If you are stuck in such a situation, here is what to do.

Mr. Alok and his brother, Mr. Sameer, decided to jointly invest in a plot of land within a new gated community project, “Serene Enclave,” being developed by “Prestige Homes Ltd.” in the city of Navpur. They followed the initial procedure, paying a 10% booking amount. As per their agreement, the next 10% was due upon the signing of the sale agreement.

Recently, in preparation for the registration, the builder’s team requested them to pay the requisite stamp duty and registration fees online to book an appointment at the local sub-registrar’s office. Mr. Alok promptly transferred approximately ₹65,000 via an online banking transfer for this purpose, trusting the builder’s team to handle all the necessary documentation.

However, upon arriving at the sub-registrar’s office, they were shocked to discover a critical error. The official documents prepared and submitted by Prestige Homes Ltd. only listed Mr. Sameer as the purchaser, completely omitting Mr. Alok’s name as a co-owner. The official, proceeding with the information provided, captured Mr. Sameer’s photograph and thumbprint, marking the process as complete for a single owner.

The brothers immediately raised an alarm, halting any further steps and informing the builder’s staff present on-site that the registration was incorrect and unacceptable. They made it clear they would not proceed unless the error was rectified to reflect their joint ownership as originally agreed.

The builder’s team acknowledged the mistake, attributing it to a “backend technical error.” They offered a verbal assurance that the incorrectly paid amount would be refunded, but mentioned that the process could take over 60 days. To date, Mr. Alok has only received an automated system message confirming the initial application submission, with no official communication regarding the cancellation or the refund. The builder is now pressuring the brothers to pay the entire registration fee again for a fresh application, without providing any written guarantee or a clear timeline for the refund of the first payment.

Advice in such cases

• Document Everything: Maintain a meticulous record of all communications with the builder. This includes emails, text messages, letters, and notes from phone calls (with date and time).
• Do Not Make Further Payments: Refrain from paying the registration fee a second time until you have a written commitment from the builder. This commitment should clearly state that the first payment will be refunded by a specific date or adjusted against the new payment.
• Send a Formal Written Communication: Draft a formal letter or email to the builder detailing the entire sequence of events, their error, the financial loss incurred, and your demand for an immediate resolution. State clearly that their negligence has caused this issue and you hold them responsible.
• Issue a Legal Notice: If the builder does not respond favorably, the next step is to have a lawyer send a formal legal notice. This notice will outline your grievances and the legal action you intend to take if the matter is not resolved within a specified period.

Applicable Sections of Law

Several laws can be invoked in such a scenario to protect your rights:

• The Real Estate (Regulation and Development) Act, 2016 (RERA): This is the primary legislation for real estate disputes. The builder’s actions constitute a failure to fulfill their obligations under the Act. You can file a complaint with your state’s RERA authority for the builder’s default and seek a refund with interest and compensation.
• The Consumer Protection Act, 2019: The builder has provided a deficient service and engaged in an unfair trade practice. As a “consumer” who has paid for a “service” (property development and transfer), you can file a complaint before the appropriate District or State Consumer Disputes Redressal Commission to seek a refund, compensation for mental agony, and litigation costs.
• The Indian Contract Act, 1872: The builder has breached the fundamental terms of the booking agreement, which was for joint ownership. This breach gives you the right to seek specific performance or claim damages.
• Bharatiya Nyaya Sanhita, 2023 (BNS): If there is evidence to suggest that the builder’s actions were deliberately deceptive to cause wrongful gain for themselves or wrongful loss to you, a criminal complaint can be considered. Sections such as Cheating (Section 318 BNS) or Criminal Breach of Trust (Section 316 BNS) could potentially apply, though proving criminal intent can be challenging.

If you are the complainant

• Gather All Evidence: Collect all documents, including the booking form, payment receipts (for booking amount and registration fees), the draft sale agreement, and all correspondence with the builder.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.
• File a Formal Complaint: Based on your lawyer’s advice, file a complaint before the appropriate authority, which is most likely RERA or the Consumer Commission. Your complaint should be detailed, chronological, and supported by all the evidence you have gathered.
• Seek Specific Relief: Clearly state your demands in the complaint. This could be a direction to the builder to rectify the error at their own cost, a full refund of all amounts paid with interest, and compensation for the harassment and delay caused.

If you are the victim

• Stay Calm and Act Methodically: Emotional reactions can be counterproductive. Approach the problem systematically by first documenting the issue and then seeking professional advice.
• Do Not Agree to Verbal Assurances: Builders may try to resolve the issue with verbal promises. Insist on everything being communicated in writing on the company’s official letterhead.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.
• Understand Your Rights: You have the right to a property registered correctly as per your agreement. The builder’s error does not obligate you to incur further financial loss or risk. You are entitled to a swift and cost-free resolution.

How the police behave in such cases

In matters of this nature, the police are often hesitant to register a First Information Report (FIR). They typically view such disputes as being of a civil nature, arising from a contractual disagreement. They will likely advise you to approach a civil court, the Consumer Commission, or RERA. However, if your legal notice and complaint clearly articulate elements of fraud, cheating, or criminal breach of trust with supporting evidence, the police are obligated under the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS) to register an FIR and conduct an investigation. A lawyer’s intervention can be crucial in ensuring the police take cognizance of the criminal aspects of the case.

FAQs people normally have

• Should I pay the registration amount again as the builder is asking?
  

  It is highly advisable not to. Paying again without a written settlement for the first payment puts you at further financial risk. Insist on a written undertaking from the builder for the refund or an adjustment note before making any new payment.

  
  
• Can I cancel the entire booking and get a full refund?
  

  Yes. Since the builder is at fault and has breached the terms of the agreement, you have strong grounds to cancel the booking and claim a full refund of all amounts paid, along with interest and compensation, by approaching RERA or the Consumer Commission.

  
  
• Which is a better forum for my complaint: RERA or the Consumer Commission?
  

  Both are effective forums. RERA is specialized for real estate matters and is often quicker. The Consumer Commission has a broader jurisdiction and can award compensation for mental agony more liberally. Your lawyer can advise the best forum based on the specifics of your case and the desired outcome.

  
  

What evidence is required?

To build a strong case, you will need the following evidence:

• The initial Plot Buyer’s Agreement or Booking Form showing both names as applicants.
• Receipts for all payments made to the builder.
• Proof of payment for the registration fees (bank statement, transaction details).
• Copies of all emails, letters, or messages exchanged with the builder’s team.
• The incorrectly prepared registration documents, if you have a copy.
• Any communication from the sub-registrar’s office or portal.
• A copy of the legal notice sent to the builder and its postal receipt.

How long will the investigation take?

The duration depends on the path you choose:

• RERA/Consumer Commission: These forums are designed for speedy disposal. A case can be resolved within a few months to a year, although complex cases can take longer.
• Legal Notice: A builder might resolve the issue within the 15-30 day period given in a legal notice to avoid litigation.
• Criminal Investigation: If an FIR is filed, the police investigation timeline under the BNSS can vary significantly depending on the complexity of the case and the cooperation of the parties involved.

Advocate Sudhir Rao, Supreme Court of India