MCGM and Municipal Commissioner, Mira Road have by filing affidavits in High Court matters confirmed facts that majority of the buildings of Ravi Group constructed found “unauthorised” or the builder has not completed majority of requisite mandatory compliances due to which authorities withheld Occupation Certificates of majority of his existing buildings in Mira Road & Mumbai.
Our laws believe in “Buyers Beware”. Laws put responsibility on buyers to prove their bonafide first i.e. to verify all requisite approvals, title, compliance of conditions, legality of work etc.
In such circumstances, how to protect yourself and your hard earned money? The answer is to know his modus operandi and take appropriate safeguards of prevention before your name is added in hundreds of victims of this builder. The modus operandi is as under:
1. Do not rely upon projects approvals given by the Banks. The reason is that even banks depend upon reports of Valuer, Architect, Advocate etc. Generally, the advocates are hired from approved panel. What is important to note that generally Advocates who do not get reasonable work do such work as part time. They hardly verify above stated things which require full attention and dedication. Even otherwise, if Bank has availed services of good professionals, they get satisfied and approve the project, if requisite CC and approved plans are received. This builder takes advantage of this BIGGEST loophole. These so called “professionals” of any bank, NEVER bother to verify that whether the builder has complied with the conditions stipulated in these approvals. Otherwise, the Banks would have never approved any project of this builder. These so called professionals never bothered to verify the track record of any builder in respect of his past projects in regard to compliances as stated herein. They do not verify that whether any notices are issued in the subject project by any authority. They do not verify whether there were/are any breaches. We have carried out huge correspondence in this regard with RBI officers, National Housing Bank, Leading Banks etc. But it appears that they thrown it in dustbin. So you do it by own! Ultimately, it is your money which will be at stake! Banks put a condition in the loan agreement that if there is any irregularity or breach by builder, the Bank will not be responsible but the customer will responsible!
2. This builder publishes huge advertisements and offers very competitive rates to lure innocent purchasers. People out of greed, get attracted by these advertisements and purchase flats.
So do not get attracted blindly by advertisements howsoever it is big and published in any news paper. Do not rely on articles published in News Papers as the builders who gave huge advertisements, are allowed to print their own articles in name of any staff member of News Papers for which they charge separately some times. However, preserve all such advertisements & articles, brochures etc.
3. As per rule, Registration Authorities cannot register flat sale documents if the developer has not annexed the copy of Commencement Certificate (CC) or Bandhkam Parvana (CC) for the floor on which the flat is situated. Eg. However, the Ravi Group by giving huge bribes get registered the flat sale documents without requisite CC. Due to our complaints, Mumbai Authorities almost stopped this practice. Mira Road & Bhayender Authorities still continued this practice (we have proofs). However, recently Mira Road officers increased their demand so this builder now registering flat sale documents of Mira Road flats from Thane! (we have proofs)
Therefore, personally verify the CC eg. If the flat no. 1401 on 14th floor, the CC should indicate clearly that permission is issued upto 14th floor or higher floors.
You have right to demand inspection of IOD, CC, approved floor plan, NA order, layout approved plan, title documents etc. before payment of Token Money. So insist for these documents. Builder will definitely give inspection.
4. But this builder is more smart then you. He many times attaches CC of the other buildings as if that CC is of same building of which flat is registered or sold. The builder keeps the name of building and wings different in sale plans, brochure and flat agreements whereas he puts numbers in plans submitted for approvals! How any person can find out this fraud?
First find out, the survey no. of the land where the proposed building will be constructed. Compare it in agreement and approved plans.
You should ask for sale brochure and mark the exact building in which you intend to purchase flat. Then compare it with the approved layout plans & CC. Find out exact location of the building (not in area but on the land) in both these plans and you will come to know what number is given in approved plans. You now verify the latest CC of the project where it will be clearly stated that upto which floors the permissions for that particular building is given.
Even the flat nos. given in sale plan/sale brochure/agreement is different then the flat nos. given in the approved plans. So verify every thing.
Plans must be latest and not the old one. The only solution to verify the correctness is to spent Rs.10/- and apply for inspection and copy of all relevant plans, CC from Municipal Authority itself and obtain the certified copy. The real truth will come out. You also verify that the entire records does not that any type of notice is issued to the builder for any breach, irregularity, non-compliance etc. Keep in mind, the Municipal records will for entire project and not one building. So it is necessary that entire project records are verified as breach in one building of the project affects all buildings in the projects. This is important as recently, known architect has alleged that this builder has fabricated plans and put signature of the architect without his knowledge! See the copy of the architect letter is annexed.
One most important point is that plans shown in sale brochure/agreement and the actual approved plan of the flat are not comparable though identical. There are differences as concerned to overall drawing, location, size and numbers of internal rooms, measurement etc., balcony etc.
5. Still there are many hitches, so continue. What is the meaning if CC for your floor is received but upper floors above your flat is not issued?
Ultimately, your building become “unauthorised” as it affects entire building when question of OC is arise. So, you need to verify and assure that the entire floors proposed by the builder is sale pamphlet are also shown in approved plan & CC eg. If the building is proposed for 21 storied and the builder has received CC for St+7 upper floors, then what is the meaning.
Ultimately, you can use the flat only when entire building is got completed and not just not your floor.
Do not believe in promises or representation of builder that he will purchase TDR or have already arranged TDR or further approvals are in process. As per track record, the builder completes construction whether approvals are received or not. In such circumstances, only best solution is that you do not purchase the flat or hold decision till you found that CC of entire floors of the building are received.
6. Now come the title related verification. Ask inspection of all title documents referred in recital of the flat agreement, title certificate annexed to it. Since documents were not registered, the MCGM has rejected the proposal of the developer to handover the Roads though FSI credit is once given of Road land to developer by other department. Ultimately, the MCGM issued notice to developer that if these compliances is not made, all existing buildings will be declared as unauthorised!!! Thus, even if developer succeed to avoid compliance requiring registered documents at the time of sanction of project, he was ultimately again required to comply with it at other stage. The difference is that meantime, he sold out entire flats, constructed buildings, handed over possession. Now, he is not bothered if MCGM is declaring the buildings as “unauthorised”. This is fact. Further, the building will never get Conveyance. You will find a clause in end of every flat agreement of this developer stating that flat purchasers are liable to pay deficit stamp duty at the time of conveyance!!! As per law, unregistered documents cannot be allowed as evidence in case of litigation.
First primary thing is to be verified is that whether all these documents are properly stamped and registered.
See the Revenue records like property register card and 7/12 of the property. You will find that name of different persons appear and not of the developer. Therefore, ask for all the documents showing a chain/link that how the property was transferred by these persons to others and ultimately to the developer.
It is necessary to check the internal conditions of each such documents putting any restriction on rights.
It is necessary to check whether the developer got valid possession and entire consideration referred in all documents in chain are fully paid.
7. While negotiations, you will find that the representatives of developer will give many promises or representations. Ask whether the developer is ready to give these promises in writing?
8. Please entire terms and conditions of the draft flat sale agreement before giving the token and verify the relevant things accordingly.
9. Most importantly verify the track record. If the developer has not complied with his promises and mandatory compliances in his past projects where he received entire consideration, how can you expect that he will in your project???