One of my clients recently had a case which I am explaining below and if you are stuck in such similar situation, here is what to do.

Note: Due to attorney-client privilege, I cannot disclose complete case details or identify the actual parties involved. However, I am sharing the essential facts and legal approach so that if you find yourself in a similar situation, you can understand the available solutions and legal remedies.

Mr.X purchased a plot in XYZ Builders Estate located in Area A. The builder informed him that the Agreement for Sale could not be registered due to complications at the registrar office. The KAVERI 2.0 system was automatically fetching property data from e-Swathu/e-Aasthi during pre-registration, and the layout data appeared to have discrepancies. Despite these registration issues, XYZ Builders continued demanding payment milestones from Mr.X. The builder claimed that the registration problems were temporary and would be resolved soon, but months passed without any concrete progress. Mr.X found himself in a precarious position where he had paid substantial amounts but couldn’t secure legal title to the property due to system-related registration blocks.

Advice in Such Cases

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 to 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.

Stop further payments immediately until registration issues are resolved. Document all communications with the builder regarding registration delays. Verify the actual status of approvals and clearances independently through official channels. Demand written timeline from builder for resolving KAVERI 2.0 complications with specific milestones.

Applicable Sections of Law

Under Bharatiya Nyaya Sanhita (BNS), Section 318 deals with cheating and fraudulent practices in property transactions. Section 321 covers criminal breach of trust when builders collect money without fulfilling obligations. The Registration Act, 1908 governs property registration procedures and requirements. Real Estate (Regulation and Development) Act, 2016 (RERA) provides specific remedies for registration delays and builder defaults. Consumer Protection Act, 2019 offers additional recourse when builders fail to deliver registered properties despite collecting payments.

If You Are the Complainant

• File complaint with RERA authority in your state citing registration delays and demanding refund or specific performance
• Lodge FIR under BNS Section 318 if builder continues collecting money despite known registration issues
• Send legal notice demanding immediate resolution or refund with interest within 30 days
• Approach District Consumer Disputes Redressal Commission for unfair trade practices and deficiency in service
• Maintain detailed records of all payments made and communications with builder regarding registration status

If You Are the Victim

• Immediately cease all further payments to the builder until registration issues are completely resolved
• Request detailed written explanation from builder about specific KAVERI 2.0 complications and expected resolution timeline
• Verify independently with sub-registrar office about actual status of layout approvals and data discrepancies
• Join with other affected plot buyers to file collective complaint for stronger legal position
• Document all financial transactions and demand acknowledgment receipts specifying refund terms if registration fails

How the Police Behave in Such Cases

Police typically treat property registration disputes as civil matters initially. They may suggest approaching RERA or consumer court first. However, when builders continue collecting money despite known registration impediments, police recognize it as criminal cheating under BNS Section 318. Investigation focuses on builder’s intent and whether they deliberately concealed registration problems while collecting payments. Police examine KAVERI 2.0 system records and layout approval documents to establish facts.

FAQs People Normally Have

Can builder demand payment if registration is blocked? No, builders cannot ethically demand payment when they know registration cannot be completed due to system or approval issues.

Is KAVERI 2.0 blocking temporary? It depends on underlying issues. Data discrepancies in e-Swathu require correction of revenue records which may take months.

Can I get refund with interest? Yes, RERA provides for refund with interest if builder cannot deliver registered property within promised timeframe.

What if builder claims it’s government system problem? Builder’s responsibility to ensure all clearances before launching sales. System issues don’t absolve them of delivery obligations.

What Evidence Is Required?

• Sale agreement and all payment receipts showing amounts paid to builder
• Written communications from builder acknowledging registration delays and KAVERI 2.0 issues
• Official documentation from sub-registrar office confirming registration blocks and reasons
• RERA registration certificate of the project and builder’s RERA disclosures
• Layout approval documents and any notices from revenue authorities regarding data discrepancies
• Bank statements showing payment transfers to builder’s accounts
• Screenshots of KAVERI 2.0 error messages or rejection notices if available

How Long Will the Investigation Take?

RERA complaints typically conclude within 60-90 days if evidence is complete. Police investigation under BNS may take 3-6 months depending on complexity of documentation review. Consumer court proceedings usually take 6-12 months. Resolution timeline largely depends on builder’s cooperation and whether they agree to refund or can genuinely resolve registration issues through proper channels.

Advocate Sudhir Rao, Supreme Court of India