What Are the Rights of the Purchaser of an Apartment?
Question asked by Mr Sugato Banerjee from Bangalore:
Vatsala,
I have purchased a 2BHK apartment with covered car park at Bangalore. The registration for the same has been done in Nov 2007. Khata transfer is still not done. I have taken possession on 18 April 2008, whereas the committed possession date in the Construction Agmt is that of October 2007. There is still a whole lot of the project still undone – including lift, parking, gym, children’s play area, and a toddler’s pool. The builder has been asking for the pending amount (less than 7% of the transaction value with the builder). Now, the situation is as follows.
I had told the builder that I will pay off the remaining amount provided he exchanged the possession letter stating ‘full and final settlement’ with the remaining cheque, or a draft, whichever is acceptable to him (because he has refused to give any receipt so far, and do it this time as well). The builder kept citing varied reason – like busy with project completion work – to state that the letter will be provided only when the cheque has been encashed, and he is convinced that there is nothing pending from me to him. He also proposed doing a survey of my apartment to find out what additional expenses has been incurred, to find out the exact additional amount chargeable to me. Finally he has also done the survey of my apartment, and stated he is willing to give the letter, but wants the remaining money to be paid through unnamed cheques and the additional amount in cash, for which he will provide no receipt. He has apportioned different amount to the different buyers for this additional amount which they have to pay him. And the full and final settlement letter he will provide after a few days when the amount is credited to his account. When I insisted on exchanging the draft (which is as good as cash transaction) with the letter he refused to accept. He also refuses to state, what all are the pending works on his project which he needs to complete, in this letter. I am wary he might not give me the letter once he has received the money and might harass me for more money subsequently. Off late, he has also started fiddling with my power meter and pulling out my power connection threateningly displaying what discomfort he can cause to me. My wife is pregnant, and she and I are going through a harrowing experience through this over the last couple of weeks. Off late, he has started saying he will construct asbestos sheet cover across the side and back elevation space between the building wall and the boundary wall and provision for the car parking there. He will utilise the space in the basement (usually allocated for car parking) for constructing an apartment and sell it off. When asked of the legality of this apartment, he stated that they can do such illegal stuff. When asked who will pay up the maintenance of the asbestos sheet covered car park, he stated that this will be the onus of the society. And who pays up for legalising all the illegal construction that he has done so far – he said the society will have to bear it, because he will obviously not be around, once the society is formed.
Question:
i. Can the builder ask for more money outside of the contracted value from the purchaser? We entered the contract with the premise that he will get certain minor modifications in the kitchen area done, for which he will not charge. Now he is threatening to charge for that amount as well.
ii.Can the builder harass customers by fiddling the power meter? I have heard this is illegal. What is the procedure to ensure he does not do this in future?
iii.What are my rights at this point, and what action can I take to overcome the situation, given that Khata transfer is not completed yet?
iv.What is the procedure if he allocates inappropriate parking space to the purchasers? What compensation is he liable to pay?
v.In case I and other owners sue the builder and there is some injunction or some such thing by the court, what would be the situation and consequences faced for the owners and the builder?
Please advice at the earliest. Thank you.
Regards,
A Reader
Vatsala Answers:
1. The agreement entered into between you and the builder is sacrosanct and you are required to pay only that amount. Extra modifications, however, can be charged despite the oral agreement.
2. Regarding the power meter, you should file a suit for nuisance against him or give a police complaint. However the onus of proving the same will be on you.
3. The transfer of Khata can be done by yourself and is your right. It is not connected to the other problems mentioned by you. You can move the appropriate consumer forum for deficiency in service and damages for delay in possession, mental harassment and developer’s demand for extra payment.
4. If you file a case and lose, there is no consequence.
5. You can definitely stop all illegal construction and illegal allotment of car park by taking an injunction order. A copy of the sanctioned plan should show where the parking slots should be positioned.
Vatsala
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