Development agreement and adjudication
Harish Kumar (Kalyan)
(Querist) 16 February 2020
This query is : Resolved
Respected Experts,
Currently we are in process of redevelopment of our property (KDMC municipal limits). This is not co-operative housing society. We are 6 members staying in apartment. We approach developer, and confirmed mutual agreed development draft. And he moved forward for adjudication process and stamp duty payment.
However when we received adjudicated copy, it's found that it's not matching with our agreement. Also some of members name are not correct in challan copy and order received from collectors of stamps office. Also some major mistakes are there like no proper mention of area to be given post redevelopment etc.
Now we have been asked to go ahead with registration process as changes can not be made in adjudicated copy.
Is this correct ? Can developer not go back and make corrections in adjudicated copy ?
Any suggestions will be extremely helpful.
Thank you.
Raj Kumar Makkad
(Expert) 16 February 2020
The reply of developer is incorrect. A mistake can be rectified at any stage when it comes to the knowledge of either of the parties and this is the best period when before registration, the mistakes can be got corrected.
adv.bharat @ PUNE
(Expert) 17 February 2020
Dear you need to make the necessary correction before the registration process only. Mistake can be corrected at this stage only.
Hemant Agarwal
(Expert) 17 February 2020
1. File REVISED copy of DA for proper adjudication, since adjudication process can be done several times, before final registration.
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2. BEFORE you do the above, have the DA properly scrutinized by a experienced lawyer.
3. Such things happen, WHEN services of lawyers for such jobs are found to be expensive, by penny-pincher property owners and then builder takes undue advantage of the same.
Keep Smiling .... Hemant Agarwal
VISIT: www.chshelpforum.com
Harish Kumar (Kalyan)
(Querist) 17 February 2020
Thank you Hemant Sir.
Further to this we received strong push by developer/his legal aid saying doing adjudication again is not viable financially (reason : they need to pay stamp duty again) and it will be time consuming too. Alternative suggested is go ahead with registration, and they will assist us in doing something called rectification deed (not sure what is this). And with that, all changes/corrections can be done in rectification deed, and they are saying that rectification deed is also equivalent to development agreement.
Respected Raj/adv.bharat/Hemant Sir/other experts - It will be of great help to receive your valuable inputs
Thanking you.
Hemant Agarwal
(Expert) 17 February 2020
1. Stamp Duty paid earlier will be set off against the Revised DA, hence there is no loss. Yes, a subsequently a "rectification deed" can also be executed, without changing the monetary structure of the DA (not advisable).
2. After executing DA, the residents shall have no option but to accept the DA in toto, that is IF the developer fails /refuses to execute a Rectification Deed (which as it is done for minor changes /inadvertent mistakes /clerical errors) /.... )
Keep Smiling .... Hemant Agarwal
VISIT: www.chshelpforum.com
Harish Kumar (Kalyan)
(Querist) 17 February 2020
Thank you so much Hemant Sir.
This really helps. And in fact gives more clarity as even our legal aid also pushed us for rectification deed rather than re-adjudication/OR getting correction done in adjudicated copy.
Thank you
Harish Kumar (Kalyan)
(Querist) 17 February 2020
Respected experts,
It will be of great help to get your valuable inputs/comments for following points
1. As mentioned above, in case if developer refused to accept rectification deed, can we make changes in adjudicated draft manually (hand written corrections) ? OR will this have impact on validity/authenticity of adjudicated draft and possible rejection of document at sub resistor office ?
2. In case, if developer threatens to pull off project, do we need to bear/worry of stamp duty payment expenses ? Can we be held liable for that payment ?
Thank you.
kavksatyanarayana
(Expert) 17 February 2020
A rectification deed is a must. And it is better that the developer and you (all members) may execute it.
Harish Kumar (Kalyan)
(Querist) 17 February 2020
Thank you sir, however it will be helpful to get comment for point 2 in above post
Raj Kumar Makkad
(Expert) 17 February 2020
1. You can definitely make correction in the draft manually.
2. No. You are not liable for the stamp duty as it is the duty of the developer to bear it and moreover, you are not backing out of the agreement so why to be held liable even if developer decides to pull out.
Raj Kumar Makkad
(Expert) 17 February 2020
Additionally- you need to engage a lawyer dealing in with property laws otherwise may suffer at one or the other step as developer generally do have strong legal association with them and it is beneficial to counter the same for the safeguarding of own interest.
Dr J C Vashista
(Expert) 18 February 2020
You must refuse to sign / execute the MoU in such circumstances.
It is advisable to consult and engage a local prudent lawyer for appreciation of facts/ documents, professional guidance and necessary proceeding.
Harish Kumar (Kalyan)
(Querist) 18 February 2020
Thank you Raj Sir / Vashista Sir and all other respected experts for your valuable feedback/inputs/comments.
No doubt, receiving such expertise in almost real time has helped us a lot.
Big thanks to this community/platform too.
Raj Kumar Makkad
(Expert) 18 February 2020
Mr. Harish! You are always welcome. We feel proud to help the needy persons.
T. Kalaiselvan, Advocate
(Expert) 22 February 2020
The developer cannot refuse to make rectifications in the agreement. You can issue a legal notice to the developer to carry out the corrections in the agreement as per the originally agreed conditions.
The developer is obliged to carry out the corrections because it is his fault for not incorporating the correct particulars of the members and also to furnish false information in the agreement which has been adjudicated.
T. Kalaiselvan, Advocate
(Expert) 22 February 2020
If the developer is not cooperating or refusing to carry ouyt the corrections and get a fresh agreement adjudicated then you can drag him to court of law with a suit for mandatory injunction against him for this purpose or you can even drag him to consumer forum for unfair trade practice seeking proper compensation and desired reliefs.
You may be in touch with your advocate also on this.
