Fraud, cheating in an agreement
Gaurav Nanda
(Querist) 23 June 2009
This query is : Resolved
My mother wanted to buy a portion of a private building in shimla as a flat. The property dealer & the owner of the flat gave a lot of pressure that if u want to buy this flat give some token money at earliest otherwise we will sell this flat to someone else. As a result my mother gave just Rs10000 as a token money or biyana and entered into a written agreement. This token money amount was also entered into written agreement on 19\05\09. NOTE-the total cost of flat was Rs10lakh but only 6lakhs was enter into a written agreement & was suppose to be entered in registry in future. Rs 4 lakh was agreed orally and was suppose to be given under the table in future.
According to written agreement in case we fail to give 6lakh amount by 19\06\09. We were suppose to give Rs20000 and in they fail i.e. they decide to sell it to someone else they were suppose to give Rs20000 to us. The agreement also states that the flat is free from any litigation & mortgage.
The owner of the building is a grandfather and his name is mentioned in agreement, however in agreement where his name is written and where this grandfather was suppose to sign his grandson who is 26 years old signed and received 10000 from us. (Note- I think that his grandson have no attorney power to receive money.)
However after a week we came to know that that this entire building is under mortgage and the registry of the building is hold by the bank. On this his grandson told us that there is no need to panic & that he would get NOC from the bank & further told us to brought 10 lakhs and that its his headache and somehow he will get our flat registered.
However our stand is that whether he can manage to transfer the flat on our name or not whether he can get NOC or not the issue. The issue is his grandfather & the property dealer should have told us earlier, which they did not and also he signed an agreement which says that the flat is free from mortage.
Therefore we are no more interested in buying of the flat (as the agreement was violated from other side.) & we just want our Rs10000 back.
This guy is very clever instead of saying no directly he kept on telling my mother that I will give you money with in 4 on 5 days & somehow managed to stretch it to10\june\09.
Then my mother went to police station to file a complaint. There in police station also he did his earlier drama and this guy said that he is ready to transfer the flat on our name & he will manage to get NOC & registry the flat on our name in case we present Rs10Lakh however our stand in police station was that it is an issue of fraud & cheating & we don’t trust this guy, hence we want our money back.
Upto a certain degree police also was misguided by his drama and the police said that the agreement is valid up to 19\06\09 & we should came after 19\06\09 to lodge a complaint.
Thereafter on 15/6 we also send a notice of lawyer to him which he got on 17/6. Please advice what further action can be taken against him. Did he committed any crime and if yes then what cheating, fraud, not having power of attorney, misrepresentation of facts,etc.... and under which sections he can be booked.
Should we lodge a police complaint or a complaint in court directly? Civil or criminal case or both? His drama is of any legal value or not? Any other advice most welcomed. I know the amount is small but this guy is really troubling us a lot.
A V Vishal
(Expert) 23 June 2009
Dear Nanda
Your cause of action rose on the day you came to know that the property is mortgaged with a bank, a fact which was hidden and further you should have actually verified whether the guy to whom u paid the advance is competent to enter into the agreement. However, I suggest you to file a criminal complaint immediately against this guy for cheating and fraud, further, due to the fact that the agreement was entered by deceit by that person it is null and void. Send a legal notice and file a civil suit for recovery of the money along with interest .
Jayashree Hariharan
(Expert) 24 June 2009
Pls file a private complaint under Ss. 406 & 420 of IPC, and any other relevant provisions, because right from the beginning till date, it has been a case of fraud, misrepresentation, cheating, breach of trust that you had placed on him, etc.
As for civil suit, you can file for recovery of Rs. 10,000/- for that you have to pay court fees and wait for so many months. If you want you can do so.
You can also go to the consumer court for deficiency of service and negligence, for which you will be monetarily compensated.
Civil and consumer case is upto you to decide.
