• My builder wrongfully cancelled my unit due to miscommunication

Hi, I would like to share few details about the case. 

To give a small background, i am a first-time home buyer. For each unit there is a dedicated CRM associated to handle any queries, reminders etc. During these 2 years these CRMs have been changed multiple times. Also I had only 2 demands left to fulfil for completion of my unit and there were certain discounts associated with these demands.

In last week of September 2024, I got the 2nd last demand letter for which I raised the disbursement request via bank online portal but accidentally forgot that there were few adjustments to be made in this demand for which I met my designated CRM for the unit. They acknowledged that they forgot to adjust the discounts and asked me to cancel the existing disbursement and raise a new one after a new demand letter sent. This whole process was completed on November 28. During this process on the reference ticket I asked them about when will it get completed and the new demand letter, they mentioned that it is in progress and will let me know. I was not clarified and left unanswered about the new demand letter, so i assumed that it would automatically be given once the process is completed. Please note that being a first home buyer such questions are quite valid for me and I was expecting clarity about the next steps from builder's end. 
Between November 28 & 22nd December 2024, no one from the group including my so called dedicated CRM either chased me or established any communication with me for the payment reminder. Please note that the previous RM and collection agent used to do so(I have proof of everything). First they said I must have been chased or communicated about the reminders by team, when I showed them all proofs they admitted it person that the miscommunicated at first and not send any reminders while also remained clueless about how to revoke cancellation or if revoked then not give the discount on last disbursement due to their company policy.

I would like to tell that I had no such intention of withholding money from them instead i raised the disbursement correctly at first time, it was me who initiated the process for adjustment when it should have been done by them in the first place and was only waiting to hear from them about the next steps. I feel mentally harassed by this group as it has affected my work and pretty much everything else. Because of such a poor communication and just for the amount of 6 lakh i was served with unit cancellation. Please help me what legal options do i have if they do not agree and cancel my init or not give the promised discounts(12 lakh rupees) on last disbursement.
Asked 26 days ago in Property Law
Religion: Hindu

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10 Answers

Whether you had entered into a sale agreement by a registered deed?

If yes, what are the conditions mentioned in it about the payments to made periodically towards sale consideration amount?

If there is any breach or violation of the conditions of agreement you can take legal action against the developer through consumer redressal commission for compensation for deficiency in service and unfair trade practice.

You may produce the property related papers before a local advocate, discuss about further process and proceed as suggested.

T Kalaiselvan
Advocate, Vellore
87716 Answers
2355 Consultations

You can approach consumer court or rera in above case. It’s better to proceed with consumer court

Prashant Nayak
Advocate, Mumbai
32874 Answers
209 Consultations

Pay the amount of ₹6 lakhs under protest to the builder subsequently file a complaint before the consumer forum against the builder and claim the amount of ₹12 lakhs due and payable to you 

Ajay Sethi
Advocate, Mumbai
97514 Answers
7882 Consultations

Hi,it is advisable to file the complaint before HRERA (Haryana real estate regulatory authority) for restoration of your unit ..Builder cannot cancel the unit in an arbitrary manner when almost 90 percent of the payment has been made by the allotte …Also in the complaint we can seek to enforce our discount offered  by the developer ..You can connect with me over call for further aassistance and guidance over your query .:Regards Advocate Hemant Kumar, Gurgaon 

Hemant Chaudhary
Advocate, Gurgaon
4631 Answers
67 Consultations

Make payment of whatever is due as per your calculation. File a consumer complaint  in District Consumer Commission under new Consumer Protection Act, 2019 with all details of communications explaining necessary facts and defaults by seller. Obtain interim stay against cancellation of unit, District Consumer Commission has power to order such order under Section 38 (8) of new Act. After payment is made as per your calculation, you are entitled to stay order.

Ravi Shinde
Advocate, Hyderabad
4422 Answers
42 Consultations

 

Dear,

Thank you for providing the details regarding your case. Based on the information shared, here is a structured legal analysis and potential options:

Legal Analysis

  1. Breach of Contract by Builder/Developer:

    • The agreement between you and the builder typically governs the terms and conditions related to payments, discounts, and the completion of your unit. If the builder failed to communicate effectively or did not adhere to the terms of the contract (e.g., not providing the promised discounts or failure to issue a demand letter promptly), this may be seen as a breach of contract.
    • The builder's failure to send reminders or clarify the next steps could be considered negligent conduct, especially since you initiated the process and expected transparency.

