Legal Question in Real Estate Law in India

Blank cheque demanded from second party

Hi,

I have recently purchased a flat and it is due for possesion in next few days, The builder is now asking me for blank cheque. Builder says that the Govt. of India may pass an order to apply VAT on ready possesion properties (flats) in which case he will use this cheque to give the VAT on my behalf. My questions are:

1) is this demand of blank cheque legal?

2) is there any other method to resolve this problem?

3) he never befor told me about the blank cheque or VAT, there is nothing of this sort in written too.


Asked on 10/21/08, 2:43 am

3 Answers from Attorneys
Shrichand Nahar S.V.Nahar, Advocate

Re: Blank cheque demanded from second party

1. No.

2. Several methods.

3. You need to read agreement to find out what has been agreed. Generally, it is mentioned in the agreement that if any tax is levied, same shall be borne by the purchaser.

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Answered on 10/22/08, 1:47 am
SARATHI VP VP VPS LAW FIRM

Re: Blank cheque demanded from second party

Don't give blank cheque or document to anyone under any circumstance.Take the builder to a Consumer court through a lawyer.

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Answered on 10/25/08, 9:49 pm
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Re: Blank cheque demanded from second party

You may execute a written agreement with the builder mentioning that the cheque is to be used ONLY for payment of VAT, if applicable; the cheque number may be mentioned in that agreement. you should rather prefer the cheque to be issued in the name of the authorities to whom VAT, if applicable, may be payable. only the amount may be left blank.

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Answered on 10/21/08, 6:46 am


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