• Property tax liability is not transferred by builder in Pune

Dear sir/madam, 

i purchased flat in June 2017 from reputed builder in Pune. Flat is legally registered on my name and I got the possession as well. When I spoke with builder about property tax, they said they will be transferring the property tax liability within one year of purchase. Since property was built in 2015, and started handing over possession in 2015, I inquired few residents that they are receiving property tax bill or not. I came to know from other residents that property tax bill is received. when I went to property tax site and checked the property tax for my flat, it was showing about 78000 rs are due on builder name. when I approached to builder by calling them and email communication, i do not see much response from them. what i came to know from other few residents (3-4) who purchased flat in last year that builder does not pay the property taxes and we have bare that money from out pocket and also get the property tax liability changed by ourselves.

Sir, what should i do in this situation since builder is not responsive, not willing to pay the dues and also not transferring the property tax liability? 

Do I need to bare the property taxes which were due since 2015 year, however I purchased flat in August 2017 so why there is injustice with me?

Builder also added one clause in sale agreement that the local taxes should be paid by purchaser (irrespective any time purchase) after the date of handing over the first flat to the first purchaser in society, so in that case the first purchaser had given possession in 2015 so does it mean that i do not way to legally fight with builder due to such clauses in an agreement.

Sir, please advice.

Thanks,
Pramod
Asked 6 years ago in Property Law
Religion: Hindu

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15 Answers

You can send a legal notice to him. If he doesn't respond you can file Consumer Complaint against him.

Prashant Nayak
Advocate, Mumbai
32479 Answers
201 Consultations

Hello,

Hire a local lawyer and send him a legal notice . You can file a consumer court case if you did not get respinse from his end.

Hope this helps.

Regards.

Swarupananda Neogi
Advocate, Kolkata
2973 Answers
6 Consultations

You are not liable to pay property taxes prior to purchase of flat in 2017

2) the clause in agreement that you are liable to pay from 2015 is arbitrary, one sided and unsustainable

Ajay Sethi
Advocate, Mumbai
96937 Answers
7821 Consultations

1. Please note till the date of final payment of the flat it is the exclusive liability of the builder to pay the propriety tax.

2. So there is no question of yours t pay the arrears property tax. Your liability to pay the same can be stretched beyond the period when you became its full owner.

3. So if the builder does not respond or refuses to pay this amount you can file a case before the consume forum.

4. The consumer forum is equipped to direct the builder to clear the arrears and even may award commendation to you for casing harassment and mental agony.

Devajyoti Barman
Advocate, Kolkata
23220 Answers
514 Consultations

Send a notice to the builder asking him to pay the property tax amount pending in his name till 2017 or the date of your purchase.

Also you can pay and recover same amount from builder if there is any statutory penalty leviable as the tax is pending since 2015.

If builder doesnot answer notice or doesnot pay file a case before consumer forum to recover the amount of property tax.

Also the clause is arbitrary in nature as it doesnot specifiy nature of taxes and it is one sided so it shall be not be considered though you should have objected to such clause before agreeing.

Shubham Jhajharia
Advocate, Ahmedabad
25514 Answers
179 Consultations

Did the builder give any reply to your email? What is the situation of other flat owners who took possession since 2017?

If you all are facing the same problem then jointly you all can take legal step by seeking help from a local Lawyer. Or else if you individually want to get some legal help then at first try to sort out the situation mutually. If that is not satisfactory then give the builder a notice because you have taken possession from 2017 so if there is any due starting from the time of your name transfer (property tax liability), you will pay that only. Prior dues need to be cleared by the builder.

"Builder also added one clause in sale agreement that the local taxes should be paid by purchaser (irrespective any time purchase) after the date of handing over the first flat to the first purchaser in society, so in that case the first purchaser had given possession in 2015.." - If this is a clause already mentioned then the builder was supposed to transfer the property tax at the Time of possession by disclosing about the dues since you have purchased in 2017(not in 2015).

If you have to transfer property tax by yourself then prior dues need to be cleared by the builder because he has not disclosed about the pending dues.

If the problem is solved mutually then it is good, else seek legal help from a local Lawyer.

