Lawyer for Money Recovery From Builder in India

By Team Legal Helpline India, May 23, 2021

Lawyer for Money Recovery From Builder in IndiaBrief write-up on the services of the lawyer for money recovery from the builder in India by our team of experts to ensure the foolproof process of money recovery from the builder.

The process of money recovery from the builder in India is now clear with the induction of two very important legislation which now ensures the foolproof system for recovery of money from the builder in India. We will discuss some of the options available to a Lawyer for Money recovery from the builder in India hereunder:

i) RERA proceedings

ii) NCLT proceedings

iii) Civil recovery suit

iv) Consumer Court complaint

v) Criminal complaint of cheating and forgery

vi) Complaint under 138 Negotiable Act

Let us discuss all the above said options one by one available to Lawyer for Money recovery from builder in India so that one can get a fair idea of the law and the process involved.

i) RERA PROCEEDINGS:

The central government has enacted Real Estate Regulation and Development Act according to which all the states have created RERA. It literally means Real Estate Regulatory Authority under which the state government has created a body named RERA to regulate real estate activities. However, the said act is applicable only on the projects which were completed after May 2016 and the plot size is more than 500 Square Meters and/or more than 8 units are being constructed.

For claiming back the money from the builder under RERA, Section 19 provides the power and Section 31 provides for the powers to the RERA to adjudicate the claim. Accordingly, the buyer or investor can initiate the process for recovery of his money from the builder if he so desires.

RERA has further empowered the investor to withdraw from the project at any point of time without any reason. More so if the builder has not acted properly, there is any delay in the project or there are other irregularities, the investor or the buyer has every reason to withdraw from the project and claim back his money.

The buyer can not only claim back the money, he is entitled to interest and damages depending upon the facts of the case.

No time limit is applicable for the RERA projects, but you can not claim the money from the builder for non RERA projects before the RERA or the project which were completed before implementation of RERA.

PROCESS TO BE ADOPTED BY LAWYER FOR MONEY RECOVERY FROM BUILDER IN INDIA UNDER RERA:

Issue a notice to the builder for refund or recovery of the amount due by clearly mentioning the principal amount, interest and the damages if applicable.

Notice should be issued through e mail and registered post or hand delivery against receipt against any denial at subsequent stage of the matter.

Institute the online complaint before RERA on the website of the state RERA concerned by quoting the RERA number of the project and giving all details therein.

Once the matter is decided by RERA, follow up with the authorities for recovery of the money finally in your account.

ii) NCLT PROCESS TO BE ADOPTED BY LAWYER FOR MONEY RECOVERY FROM BUILDER IN INDIA:

National Company Law Tribunal is a creation of recent time with very effective and clear provisions pertaining to claiming money from the defaulting builders.

Any  Lawyer for Money recovery from builder in India will first issue and notice of recovery against the builder thereby giving him a time of 24 days to pay back the money.

After the lapse of the specified period of 24 days, the claim petition as per the format of NCLT is filed and the same is either accepted or rejected within 14 days of filing.

The IBC resolution is passed and the builder is directed to pay back the money failing which the IBC orders for the take over or any such suitable order which ensures the refund of the payment of the buyer. The process is simple and easy.

The proceedings under NCLT can  be initiated by Lawyer for Money recovery from builder in India

 against a incorporated body i.e. a company or a LLP hence it has the limitations if the builder is a partnership firm or a proprietary firm.

iii) CIVIL RECOVERY SUIT:

The invoking of the civil recovery suit by a  Lawyer for Money recovery from the builder in India is the old and classic method, which is generally very clumsy, time-consuming, and uncertain as it involves several complicated processes.

In case the facts of the case are very clear and the amount has been admitted by the builder in specific terms on paper, then the process of recovery of money from the builder by a Lawyer for Money recovery from builder in India becomes very effective remedy.

The Lawyer for Money recovery from builder in India has to issue the legal notice of demand against the builder first and give him time to pay back the money.

If the builder defaults in refunding the money, the next step is to file a civil recovery suit by the Lawyer for Money recovery from builder in India.

Another demerit of the process is the payment of the court fees in advance by the claimant before the filing of the suit which can be ordered to be refunded by the builder by the court.

iv) CONSUMER COURT PROCEEDINGS:

The proceeding before consumer court is the best and most involved provision under which the Lawyer for Money recovery from the builder in India initiates proceedings for recovery of the money from the builder.

The consumer court proceedings are based upon the amount being claimed.

If the amount claimed is up to Rs-20 lakhs, then the Lawyer for Money recovery from the builder in India will file the complaint about the recovery of money from the builder before the District Consumer Disputes Redressal Forum.

The proceedings of the consumer court are simple and summary.

PROCESS BEFORE THE CONSUMER FORUM TO BE ADOPTED BY Lawyer for Money recovery from the builder in India

  • Issuance of notice to the builder either by the buyer or his lawyer.
  • Filing of complaint with all requisite documents before the Consumer Forum.
  • The Consumer Forum issues notice on the complaint filed by the buyer to the builder.
  • The builder is required to file his reply and documents if any.
  • The final order is passed by the Consumer Forum, directing the builder’s recovery to the buyer.
  • The buyer files an execution petition if the builder fails to deposit the money.
  • The Consumer Forum issues warrant execution or attachment if the builder fails to pay back the amount.

v) CRIMINAL COMPLAINT OF CHEATING AND FORGERY:

It has been observed that the builder very often indulges in the fabrication of documents and making several fake claims on the records related to the ownership, bank, sanction, etc. If the buyer finds that the builder is not the owner of the project, neither he has a valid title of the project, the Lawyer for Money recovery from the builder in India engaged by the buyer can initiate criminal proceedings against the builder. Criminal complaints against the builder can be filed to fabricate documents, criminal misappropriation of money, or impersonation.

The services of an expert Lawyer for Money recovery from the builder in India are required for the said services as it is highly specialized work and the builder can be booked under a criminal case on the basis of the criminal complaint lodged against him.

vi) COMPLAINT UNDER 138 NI ACT;

Several builders issue cheques in lieu of the return of money to the buyers. The said cheques very often are returned by the bankers of the builder unpaid due to several reasons. One of the main reasons is the insufficiency of funds in the account of the builder.

The Lawyer for Money recovery from the builder in India can on the basis of the instructions issued by the buyer can initiate the complaint proceedings under Section 138 of the Negotiable Instruments Act and take the builder to task for his act of issuing cheques without keeping the amount in the account.

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