Hi lovely people at IREF. An interesting story here, would love your suggestions.

Back in 2012 my parents decided to "invest" in an upcoming property for all the wrong reasons:

1. They coudn't affort the complete amount anyway. Plan was to sell it halfway after price increased in 2013. Bad idea.

2. They purchased it at a very high price direct from builder (Bestech). INR 6600 / sq ft when the average was INR 5,500 for the same units at that time.

3. No fall back plan if they werent' able to pay 100% of the amount by possession date.



Total: 1.9 Cr

Paid: 68 lac (35% paid)

Pending: 65% and lots of interest for non-payment.



Fast forward to 2015, stuck at 35% payment, they forgot about the unit. We live outside India.

I found out about the status recently.

Called the builder in 2019 and they have cancelled the appartment back in 2018, given the posession to someone else. They supposidly had mentioned this in postal mail, no emails or calls.

I understand this action from the builder's view point to a certain extent. Non payment can trigger cancellation, specially after watiing for years for payment.

However, the 35% is considerable amount still with the builder.



This is where the collective genious of you IREL folks comes in place:
Ideal Solution: I will transfer the contract from paretns to my name and try to negotiate something.

Option 1: I'd like to negotiate a deal for a commertual unit or residential but I can only put in INR 10 to 15 lacs. Instantly. Only if the risk makes sense. For me the 10 to 15 lacs is a lot of money saved for my own home in the future.

Option 1 Issue: The builder is mentioning, that as per contract we will have to forfiet 20% of the total amount! i.e. They will forfiet 38 lacs. (1.9 cr * 20%).

This means, 68 - 38 = 30 lacs would remain. On top of this, I would need to add about 50 to 70 lacs or more to buy anything from them.

I believe they should be taking 20% from our current payment. 68 * 20%. Even that's too much but I can understand the reasoning behind it.

Contract mentiones none of this. I cound't find the clause on first reading.

On phone, he asked me to visit Delhi and sort this out in person.



Option 2 (not ideal): Forget about the whole thing and let the 68 lacs go. Not ideal at all.

What would your suggestion be on how to approach this situation?
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  • Can u name the Project ? An thread may already exist on the Project. If an thread on the Project exists already, this thread would then be required to get merged with the original existing thread .
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  • Take whatever amount (max) you can from the builder and put it in FD for better and safe returns. :)
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  • Originally Posted by MANOJa
    Can u name the Project ? An thread may already exist on the Project. If an thread on the Project exists already, this thread would then be required to get merged with the original existing thread .
    Hi ManojA,

    I believe it's good to stay away from naming them for now. What do you suggest? Risk of naming the project may not be good for them.
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  • Originally Posted by varun_59
    Hi ManojA,

    I believe it's good to stay away from naming them for now. What do you suggest? Risk of naming the project may not be good for them.


    It may be good for you and some other users who may be stuck with this Project or in similar situations. Such guys can then have a discussion and maybe look for an collective solution.
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    2 Comments
    • MANOJa1 months ago
      I would suggest that you make similar posts in both the quoted threads and maybe that helps u out. Once u post in those threads, this thread would be then locked/closed and no further posts would be allowed here.