ALLEGED DUPING, HOODWINKING, BREACH OF TRUST, “CHEATING” and “FRAUD” by M/s. Vatika Ltd. Gurgaon by misleading, overawing and bullying the buyers.

[Mahendra Kumar Gupta]

AN ALERT - CHOOSE YOUR BUILDER AFTER DUE DELIGENCE.

JAAGO GRAHAK JAAGO.

READ THIS,                    SAVE THIS,                             CIRCULATE THIS         

Email this to the Principal Secretary/Dir. General, Town  & Country Planning, Haryana on email id <tcp...@gmail.com> for his information and necessary action.

Notes:  

1.  Before posting this here, e-mail was sent to CRM and Chairman, M.D. Director and CRM of Vatika on 19.9.2014 for comments, reminder sent on 24.9.14 but no comments were received till now. (7.30  a.m. of 27.9.14).

2.  In trying to keep this short, many cases have not been mentioned here.

                         NCR PROPERTY BUYERS’ ASSOCIATION

                       Mobile: 9810478972, Email: ncr...@gmail.com, 

                       FB Page: NCR Property Buyers' Association, Delhi.

EMAIL

 

Shri T.C. Gupta, Principal Secretary,

Deptt. of Town & Country Planning, Haryana,

SCO-71-75, Sec-17 C, Chandigarh.

                                                                                    Date: 25.9.2014. 

 

Sub: ALLEGED DUPING, HOODWINKING, BREACH OF TRUST, “CHEATING” and “FRAUD” by M/s. Vatika Ltd. Gurgaon by misleading, overawing and bullying the buyers.

 

Dear Sir,

 

1.       Vatika Ltd. is developing plots and constructing flats in the name of Vatika India Next in Sector 82, 82A, 83, 84 and 85 in Gurgaon.  These projects are in the revenue estate of village Sihi, Sikanderpur, Badha and Sikhohpur in accordance with the License No. 113 of 2008, 71 of 2010, 62 of 2011 and 76 of 2011 granted by the DG, Town & Country Planning, Haryana. Though it has not been granted any CC/OC, yet the company is forcing the buyers to take possession which is against the rules of your Deptt.  In case of failure to take the possession, Company is threatening the buyers even to cancel their bookings and forfeit the earnest money, imposition of holding charges. Many buyers had to take possession without OC and use certificate due to arm-twisting tactics of the Company. Mr. Nishant Nayan, Sr. Executive for this project said in reply to the buyers’ queries on CC/OC, “we do have all requisite approvals to initiate handing over process. All documentary requirements are developer’s liability and hence we always ensure complete compliance to the same”. Even Vatika is abetting the buyers to violate the law by forcing them to take the possession without CC/OC.  Company is also bullying the buyers by saying that it will forfeit their earnest money, imposing holding charges, penalty etc. in case of failure to take possession.

 

2.        That on 19th, the Times of India published a story under heading “No occupation papers but forced to take flat”, and the same can viewed on the link, http://timesofindia.indiatimes.com/City/Gurgaon/No-occupation-papers-but-forced-to-take-flat/articleshow/40384674.cms.

 

3.        That before giving possession, the Company is not allowing visit to the unit falsely citing the security reasons. On the other hand, Company claims that many persons have started living there after taking the possession and forcing others to take the possession.  If the unit is ready for possession, one fails to understand about the prospect of such a big danger. Danger may be only if the construction work is going on. It appears that the Company has something thing to hide from the buyers.  Buyers are the stack-holders as the flats are being constructed with their money and they have the rights to inspect the ongoing construction at any reasonable time, can check the quality of the material being used and inspect the flat before taking possession.    

 

4.        That it is also intimidating the buyers stating that if they will not take possession within three month, they will also be liable to pay maintenance charges/ holding charges etc. The Company has intimidated Shri Dharmendra Gupta who insisted for the copy of CC/OC etc. saying that if he will not make the final payment for taking possession, his booking will be cancelled.

 

5.        Though no maintenance charges can be taken by the colonizer till the possession is offered legally but the Vatika Ltd. is demanding the maintenance charges from the buyer by giving them possession in an illegal manner i.e. without CC/OC.

 

6.        That the Company is even demanding maintenance charges for the common area, open area, maintenance services, watch and ward staff of the colony etc. even before taking over possession by the buyers.

 

7.        That the builder promised to complete and hand-over the possession of flats and plots in Sector 81 to 85 within three years but instead, after 5-6 years, buyers are waiting to get possession in a legal manner.  The builder is not giving any compensation to any buyer despite the decision dated 22.7.14 of National Consumer Redressal Forum in the case of Shri Rajneesh Aggarwal v/s. Vatika Ltd. In the one-sided agreement, builder has written that time is essence in respect of buyers obligation to pay in time but has absolved himself from such an obligation. This is against the decision of the Competition Commission of India in the case of DLF against one-sided BBA.

