filing the complaint, please explain the delay which can be can be condoned by the Tribunal.

Step 11: You are also required to file an affidavit along with the complaint that facts stated in the complaint are true and correct.

Step 12: The complainant can present the complaint in person or by his/her authorised representative without engaging any advocate. The complaint can be sent by registered post. A minimum of 5 copies of the complaint is to be filed in the forum. Besides this you have to file additional copies for each opposite party.

 

 

Agree Comment 0 Agrees over 3 years ago

If you have signed a cost escalation clause in any of the agreement/s  while purchasing this property, then I believe that the builder can justify handing down these additional expenses to you in the name of contractual clauses.

 

However, under Section 2 of the Consumer Protection Act, 1986, you can consider filing a case at any consumer court for the charges of over-pricing and delay in possession of flat- this was achieved in the case of Swaran Talwar & 2 others v. M/s Unitech Limited, Consumer Case No. 347 of 2014, decided by the National Consumer Redressal Commission (NCDRC), which is the highest forum for consumer protection in India.

STEP 1:   At first identify the Jurisdiction of the Forum where the complaint is to be filed. This issue needs to be identified from two angles of jurisdiction i.e. Territorial and Pecuniary.You have to follow these steps while filing a consumer complaint-

The Consumer has to take into consideration both the territorial and pecuniary jurisdiction of the tribunal in mind before filing his complaint and has to choose the correct forum.

Territorial Jurisdiction of the Consumer Forums :-

A complaint shall be instituted in a District Forum or State Commission or National within the local limits of whose jurisdiction,—

a)  the opposite party resides or caries on business or has a branch office or personally works for gain, or

b)   If there are more than one opposite aprty, then any one of the opposite parties resides, or carries on business or has a branch office, or personally works for gain,

Provided that in such case the permission of either District Forum, State Commission or National Commission as the case may be, or the opposite parties who do not reside in such place or carry on business or have a branch office or personally works for gain as the case may be, must be obtained , or

c)  the cause of action arose.

PECUNIARY JURISDICTION OF CONSUMER FORUMS

Forums                                                 Amount

District Forum                              Upto Rs. 20 Lakhs

State Commission                  Rs. 20 Lakhs to Rs. 1 Crores

National Commission               Exceeding Rs. 1 Crores

Step 2:  You will be required to pay a prescribed fee along with your complaint before the District Forum, State Commission & the National Commission as the case may be.

Step 3:   Then you have to draft your complaint stating facts necessary to establish a cause of action.

Step 4:   At the end of the complaint you have to put your signatures. In case any other person is authorised to file the complaint then complaint has to be accompanied with authorisation letter.

Step 5:   Don’t forget to mention the name, description and address of the complainant and the name, description, address of the opposite party or parties against whom relief is claimed.

Step 6:   Copies of all the documents supporting your allegations. In this you can put on record the copy of the bill of the goods bought, warranty and guarantee documents and also a copy of the written complaint and notice made to the trader requesting him to rectify the product.

Step 7:  You can also ask for compensation costs which should be specifically alleged in the complaint. Besides compensation, a consumer can also ask for the refunds, damages, litigation costs, and interest amount. You must give the breakup of amount claimed under different heads but do remember to claim compensation or other relief as per the pecuniary value of the forums.

Step 8:   Explain in your complaint as to how the case falls within the jurisdiction of this forum.

Step 9:   Complaint must clearly state as to what relief is sought against the opposite party.

Step 10: The Act provides for limitation period of two years from the date of cause of action. In case there is delay in filing the complaint, please explain the delay which can be can be condoned by the Tribunal.

Step 11: You are also required to file an affidavit along with the complaint that facts stated in the complaint are true and correct.

Step 12: The complainant can present the complaint in person or by his/her authorised representative without engaging any advocate. The complaint can be sent by registered post. A minimum of 5 copies of the complaint is to be filed in the forum. Besides this you have to file additional copies for each opposite party.

 

Agree Comment 0 Agrees over 3 years ago

Dear,

You will have to first ask for the copy of the said Order of Hon'ble Supreme Court, go through the same.  If the Supreme Court directed to collect the amount from buyers, then you have to pay for it.  Also go through the clauses of agreement regarding delayed possession.

Agree Comment 0 Agrees over 3 years ago

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