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

Mr. Sameer Sharma invested his hard-earned money into a commercial property, purchasing a shop in the “Cosmos Galleria” mall, developed by “Apex Infra Developers,” for approximately 30 lakhs. The purchase came with a formal agreement for “assured returns” until December 2022. However, the situation took a turn for the worse after that period.

Apex Infra Developers abruptly stopped paying the promised rental income, initially blaming the economic slowdown and operational challenges. Later, in December 2022, the developer leased out Mr. Sharma’s shop to a media production house for a five-year term. The new rental agreement was structured on a revenue-sharing basis: 20% of the net revenue for the first two years, and an average of those years or 20% (whichever is higher) thereafter.

To Mr. Sharma’s shock, this new arrangement resulted in him receiving absurdly low amounts, such as ₹150 and ₹200 for different months. The total payout from December 2022 to the present day has been a mere ₹5,000. Despite numerous attempts to resolve the issue through dialogue with the developer, there has been no positive outcome. Mr. Sharma is now in a difficult position where he is not receiving the promised returns and does not even have physical possession of his own property. He is seeking legal recourse to address this clear breach of trust and contract.

Advice in such cases

If you find yourself in a similar situation, it is crucial to act systematically and protect your interests. Here are the steps you should consider:

• Gather all relevant documents, including the builder-buyer agreement, the assured return agreement, payment receipts, bank statements, and all correspondence with the developer.
• Send a formal legal notice to the developer through a lawyer. This notice should clearly state the breach of contract, demand the outstanding dues, and ask for possession of the property. This is often the first formal step before initiating litigation.
• 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.
• Explore filing a complaint before the Real Estate Regulatory Authority (RERA) for non-compliance with the agreement and failure to deliver on promises.
• Consider filing a case in the appropriate Consumer Dispute Redressal Commission (District, State, or National, depending on the property’s value) for “deficiency in service.”
• As a last resort or in parallel, a civil suit for breach of contract, recovery of money, and possession of property can be filed in a civil court.

Applicable Sections of Law

Several Indian laws can be invoked in such cases:

• The Real Estate (Regulation and Development) Act, 2016 (RERA): This is a specialized law to protect homebuyers and investors. You can file a complaint against the promoter (developer) for violating the terms of the agreement.
• The Consumer Protection Act, 2019: A developer providing a property with an assured return scheme is rendering a “service.” Failure to honour this commitment amounts to a “deficiency in service,” making the developer liable under this act.
• The Indian Contract Act, 1872: The assured return agreement is a binding contract. The developer’s failure to pay is a direct breach of this contract, entitling you to sue for damages and specific performance.
• The Specific Relief Act, 1963: This Act can be used to file a suit for recovery of possession of your immovable property.

If you are the complainant

As the person filing the complaint, your approach needs to be organized and backed by solid evidence.

• Documentation is Key: Your entire case will rest on the documents you possess. Ensure every piece of paper, from the initial booking form to the last email, is properly filed.
• Issue a Strong Legal Notice: The legal notice should be drafted by an experienced lawyer and must detail every failure on the developer’s part, setting a clear deadline for them to comply with your demands.
• Choose the Right Forum: Your lawyer will help you decide the best legal forum—RERA, Consumer Court, or a Civil Court. This decision depends on the specifics of your case, the relief sought, and the speed of adjudication in each forum.
• 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.

If you are the victim

Being a victim of such a scam is financially draining and emotionally exhausting. It is important to remember that the law is on your side if you proceed correctly.

• Do Not Delay: Time is of the essence. The law prescribes specific limitation periods for filing cases, so do not wait too long hoping the developer will have a change of heart.
• Understand Your Rights: You have the right to the promised returns, possession of your property, and compensation for the mental agony and financial loss suffered.
• Stay Resolute: Developers and large companies often use delaying tactics to wear down complainants. Stay firm and pursue your case diligently.
• 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.

How the police behave in such cases

It is important to understand that such disputes are primarily civil in nature. The police are generally reluctant to intervene in matters that appear to be a breach of contract rather than a criminal offence.

• Police will likely direct you to the civil courts, RERA, or consumer forums, stating that your case is a civil dispute.
• An FIR for criminal offences like ‘Cheating’ (Section 318 of the Bharatiya Nyaya Sanhita, 2023) or ‘Criminal Breach of Trust’ (Section 316 of BNS) may only be registered if you can provide strong evidence that the developer had a dishonest intention from the very beginning of the contract and never intended to honour the agreement. Proving this criminal intent is often difficult.
• Therefore, relying on civil remedies is usually the most effective path forward.

FAQs people normally have

Can I get both my money back and possession of the shop?
You can sue for possession of the shop and recovery of the unpaid assured returns. Getting a full refund of the purchase price while also taking possession is generally not possible; you typically have to choose one path. Your lawyer can advise on the best relief to claim.

Is this a criminal case?
Primarily, it is a civil case arising from a breach of contract. It can have criminal aspects if fraudulent intent from the outset can be proven, but the primary and most effective remedy lies in civil law, RERA, and consumer protection law.

Which is the fastest option: RERA, Consumer Court, or Civil Court?
RERA is designed for speedy disposal of real estate disputes. Consumer courts are also relatively faster than traditional civil courts. Civil courts are known for being the most time-consuming due to their extensive procedures.

What evidence is required?

To build a strong case, you will need to collect and present the following evidence:

• The Sale Agreement or Builder-Buyer Agreement for the shop.
• The specific “Assured Return” agreement or any clause in the main agreement promising it.
• All payment receipts and bank statements showing the amount paid to the developer.
• Bank statements showing the credited assured returns and when they stopped.
• Any communication from the developer regarding the new lease agreement and the revenue-sharing model.
• Statements showing the meagre payments received under the new arrangement.
• Copies of all emails, letters, and legal notices exchanged with the developer.

How long will the investigation take?

Since this is a civil matter, there is no “police investigation.” The duration depends on the legal forum you choose.

• RERA: Authorities are mandated to dispose of cases as quickly as possible, ideally within 60 days, but it can sometimes take longer, up to a year.
• Consumer Commissions: The process can take anywhere from 1 to 3 years, depending on the complexity of the case and the workload of the commission.
• Civil Court: This is the longest route and can take several years to reach a final decision, especially if there are appeals to higher courts.

Advocate Sudhir Rao, Supreme Court of India