 

8.        That Vatika Ltd. is also forcing the buyers to sign an indemnity cum declaration Bond which says that if in future, anything is imposed on the builder by any authority, the same will be payable by the buyers. Thus the buyers will be liable to pay even if something is imposed on the builder for his own fault/ lapse. There are many other objectionable clauses in this indemnity cum declaration which takes away the legal rights of the buyers.  It is strange that the builder is asking the buyers to indemnify but is keeping himself free from any obligation.  I am enclosing most objectionable clauses (clause No, 2, 10 and 11) and the objection.

 

9.     Moreover, there are over thousands of units in this township yet Company is delaying the registration process and thus, the Haryana govt. is being deprived the revenue which it will be generating by way of stamp duty. Mr. Nishant Nayan, Sr. Executive, Vatika India Next is writing to the buyers, “As of now we have not yet started the registry process. Once we start the registry process, we will intimate you accordingly. It will tentatively take 5-6 months”. As per Registration Act, 1908, property should be registered within a period of four months from the date of its execution.  On the contrary, the fact is that without CC/OC, no unit can be registered and buyers wonder how the builder will be able to get the property registered within this period. The huge amount being charged from the buyers for the registration and paying the stamp duty will be utilized by the builder till the property it registered. The builder should be directed to charge this amount short while ago when it plans to go for the registration of property process or give interest to the buyers on this amount or give reasonable interest on this amount till it is used.

Booked Flat without owning Land:

 

10.     a buyer has alleged that the company has booked flats in sector 82 without possessing the land or licence.  One such flat was on plot number 30, SF floor, Sector 82 in street No. E-7, E Block, Gurgaon was sold to Mr. Deepak Sharma who later-on sold this to other innocent buyers Parveen Yadav. On coming to know this, when he raised objection, he was relocated.

11.     As per rules of the Deptt. of Town & Country Planning and Haryana Apartment Act, no builder can book/sell any flat or plot without having the licence.  We suspect that the Company has also booked flats to so many hapless and innocent buyers and has taken hefty amount from them as advance. Contrary to this, Vatika Ltd. has booked flats in Sector 99, village Kherki Majra in the scheme named “Soverign Park” for which licence has been granted to Planet Earth Private Ltd.  It took 26.40 lakh from Shri Raj Kumar Goyal and when he came about this fact, Company returned the amount to him but without any interest, shockingly after making some deductions.

12.     Two buyers have alleged that the builder has sold two plots (TWN-003/15/J-10/83J/240/SECTOR 83 and TWN-003/15/J-10/83J/240/ and of TWN-003/17/J-10/83J/240/ to Ms. Nandani Pratap Singh and a plot to Mr. Vipin Madan in Vatika India Next, Sector 83 Gurgaon and High Tension line is passing over these plots.  Both have alleged that Vatika Ltd. has rejected their demand for sharing the lay-out plan with high tension line.

13.     Another buyer, Shri Suraj Saha (name mentioned in the complaint to DT&CP) initially a flat on Plot No. **, *th Court, Sector 82 -B in Gurgaon in Sept. 2009 but he says that even today foundation work has not been started. He has already paid over Rs. 16 lakh. Recently, demand for over Rs. 3 lakh was also sent to him saying that milestone has been achieved but he was not allowed to see his flat on this Sunday i.e. 14.9.14. When he asked about the proof and sent email frequently, Mrs. Niketa Singh, an official of the Company withdrew the demand.  Mr. Surender Singh Ahuja (Name changed- real name mentioned in complaint to DT&CP) has also alleged that the Company has charged the installment from him on account of completion of foundation work though no foundation has been dug.  Saha further alleges that, in addition, the Company has raised the demand by 10% on account of extra area but no area has been increased.  Now, balcony has also been included in the built up area though in the agreement, it is not included. Vatika is not giving any penalty on flimsy ground though, as per agreement and decision of National Forum in the case of Rajneesh Aggarwal, it is liable to give the penalty for delay.

14.     Mr. Neeraj Surana booked flat No.A-6, 202 Vatika City Home, Sector 83 in July 2008, Vatika promised to give him possession in three years but till date, company has not offered him possession.  During this period, changed his flat on its own, increased area by 19% and is forcing him to buy 4% of increased area at the market rate rather than at the booking rate.  Company is adding penalty with every demand though the delay was on its part. On protest, waived penalty but in the last demand, has again added heavy interest penalty.  Even without giving the date of possession, has raised the final demand. 