  2. Mental Harassment and Stress:

    • The lack of proper communication and the delay in disbursement, leading to a unit cancellation, could be interpreted as undue stress or harassment. While this could be challenging to claim in a civil suit, you could seek damages for the emotional distress caused by the situation, especially if you can establish that the builder was negligent in fulfilling their duties.

  3. Unit Cancellation & Non-payment of Discounts:

    • Since the builder has now served a unit cancellation notice based on the delay in payment (even though you had raised the disbursement request and sought clarification), you could potentially challenge this decision if you can establish that it was based on miscommunication.
    • The builder's refusal to honour the promised discounts, especially after you had followed the correct procedure and raised concerns within a reasonable time frame, may also constitute a breach of the terms agreed upon.

Legal Options

  1. Demand Letter and Negotiation:

    • Send a formal legal notice to the builder outlining the breach of contract and demanding that they honour the terms of the agreement, including the promised discounts. The notice should include:

      • A request to reverse the cancellation of the unit.
      • A demand to reinstate the promised discounts.
      • Compensation for any losses or distress caused by the builder's poor communication.


    • Negotiation: If possible, try to engage in mediation or direct negotiations with the builder to resolve the issue amicably, without escalating it further.

  2. Civil Suit for Breach of Contract:

    • If the builder refuses to comply or fails to respond to the notice, you may consider filing a civil suit for breach of contract in the appropriate court. This suit could seek:

      • Specific performance of the contract (i.e., the builder must fulfil their obligations).
      • Compensation for damages incurred due to the breach (including emotional distress).

  3. Consumer Forum Complaint:

    • If the builder’s actions are deemed to be unfair trade practices or deficient services, you may approach the Consumer Forum and file a complaint under the Consumer Protection Act.
    • The forum can provide remedies such as compensation, replacement of the defective service (unit), or a refund. It is a more time-efficient and cost-effective way to address consumer grievances.

  4. Injunction to Prevent Unit Cancellation:

    • If you believe that the builder's actions (unit cancellation and withholding of discounts) are unjustified, you may file for an injunction in the civil court to prevent the builder from cancelling the unit or withholding the promised discounts. The court can issue an interim order to protect your rights while the case is being resolved.

Steps You Can Take

  1. Document Everything:

    • Ensure that all communications, emails, messages, and any proof of delays or miscommunication are well-documented. This will strengthen your case when you approach the builder, a mediator, or the court.

  2. Formal Legal Notice:

    • Draft a detailed legal notice addressed to the builder, laying out all facts, their failure to meet the agreed terms, and the remedy you seek (reinstating the unit and honouring the discounts). This is often the first step in resolving contractual disputes.

  3. Engage with a Lawyer:

    • Engage with a qualified lawyer specializing in real estate law and consumer protection law. A lawyer can guide you through the filing process for a consumer complaint or civil suit and represent your interests effectively.

  4. Court Action (if required):

    • If negotiations and the legal notice do not yield a resolution, you may need to pursue legal action either through the consumer court or a civil court.

Conclusion

You have a valid case for both breach of contract and mental distress due to the poor communication and failure of the builder to honour the terms of your agreement. It is advisable to first send a legal notice demanding the reinstatement of the unit and the discounts, followed by further legal steps if the builder does not comply.

Please feel free to reach out if you need assistance in drafting the legal notice or pursuing further legal actions.

Warm regards,
Advocate Aman Verma
Legal Corridor

Aman Verma
Advocate, Delhi
227 Answers

Dear Client,

 

In your case, the builder’s lack of communication and failure to address their errors constitutes a clear deficiency in service and unfair trade practice. You can send a legal notice demanding the revocation of the unit cancellation and enforcement of the promised discounts, citing their admitted miscommunication and the mental harassment caused. If they fail to comply, you can file a complaint with RERA for non-compliance with their obligations or approach the Consumer Disputes Redressal Commission for redressal, including compensation for mental harassment and enforcement of your rights. Alternatively, you may file a civil suit for specific performance to reinstate your unit and discounts. Preserve all evidence, such as written communication and payment proofs, to strengthen your case. Let me know if you need assistance with the legal process.