Moumita Mitra
Advocate, Kolkata
366 Answers
1 Consultation

Dear Client,

In Sale Deed, usual clause is inclined that property is free from all encumbrance, tax, dues etc.

And, in your case, builder intently/pointedly rewind the clause into your liability. And without proper perusal of deed, u executed it.

So, builder acted smart and committed legal cheating. He may be liable for tax liability incurred before 2015.

No options,

Rest show sale deed, might some way come out .

Yogendra Singh Rajawat
Advocate, Jaipur
22991 Answers
31 Consultations

Do not run after the Act.

File the case before the consume forum as advised above . Your problem would be solved.

Devajyoti Barman
Advocate, Kolkata
23220 Answers
514 Consultations

If he doesn't pay you have your legal remedy to approach Court.

Prashant Nayak
Advocate, Mumbai
32479 Answers
201 Consultations

File complaint against builder before consumer forum and seek orders to direct builder to pay arrears of property taxes

2) also seek litigation costs and compensation for mental torture undergone by you

3) it is better that all flat owners come together and collectively file complaint against builder before consumer forum

Ajay Sethi
Advocate, Mumbai
96937 Answers
7821 Consultations

There is no law which specifically says builder will pay the taxes it is a general principal that the liability of the consumer start on day it receives the possession and also it is based on terms and condition mentioned under their sale agreement.

Since in case of your sale agreement the condition is void and contrary, you should file a complaint before the Consumer Court for unfair trade practice and deficiency of service, if there are others also aggrieved file a collective complaint.

You seek recovery of amount along with damages and legal fees against the builder from consumer court.

Shubham Jhajharia
Advocate, Ahmedabad
25514 Answers
179 Consultations

"Property Tax is applicable only after completion certificate is issued by the municipal corporation".

"Owners of residential properties are liable to pay property tax to the required Authority every year."

"Builder is supposed to bear proportionate taxes, till the time flat's possession was not handed over to the owner.

Unless and until builder has specifically excluded this liability in 'agreement to sale', you should ask builder to bear tax for period when flat was not in your possession."

Moumita Mitra
Advocate, Kolkata
366 Answers
1 Consultation

You can file suite under specific relief act and ask the courts direction for builder to pay the property tax amount

Anwar Zaidi
Advocate, Mira Bhayandar
231 Answers

Sir, what should i do in this situation since builder is not responsive, not willing to pay the dues and also not transferring the property tax liability?

Email or phone contacts may not invoke any response from builder's firm, you should write a strong letter to the Builder in this regard and make sure it is sent by registered post with acknowledgment due card.

The builder has to answer and he will certainly answer about this, let him give the reasons for non-payment of property tax priority to your purchase, he can be taken into task accordingly.

Do I need to bare the property taxes which were due since 2015 year, however I purchased flat in August 2017 so why there is injustice with me?

You do not have to bear the taxes which were due prior to your purchase of the property.

Builder also added one clause in sale agreement that the local taxes should be paid by purchaser (irrespective any time purchase) after the date of handing over the first flat to the first purchaser in society, so in that case the first purchaser had given possession in 2015 so does it mean that i do not way to legally fight with builder due to such clauses in an agreement.

This is an arbitral or one sided clause which has no legal validity if challenged.

You dont be taken away reading such invalid and unenforceable clauses.

There is no logic in this clause.

T Kalaiselvan
Advocate, Vellore
87138 Answers
2339 Consultations

I also want to know if there any ACT in Indian law that says that builder should pay all his dues including property taxes etc prior give the possession of the flat, if we do have such law then I do not think Builder with cheat any of the buyer by any chance in Indian history.

The provisions in the transfer of property act law is very clear that the seller has to pay the entire taxes that were due prior to the date of purchase by the buyer in respect of the property being sold by a registered sale deed.

The builder cannot escape any liability in this regard.

You do not have to beg the builder to pay the taxes that were due prior to the date of your purchase.

You can instruct him to pay them or to face the law through both civil court and consumer forum.

T Kalaiselvan
Advocate, Vellore
87138 Answers
2339 Consultations

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