Cheating by Raheja Developers Ltd - Auction of incomplete houses as ready to move dream houses
My friend got an email from Raheja informing him of auction of residential (stated as “ready to move dream houses”) and commercial property in Gurugram on 24 March 2019. He informed me of the same since both of us were looking for property nearby for settling down post retirement within next month or so. We decided to participate in the auction and accordingly, on 19 March 2019, he requested the Coy to forward the list of properties coming up for auction. We wanted to see the property before auction. However, there was no reply from the coy. As a result we couldn’t see the properties before auction and the list of properties coming up for auction was only displayed at the venue of auction on the day of auction. We reached about 45 mins before the auction and shortlisted two adjacent flats for bidding. Thereafter we informed the executives present at the venue that we want houses to shift immediately and hence are interested in “ready to move” residential property only. To this they confirmed that the shortlisted flats are indeed “ready to move” and we can bid for them without hesitation. Thereafter we were directed to another executive who was supposedly more aware of this site and informed us of the directions and sun conditions etc. He also confirmed that the houses are ready to move and over 250 families are already residing in the said project.
Thereafter we paid Rs 51000/- for participating in the bidding and finally won of the bids for both the houses. We signed the application and paid 10% of the cost as earnest money through credit card and the allotment letter was issued to us by 5 PM. Immediately after getting free from there, we went to see the houses and to my horror, I found that the houses were far from ready for moving in. In one of the houses, the floor tiles had not been fitted in any of the three bedrooms, three toilets and kitchen and toilet fittings including the wash basin and commodes were missing. Multiple seepages were seen all over the house. The toilet was open to the area carrying vertical drainage pipes without any window. The false ceiling in the toilets was all broken and lying around. The electrical fittings and wires were all damaged. We were told by the few residents staying there that the builder is notorious of not undertaking works after receipt of money and these houses have been lying unattended for 6 to 7 years.
The very next day, we emailed Raheja about the condition of the house and requested them to return our money. But they said that they will ensure completion of the pending works before handing over the house. After two or three days, an executive from the coy called both of us individually and asked us to pay the balance amount by 31 March 2019. On being asked about the repairs, she said, that the repairs will be undertaken but asked me to make the payment. I informed her that though I have initiated the my application for loan, I would be grateful if the repairs can be completed before any further payment. It is brought out here that the specifications that we were made to sign before payment of the 10 % of the cost, had specified wooden floor in all three bedrooms and tiles in toilets and kitchen. I had taken photo of this complete document.
Thereafter, on 02 March 2019, I received another call from their executive who repeated that they will undertake the repairs but informed me that I will have to buy the toilet fittings since the coy will not buy these fittings for one flat. But he wanted me to pay another 80 % of the cost of flat and hold 10% of the cost of the flat till completion of the works. I accepted to buy the toilet fittings but requested him to forward the offer through email to put down the commitment in writing.
However to my horror, I got an email from the coy next day stating that the term "Ready to Move in" does not stand for an apartment which is ready with all fixtures & fittings but it means that apartment in ready to occupy immediately after all requisite approvals of government and anyone can occupy and get the balance work done as per his/her personal choices. The email also stated that the coy executive had offered me a special proposal but the same was also declined by me and in the running situation, they were left with no option but to cancel your allotment and the earnest money paid towards total bid amount shall be forfeited as per agreed terms & conditions. This email also mentioned that we had signed some document whereby we accepted the houses in as is where is condition before participating in the auction. Since neither of us remember signing any such document before auction, we forwarded an email immediately requesting them to forward a copy of this document which is yet to be received.
Now I request my experienced friends here as to what are the best options available for me and my friend? We don’t want to lose our hard-earned money but also are scared if they don’t carry out the work after receiving another 80% of the cost. Are there any legal remedies to ask for my 10 % cost paid since the houses were not ready to move as had been promised before the auction by their executives and the list of houses coming up for auction was not made available for inspection before participating in auction? Can I expect some relief from the Judicial system?
PS: On the day of auction, I had inquired for any other such residential houses available since, my sister in law was also looking for a house in the vicinity. I was told that there are a few houses that were returned by the persons who had won the bids in the previous week since their loans were not cleared. Though they informed that their money was returned, but now I feel their 10% of the cost too must have been kept by the coy and the reason for return of the house must have been similar that is, incomplete work and extensive damages in the house. more
Deeply saddened to hear your experience. Request pursue the matter through legal avenues after availing some alternate accommodation. more