Hope that this helps you to solve your problem.

 

Anik Miu
Advocate, Bangalore
10386 Answers
121 Consultations

Pls send them a legal notice to them in the matter, calling upon then to recall the cancellation notice and restore your allotment.

 

Taking the above suggested step should definitely help!

Vibhanshu Srivastava
Advocate, Lucknow
9690 Answers
312 Consultations

Legal Options for Your Case:

  1. Send a Legal Notice:

    • Demand unit reinstatement and honor of the ₹12 lakh discount.
    • Highlight the builder's failure in communication and reminders, leading to unjust cancellation.

  2. File a RERA Complaint:

    • File under Section 31 of RERA for wrongful cancellation and seek reinstatement of the unit with the agreed discounts.

  3. Consumer Forum Complaint:

    • File for deficiency in service, mental harassment, and financial loss. Request compensation.

  4. Negotiate with Builder:

    • Present proof of communication, disbursement attempts, and their acknowledgment of errors to reach an amicable resolution.

Supporting Documents:

  • Emails, CRM communication, and proof of disbursement requests.
  • Demand letters and evidence of prior payments.

Likely Outcomes:

  • Unit reinstated and discounts honored.
  • Compensation for mental harassment if pursued in Consumer Forum.

Act promptly by consulting a real estate lawyer for drafting the notice or filing the complaint.

For detailed, personalized advice, consider a phone consultancy. Hope you find the information helpful. You are free to contact me for further discussion. If you could spare two minutes of your time to write a review, it would be greatly appreciated and bring immense happiness to read it. Thank you. Shubham Goyal.

Shubham Goyal
Advocate, Delhi
526 Answers
1 Consultation

I understand your distressing situation. You've been wrongfully penalized due to miscommunication and lack of clarity from the builder's side. Here are your legal options:

 

# Legal Options

1. *File a Consumer Complaint*: Approach the Consumer Disputes Redressal Forum (CDRF) or the National Consumer Disputes Redressal Commission (NCDRC) to file a complaint against the builder. You can claim compensation for mental harassment, refund of the amount paid, and completion of the unit as per the original agreement.

2. *Send a Legal Notice*: Serve a legal notice to the builder, highlighting the miscommunication, lack of reminders, and wrongful cancellation of your unit. Demand revocation of the cancellation and completion of the unit as per the original agreement.

3. *File a Suit for Specific Performance*: If the builder refuses to revoke the cancellation, file a suit for specific performance in a civil court. This suit will compel the builder to complete the unit as per the original agreement.

4. *Claim Damages*: In addition to seeking specific performance, you can also claim damages for mental harassment, loss of reputation, and other consequential losses.

 

# Essential Documents

1. *Communication Records*: Gather all communication records, including emails, messages, and phone call records, to demonstrate the miscommunication and lack of reminders from the builder's side.

2. *Payment Records*: Collect all payment records, including receipts and bank statements, to show that you had made the necessary payments and were not intentionally withholding payment.

3. *Agreement and Brochure*: Keep a copy of the original agreement, brochure, and any other promotional materials to demonstrate the builder's obligations and promises.

4. *Proof of Mental Harassment*: Document any evidence of mental harassment, such as medical records, counseling sessions, or witness statements.

 

# Next Steps

1. *Consult a Lawyer*: Engage a lawyer who specializes in consumer law, real estate, and contract law to guide you through the process.

2. *Gather Evidence*: Collect all relevant documents and evidence to support your case.

3. *Send a Legal Notice*: Serve a legal notice to the builder, demanding revocation of the cancellation and completion of the unit as per the original agreement.

4. *Prepare for Litigation*: Be prepared to file a consumer complaint or a suit for specific performance if the builder refuses to revoke the cancellation.

 

If you want more help kindly contact me

For legal notice drop mail ([deleted])

Adv.Lavish Tegta (High court of himachal pradesh)

 

Lavish Tegta
Advocate, Shimla
12 Answers

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