Dispute in paying back room deposit due to demonitization of indian currency.
Mohammed Vaid
(Querist) 15 November 2016
This query is : Resolved
Hello Sir,
I have taken a flat on Leave and License basis in which it was agreed between me and flat owner that I would pay Flat Owner 15 lacs Indian Rupees as Heavy Deposit, against which he would allow us to leave in his flat without any rent.
We did paper work but unfortunately stamp of Rs. 10 is affixed.
Now due to demonitization of 500 and 1000 rupees notes, the Flat Owner called me up and said that he is returning my 15 lacs Indian Rupees in defunct 500 and 1000 rupees notes. He further says that he wont be paying me in new legal currency at the end of my agreement period in April 2017. He stays in London, so we called him explaining the situation but he is adamant to this. We did telephone recording of call.
Can anyone please advice what should I do? I will be of nowhere if he dominates. He is a very powerful and rich man and saying that he would easily win case in court of law.
adv.bharat @ PUNE
(Expert) 15 November 2016
When u registered it?
From mid night 8/11/2016 all denomination is take place.
Before this or after this u made rent agreement.
Rajendra K Goyal
(Expert) 15 November 2016
If the money is from proper accounted system / legal system, you can deposit it in Bank account.
Refer news items on the subject in various news papers.
Your dispute / legal steps would turn whole amount into piece of papers if steps not taken immediately.
Mohammed Vaid
(Querist) 15 November 2016
We entered into agreement some 10 months back.
Mohammed Vaid
(Querist) 15 November 2016
Also proper source of money is not accounted.
Mohammed Vaid
(Querist) 15 November 2016
Taken loans from relatives and friends. And also rented out my previous home on heavy deposit.
Kumar Doab
(Expert) 15 November 2016
"He further says that he wont be paying me in new legal currency at the end of my agreement period in April 2017"
The currency by that time would be invalid.
It may not be worth the paper.
He can't force you to accept worthless currency.
Rajendra K Goyal
(Expert) 15 November 2016
If you have agreement, he can not pay you in any illegal tender currency.
Sudhir Kumar, Advocate
(Expert) 16 November 2016
when you paid him it was a valid legal currency though the source was not clear.
If agreement fails on your side he can forfeit the deposit (if provided in agreement) and if he refunds he has to refund in the currency preventable at the time of refund.
or
accept cheque.
Guest
(Expert) 16 November 2016
Dear Mohammed Vaid,
Due to insufficient stamp duty, the agreement is invalid. There would be no sense of getting money back with old and illegal currency in April 2017.
By the way, did you pay the huge money of 15 lacs in cash? If yes, the reason therefor?
Mohammed Vaid
(Querist) 16 November 2016
Yes sir,the amount was paid in cash
Mohammed Vaid
(Querist) 16 November 2016
Yes sir,the amount was paid in cash
P. Venu
(Expert) 16 November 2016
You can certainly demand the money back through a valid tender. He cannot insist to the contrary.
Kumar Doab
(Expert) 16 November 2016
Agreed with Mr. P.Venu.
You have posted that:
"He stays in London, so we called him explaining the situation but he is adamant to this. We did telephone recording of call."
He is in London.
During demonetization; There is influx of queries including that NRI/PIO/OIC etc etc want to bring huge amounts of cash thru visitors, by themselves.................
The query has been addressed and it was concluded that more than Rs.25000/ can not be brought in on persona.
RBI has issued guidelines for transaction thru banking Channels.
Your own local counsel can advise you in person on contents of call recordings and action that you can probably take...............
In the meantime contemplate on proof of source of funds.................Your own consultant specializing in Income Tax related matters can guide you further, with rule position.
Hemant Agarwal
(Expert) 16 November 2016
SIMPLE SOLUTION:
1. DO NOT vacate the Flat till the said Deposit is received in legitimate money or Pounds or Gold or Diamonds. The L&L agreement is null and void but can be used for filing further civil proceedings restraining the Flat-Owner from taking possession for various grounds. Obtain Stay Order and then the Flat-Owner, irrespective of him being powerful or whatever, will come down to his knees IF he requires back his Flat, since he will be losing out on the L&L rent till the matter is resolved in the Civil Court.
2. Lawfully, upto 30th December-2016, even present currency can be taken and deposited in divided parts between 6-7 relative /friend persons bank accounts, without any Tax issues.
Keep Smiling .... Hemant Agarwal
VISIT: http://www.maharashtra-society-help-forum.com
Guest
(Expert) 16 November 2016
I partly agree with the solution of Shri P. Venu, provided you have a valid money receipt granted by the flat owner. Otherwise, all your efforts can go in vain, as no simple solution is there for you to recover money, if paid in cash and not having a proper money receipt or not made any mention in the agreement.
Kumar Doab
(Expert) 16 November 2016
You have already posted;
"I have taken a flat on Leave and License basis in which it was agreed between me and flat owner that I would pay Flat Owner 15 lacs Indian Rupees as Heavy Deposit, against which he would allow us to leave in his flat without any rent.
'
Here you have clearly posted:;::: 'in which it was agreed between me and flat owner'.................
Rest the OP's seems to harping upon your fear of unaccounted money by shrude dialogue that he had with you.
I have already posed with my limited understanding. Hope you can read between the lines.
LCI Expert Mr. Hemant Agarwal is from Mumbai, and has discussed another perspective.
You can approach him and discuss in person all possible options.
Assuming for a moment: that there is loss then assume the collateral damage that he might have otherwise also thought of................
Rajendra K Goyal
(Expert) 16 November 2016
Agreement can be validated by paying penalty on deficit stamp fee.
It would take long time to recover this huge amount.
Try to have amicable settlement and act fast so that deadline for changing notes is not over.
Sudhir Kumar, Advocate
(Expert) 18 November 2016
I amount in a position to agree with the idea of depositing money in the bank accounts of friends and relatives. Govt already has a plan to deal with such frauds.
You can do so if you are interested in making your friends and relatives a victim. IT Deptt will have a license to harass them. They can allege such amount as their income and also allege hiding such huge income in past years and can re-open their past assessment for past period and make inflated demands beyond proportion (may be more than the amount which you put in their account).
Kumar Doab
(Expert) 18 November 2016
Another Perspective:
Instead of 2017 collect your money now and vacate the flat.
Happy ending.
Or as suitable to you.
J K Agrawal
(Expert) 09 February 2017
The 'answer' is given by Mr P venu only.
P. Venu
(Expert) 10 February 2017
Thanks, Learned Expert Shri J K.Agarwal.
Kumar Doab
(Expert) 10 February 2017
Appreciations to Mr. J.K.Agrawal, appreciating fellow expert Mr. P. Venu.
Kumar Doab
(Expert) 10 February 2017
Thanks to Mr. P.Venu for concluding the thread.
