Dear Lawyers,
I have attended a property fare 2 years back where a Europian model township was advertised at Bangalore outskirts. The property marketing was handled by Bangalore's one of the well known company Orange Properties along with a new developer called Granity properties.
At the property mela both orange and Granity claimed that they have clearance from Govt and the land has got NOC from Govt for developing it. After initial discussions I have (Around 400 similar investors) registered for a 30x40 site at the Township. For this I have paid a registration amount of 3.5lakhs. Granity properties executed an agreement with totally 17 clauses and following clauses are mojor ones.
4. That both the parties have agreed that the registration shall be completed within the period of nine months from the date of this agreement.
5. That the fist party (Developer) assures that the second party(Investor) that they shall furnish the copies of the document and the approvals of the schedule - A land within a period of Three months from the date of this agreement (Agreement was made on 26.07.2008)
6. The first party assures the second party that all the developments according to the specifications of the BDA shall be completed within 12 months from the date of signing the agreement.
7. Further in the event of the first party failing to obtain th enecessary approvals from the BDA within the above mentioned period, the first party shall refund the entire amount by the purchaser alng with an interest of 12%.
8. 25% of total sale consideration in respect of the schedule B property will be forfrited in the event of the purchaser coluntarily recinding the agreement before the registration of the schedule B property
9. That the first party hereby assures the secondparty that the schedule properties exclusively belongs to them and that nobody had has manner of right, title, interest or claims whatsoever in or over the schedule properties or any portion thereof
10. That the first party also assures the second party that the schedule A property is not subjected to any litigation, court attachments, decreees, maintainance charges, minor claims, security claims, tenancy rights and any other proceedings whatsoever and thus the entire schedule properties and every portion thereof is free from all kinds of encumbrances.
15. That notwithstanding anything contained herein, if either of the parties commits breach of the terms of this agreement and fails to complete the sale of the schedule B property, the aggrieved party is at liberty to enforce this agreement of sale for specific performance in the court of law.
In the above clauses, neither Granity nor Orange properties have met one of them. I visited their office after 3 months to collect the documents, for my shock, Granity properties was closed. In panic I visited Orange and they told me to wait for some more time.
After 9 months I visited Orange properties (Granity office is still closed) to get the updates regarding the registration date. They told me that Orange do not have any stake in this business and asked me to contact Granity which is not there at all. The same story has been told to all investors(~400, around 20 crore is involved)
We approached respective police stations and after a lot of effort we could file cases against Orange and Granity. This was published in all leading news papers and TV channels. At Police stations we were adviced to submit only few cases and they accepted only few complaints saying that is enough as it is same complaints.
Court gave verdict saying those who have submitted complaints can either take site or get the money back, for others they have to take site by paying rest of the amount. In between Granity and orange approached court saying the land in subject is under litigation so they will provide the sites some where else. Court agreed for that too :(
Now court has again given 4 months time for Orange and Granity to develop new land and start the registration process. Those whoes FIRs are taken by police stations can take money back others should get the land registered by paying rest of the money.
Please advice how to get out of this mess. The money I have invested is my 3 years of effort. I don't have any other alternate.
Your help will be much appreciated and saves hundreds of families. I loosing hopes in the complete system.
Sagar
