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sanjeev saxena (Faculty)     10 July 2013

Unregistered agreement to sale

My friend went into agreement, which was unregistered for purchase of a society flat in ghaziabad, Uttar Pradesh. The date of mentioned in the agreement has elapsed. Now he has received a show cause notice from the collectorate department / DM's office for the recovery of an amount to the tune of Rs. 1.5L. The agreement could not be executed as he could not manage to garner the funds for the purchase of flat and as such this agreement stands cancelled.

My query is 

what will happen if he sits silent on this notice received from the DM's office / collector's ofice as the execution of the agreement has not taken place due to non arrangement of funds?

is he still liable to pay the recovery amount of 1.5L even though he has not purchased the flat?

how will this issue be settled?

pls. reply asap



Learning

 1 Replies

Advocate Rohit (Advocate)     10 July 2013

your friend needs to write to the collector office about non-happening of the transactions and cancellation of the deal. Thus, he wouldn't be liable to pay the stamp duty and registration charges for the said agreement.

 

Regards,

Advocate Rohit Dalmia

9324538481


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