On Licence No. 94 of 2013 for Sector 88A, 88B and 89 on Dwarka Express Way.

15.     Vatika is also duping and hoodwinking the buyers by publishing the misleading advt. for Vatika Express City (XPC) in Sector 88A, 88B and 89A at Gurgaon Manesar Urban Complex. A local resident says that at the time when the company applied for the licence, only three High Tension lines of 400, 220 and 66 KV are passing over this area but by the time of grant of license and approval of lay-out plan, fourth overhead HT line of 400 KVA was laid.  He says that as per rules, no plot can be carved-out in the Right-of-Way (ROW) of HT line.  Despite this, the Company is not disclosing these facts to the buyers. The approved lay-out plan is with 21 conditions and condition No. 4 says that HT lines shall have to be suitably aligned or right of way along the same shall be maintained as per ISI norms.  As per rules, buyers cannot build within 15 metre on either side of an HT line. 

16.      In its advt. in the media, Vatika Ltd., is not making mandatory disclosures and to substantiate this, I have already enclosed a copy with my previous letter to you of the advt. published in Times of India (Delhi) on 30.8.2014 for “One Express City” in which against licence No. 91, the Company has not mentioned number of plots/ flats and other details.  On this, the only information given is “License No. 91 of 2013 dated 26.10.2013 for group housing “One Express City” on 76080.9 sq. m. 18.80), Sector 88B, Gurgaon.  Copy of approvals can be checked in Corporate Office of M/s. Vatika Limited – the developer”.

M/s. Vatika Ltd., Gurgaon giving big advt. in various papers stating “NOW IS THE TIME TO BUY”. (Advt in Hindustan (Hindi) 25.9.2014). The Company is selling plots and flats in four projects out of which for two, it does not hold any licence.  These two projects are named as Soverign Park and Sovereign Next for which Licences (No. 119 of 2012 and 65 of 2013) for sector 99 for Residential Group Housing have been issued to “M/s. Planet Earth Estate Private Ltd.” Gurgaon.   To escape legal liability, it is mentioned in the advt. in fine print, “this is not a legal offer",

17.     If you need some supplementary information, please inform me and I shall provide the same, subject to availability of the same with me.

18.     That the cases given above may be the few tips of an iceberg and we demand an inquiry into the affairs of Vatika Ltd. so that full facts can come to the fore and the hapless buyers are saved from duping and hoodwinking.    

Yours faithfully,

 

(M. K. Gupta)

Convener

Encl: As above.

 

Most objectionable clauses of the “Indemnity Bond Cum declaration” on which buyers are being forced to sign.   

Clause 2, last few lines.

I/ We agree and undertake that my/our failure to pay any such additional charges within the aforesaid time period shall be subject  to  interest as per Builder Buyer Agreement dated ___________ executed between me/us and the company. I/We agree that in case there is a continued default in payment or in clearing the arrears by me/us beyond a period mentioned in Builder Buyer Agreement/demand letter, you  will have the right to terminate the Builder Buyer Agreement and re-enter the said unit without prejudice to your other rights available under the said Builder Buyer Agreement or the law.  

Objection: 

This clause seeks to deprive the buyers from their flats the last line of the indemnity.  Buyers are required to indemnify and declare that the Company will have the right to take away the flat without prejudice to buyer’s rights available even under the law.  In the long run, it can prove to be very dangerous.

How the builder can overrule the laws and snatch the rights granted under the law?

Clause 10- I/We  undertake to complete all documentation related to handing over of possession  namely, final inventory check, recording of snags (if any) with the  designated possession team of the Company (at the site) within the stipulated time-frame and possession will not be deferred on account of snags (if any) highlighted.

Objection:

Snag means problem, hitch, difficulty, hurdle, obstacle etc. Some major deficiency may be termed as “snag” and the buyers are being forced to take possession even after that. 

Clause 11 - I/We agree and undertake to bear/pay  holding charges and  the maintenance charge, as applicable,  in case the delay is from my end in taking over the possession of the unit. Apart from this, we also agree and undertake that any restoration cost, caused due to deterioration in the unit, attributed to me/us for any delay in taking over possession of the unit.

OBJECTION:

As per rules of the Town and Country Planning, maintenance charges cannot be taken unless the possession is given in a legal manner.  Forcing possession without CC/OC amounts to giving possession in an illegal manner and the builder is abetting the buyers to violate the rules.  Buyers can obtain legal opinion on this from an expert lawyer.  However, memos of the T&CP stating that the flat cannot be used for residential purpose without CC/OC and builder cannot take maintenance charges without obtaining this certificate have been posted on the face book page.