• Builder is delaying BBA for a food court space and asking for a GPA for leasing of space with brands

I have booked a food court space Noida Ext (UP) in a under construction mall cum high street market (Saya SouthX) with one of the renowned builder of NCR but they are delaying the BBA as I disagree with certain clauses of it. It has already gone almost 3 months of me chasing with them for which I have written several email communications but they are still not correcting the BBA and asking for more time and not even replying on emails. I discussed with their legal and seniors but they are forcing us to pay and Sign the current BBA as is. I have paid them a sum close to 8 lakhs by crossed cheque as per the payment plan for which I have original receipts as it was required for 30% threshold of self funding required by bank. Loan is sanctioned on my name but yet not disbursed as now the BBA is yet not signed. I have refused to accept honoring any current and further demands payable by me and forcing them to sign the BBA first to them in a written email to them.

I have their stamped copies of the costing sheet with payment plan, scan copies of demands raised with a due date before the demand generation date and its receipts. I have been chasing them for the BBA and correct demand but they seems not interested to address it promptly and I think I might need to take up the issue with UP RERA or consumer court for getting my money refunded along with compensation although I am more interested to retain the property as its one of the upcoming area in NCR.

Disagreements in the BBA -

1. Promoter group is reserving 1 leasing rights with them for forever but sales team had conveyed it will be for first 9 years only during the negotiations and also has put up a clause that I will have to bear the cost of maintenance and other applicable charges for the shop in case it stays vacant irrespective the fact that promotor will have the 1st leasing rights. I does not agree with it as the 1st leasing rights( that too should be for only 9 years) with them and so its their responsibility to maintain the premises. Also the BBA mentions that I will have to seek their written permission in case I want to lease out to someone if I get a better rate or for self use. 

2. Promotor group wants me to sign a separate agreement for registering the BBA at my cost and also asking me to sign a fresh BBA again and again with them whenever they demand. This also looks against my interests and I am not agreeing to it. 

3. They are also seeking me to provide them with a GPA for leasing the commercial space with brands but I disagree with it as it will decrease my rights on the property and even can cause loss of the property and money to me.

Kindly advice. I discussed these points in meeting but when i put that in an email, he termed it as a unilateral interpretation of the clauses & discussion and not replying on email when asked for solution in a written email.
Asked 3 years ago in Property Law
Religion: Hindu

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7 Answers

Issue legal notice to builder to change clauses in BBA not agreed by you 

 

2) if changes are not acceptable to builder to refund your money 

 

3) if builder refuses to refund your money file complaint against builder before RERA and seek orders to direct builder to refund your money with interest 

Ajay Sethi
Advocate, Mumbai
97613 Answers
7902 Consultations

-  As per Sub-Section 1 of Section 13 of The Real Estate (Regulation and Development Act,), A builder will have to enter into an agreement to Sell with a home buyer, and then accept the booking amount which should not be more than 10%. 

- Hence the builder cannot demand more payment at the time of sale agreement , and further the builder is bond with the contents of the agreement. 

- Further, he cannot force you to enter into a new agreement with revised conditions , it amounts to deficient of services on the part of the builder. 

- You can issue a legal notice before filing a compliant against him and thereby ask to refund the entire amount paid by you with 10 percent interest .

- If no response, then lodge your compliant before the RERA against him. 

Mohammed Shahzad
Advocate, Delhi
14778 Answers
225 Consultations

You are entitled for refund of GST in case of cancellation of booking 

 

builder to return the money collected from the buyers within 45 days of such cancellation after deducting the booking amount. The booking amount shall be forfeited by the developer.

Ajay Sethi
Advocate, Mumbai
97613 Answers
7902 Consultations

- Yes, you can claim refund of entire amount paid by you with the GST  in case of cancellation 

- Further you can also claim interest as well , if the booking is cancelled due to the fault of builder. 

Mohammed Shahzad
Advocate, Delhi
14778 Answers
225 Consultations

If the agreement is not conducive and appears to be improper and agaisnt your interest, you may better insist on the changes with flexible terms which would be favorable to both the sides particularly which is not affecting your interests.

Instead of repeatedly communicating to them through emails, you may better adopt to writing to them and send it by registered post communicating your decision to cancel the agreement and demand them  to return the booking amount since they are not cooperating and the conditions set out therein are not acceptable to you. Subsequently you may either approach consumer commission or civil court for recovery of your amount.

T Kalaiselvan
Advocate, Vellore
87815 Answers
2365 Consultations

If the deal fails and there is no agreement in existence he is liable to pay the enire amount including the GST charged by him. You can demand the entire amount with interest becasue it is the fault of the builder and not yours. 

T Kalaiselvan
Advocate, Vellore
87815 Answers
2365 Consultations

Dear sir,

1. you can issue a legal notice for either change in the clauses in BBA or seek a refund

2. If the legal notice is not complied , then you can approach the RERA office and seek orders from authority for your refund

3. Yes u can ask for a refund of GST as the booking is cancelled. since it is due to the fault of the builder, you can seek interest as well. Such refund is to be made within 45 days.

thank you

Anik Miu
Advocate, Bangalore
10427 Answers
121 Consultations

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