Builder is threatening me of cancellation of “agreement to sell” after giving possession of flat.
Atul
(Querist) 02 March 2013
This query is : Resolved
Hi All,
I am in unique situation here.
My builder is threatening me of Cancellation of “Agreement to Sell” after giving possession of flat.
I booked flat in Nov 2009 in Pune got possession in March 2011.
I have paid all dues to builder and so builder provided occupation certificate given by municipal corporation along with possession letter. Possession letter clearly states that there are no dues from my side.
After some months recently there was VAT issue came where government demanded 5% VAT from builders.
So builder started notice to all residents for VAT recovery.
We as a group decided not to pay a single penny as VAT to builder as government demanded this VAT to builder and not to end customer. Remember we all have our possession of flat along with legal possession letters and we are staying in these apartments.
Society is formed and all the residents are members of the housing society however Sale Deed is not yet executed.
So builder tried loads of tricks including “I will send sales tax people to your home to collect the money” on all members so that they will pay him VAT money he had paid to government however no one responded him with his expected results.
Now he have started playing new tricks. He is calling all the members and threatening them with Cancellation of Agreement to Sell on the VAT ground.
I understand that he may go to court and file a case against the people who are not responding him for VAT notices however I was wondering if he has authority to cancel the “agreement to sale” post possession of flats where possession letter clearly mentioned that there are no dues and so he is giving possession.
Your valuable inputs are highly appreciable to me and 1000s like me who are going through same pain
Thanks & regards,
Atul
ajay sethi
(Expert) 02 March 2013
he cant cancel the agreement but he can take recovery procedings to recover VAT amount . there must be a clause in the agreement regarding taxes if any demanded shal;l be paid by purchaser .
ask builder for detailed break up as to how VAt amount has been determined
Raj Kumar Makkad
(Expert) 02 March 2013
Value Added Tax though is to be paid in the name of the builder but the same is a liability of the allottees so it is better to settle the issue and get the registered sale-deeds in your name as earliest as possible without inviting problem from both sides. It is sure that agreement cannot be cancelled but definitely similar problems may be created by builder till the matter is resolved for ever.
