Lease from a chit fund company
Somenath
(Querist) 07 November 2015
This query is : Resolved
I have booked a flat (with unregistered sale agreement) giving 20% of the consideration value from a chit fund company; when the booking was done there was no issues with the company. But after that an embargo has been imposed by government on that company so that they cannot sale any of their properties and hence registration has been barred. Now they want to hand over the flat to me (after taking 80% of total amount) with a 99 yrs unregistered lease agreement (made on a Rs.10/- stamp paper with notary only) with all money receipts and with another document (made on a Rs.10/- stamp paper) declaring that they will register the property once the embargo is revoked. Now my question is if I go through this process and take the possession of the flat then in future if suppose this chit fund company shuts down (C.B.I. has already started investigation on this company) and government seizes all their properties then will those papers (lease agreement etc.) for my flat be invalidated and I can loose the flat as well as all my money?? Or government cannot evict me from the said property as I have a lease agreement and money receipts??
Anirudh
(Expert) 07 November 2015
This is further TRAP for you.
You have already lost your hard earned money because you did not due diligence before entering into the agreement. The 20% which you already paid is more or less a lost money.
Please do not give another 80% - then you will surely be loosing the entire 100% of your hard earned money.
When the Court has already put an embargo, how can the company give possession to you? If they give possession to you (lease for 99 years) that also will come under the embargo. Probably the Company is trying to fool you by saying that embargo is only against registration, not in handing over possession. Possession of immovable property without registration is of no use to you. PLEASE DO NOT FALL INTO THE TRAP.
Rest depends upon your wisdom/decision.
Rajendra K Goyal
(Expert) 07 November 2015
Without registration of 99 years lease agreement on 10/- stamp paper would not be valid / legal document.
The offer of company is not appealing.
P. Venu
(Expert) 07 November 2015
The principle that applies is simple: What cannot be done directly, cannot be done indirectly, too.
Dr J C Vashista
(Expert) 08 November 2015
1. The lease deed for a period of one year and above has to be registered compulsorily in terms of provisions of Registeration Act (Section 17). In this case, unregistered lease for 99 years and without payment of stamp duty as applicable in your state, is illegal and invalid.
2. Embargo put by the government is challangable and liable to be set aside or declared null and void.
3. Before advancing loan the chit fund company must have obtained colletaral security of the flat (documents) and obtained legal advise qua vaibility of the loan/document/flat?
4. Meanwhile donot pay any other (balance) consideration amount, wait and watch the strategy adopted by other vendees.
5. Contact, consult and engage a local prudent lawyer for proper evaluation, analyses, guidance, advise and proceeding in a professional manner.
K.S.Srinivas
(Expert) 12 November 2015
Do not pay the balance 80% of the amount. In the light of the circumstances stated by you in your query, you have lost 20% of the unregistered sale agreement and the flat as well. Do not go further.
