To cancel deal NOC needed from broker. Broker not giving it. Remedy?

In Property Law

Builder has increased the area and price of a flat bought under construction and is refusing to cancel the deal now. We had bought a flat in Gaur City wherein the flat was of 960 sq. feet and recently we are told that the area has been increased to 1040 sq. feet.

We do not wish to continue with the deal as we are unable to pay the increased price, but the builder is not canceling the deal and asking us to get the NOC from the broker through whom the deal happened in order to cancel the deal.

The broker is not giving the NOC. What can we do?

Answers (1)

168 votes

This is a a very common situation being faced by a number of investors.

We would be in a better position to guide you if we could examine the Agreement of Sale of the flat. A number of such contracts provide as to who shall bear the costs in case of price escalation during the period of construction. There are other provisions that deal with the liability for payment of taxes, cess etc and in case there is an increase in the same. However, there is generally no provision that allows the builder to increase the price of the area. Hence, we would like to mention that the builder cannot unilaterally alter / increase the price of the area and demand the same once the agreement has been signed.

Such an act on the part of the builder amounts to breach of the provisions of the contract and hence can be challenged. Such a breach on the part of the builder is liable to be challenged in the court of law. The Supreme Court has held that a consumer has the right to approach the Civil Court or the Forum under the Consumer Protection Act for relief in a situation where the builder commits breach of his obligations.

The court shall either order specific performance of the contract and direct the builder to deliver the possession of the flat at the rate fixed in the Agreement or it may allow you to repudiate the contract.

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