Legal Question in Real Estate Law in India

We have purchased a Land About 27000 SqFt Aprrox. Since it is Collector land we have paid to Government- the official cost what they have declared for. The plot was fully vacant. We are 52 members in this Proposed Society & time to time we have contributed the required funds to purchased the Said land. Ultimately we could pay the amount to the Government & Aquire the said plot on Our Society Name, we are all State Government Servent.
About 5 years back we have finalized a Developer to develope the said plot on following criterias.
1) Developer has to Build 2 Different buildings , one for us for 52 Members & other one is Salable by purchasing & loading the TDR
By the Developer from his Account because we Havent chargred him for the land which we have purchased, Builder has agreed that on behalf of land he will not charge anything for constructing our 13 story building.
2) He should complete our Buidilng First & then can start the Second building which is said salable. These are the Mailn Clause.
The Developer Constructed the 13 slab of our bldg without any wall in between up to 13 floor & simultaneously started the second building & completed 4 floor of it. & work has been stopped since 12 months.
Last year BMC has come out with the Fungible Area to be allotted to the builder. Our developer has applied for the same.
Since he has constructed 13 slab of our Bldg. we will not get any benefit as far as Fungible area is concerned. But for his second bldg. will definitely get the advantage because only 4 floor has been completed he can replan for the said second bldg.
Now the developer says that let our CC come from BMC
Then only we can start the work.
Sir, I would like to ask whether just for Fungible Area can he stop the work of our 13 story bldg.
Can we discontinue the said builders MOU
What is the leagal procedure for that.
Pls guide us how we shoul go about.
Pls let me know the further detail in my Mail ID
Thanks & Regards
VSR
Mail Id: [email protected]

Asked on 5/18/13, 5:09 am

2 Answers from Attorneys

Fca Prashant Chavan Expert Edge LLP

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18.05.2013

Dear Sir / Madam,

You should pressurize the builder to complete the first 13 storey building as planned and agreed. Just for the sake of fungible FSI, the builder cannot stop work on the first building, the reason is something else. To discontinue your MOU with the existing Developer, you will need to pay him the construction costs incurred by him till date which will be a matter of lengthy litigation which will unnecessarily hamper the completion of your project, hence not recommended.

Regards,

Answered on 5/18/13, 5:56 am

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