One of my friends informed me that Pride Purple has started sending VAT notices which mentions that they will be cancelling the sale agreement since VAT has not been paid after repeated reminders and they are giving one last chance to pay

Can someone from Park Street/ Park Royale or any other pride purple project tell us what you guys are doing about this? Has anyone taken legal opinion on this? This looks like plain extortion tactics by the builder.
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  • Auction Auction Auction....of park royale flats by builder if flat owners dont pay VAT....

    Pride Purple Cancelled all the flat agreements by dropping a letter near flat doors:bab (59)::bab (59)::bab (59)::bab (59):
    Below letter they sent to all flat owners.......looks like soon they are going to auction all the flats...



    Ref No : AC/ Flat No--------- /12-13
    Date :- 04/04/2013
    Termination Letter
    To,
    Customer Name
    Flat No.---------,S.NO 14/15, PARK ROYALE
    Rahatani, Opposite Park Street, Wakad,Pune - 411057
    Ph No : 0
    Mail ID : 0
    Sub: Flat No. at Park Royale, Wakad at Pune
    Sir, This is in reference to your default in payments towards VAT due amount, against your Flat No. --------- at Park Royale, Wakad at Pune as on date the VAT dues outstanding against the said Flat is of Rs.--------------/-

    With this notice as per your Agreement To Sale dated -----------, registered vide No ------------ pertaining to your Flat No.---------------at Park Royale, Wakad at Pune is hereby terminated as you have defaulted & failed to comply with the payment of balance VAT outstanding amount of Rs. -------------/- despite intimation letter and demand notice issued to you from time to time.

    As a last chance we hereby once again call upon you for making the due payment on or before 20th April 2013 or else we will deal with and /or dispose of the said Flat by sale or otherwise at your risk & consequences which kindly be noted.

    Also note that we have informed the concern bank, through which you have availed the housing loan, about termination of your agreement and cancellation of said flat.
    Thanking you,

    Yours truly,
    For Rainbow Housing

    Authorized Signatory
    Cc : 1) Society registrar Office
    2) The Mortgagee Bank
    Note for Bank: Please kindly note that your charge upon the said flat has been removed due to termination of agreement of borrower.
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  • Agreement date

    Originally Posted by lazybone007
    One of my friends informed me that Pride Purple has started sending VAT notices which mentions that they will be cancelling the sale agreement since VAT has not been paid after repeated reminders and they are giving one last chance to pay

    Can someone from Park Street/ Park Royale or any other pride purple project tell us what you guys are doing about this? Has anyone taken legal opinion on this? This looks like plain extortion tactics by the builder.

    When were these agreements entered into? Was there a clause in which buyer had specifically taken up the responsibility of VAT? Not a general clause for any taxes/duties levied subsequently by Government.This clause covers only new impositions which is the responsibility of buyer.VAT is builders baby and cannot be transferred to buyer,unless there is special term in agreement and not by general clauses.
    Case is fit for getting stay from Civil court. The case is still going on in Honble SC and clarity will come after that,Builders should not try hard tactics against buyers.
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  • Cancellation of registered agreement

    I dont think a registered agreement can be cancelled unilaterally without intervention of civil court.This kind of direct letter to bank have limited value.Take legal advice and tackle the issue.
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  • agree with Vaibhav123. Also biased and one sided agreements don't hold in court. Builder will try his best to settle outside since he knows this.

    As per reports floating around in media paying VAT is builders responsibility and not the customers responsibility. It would be better if all members together approach Consumer Court rather than Civil court since justice is fast and smooth there.
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  • Don't pay any VAT to these purple chaps, even if they turn red.
    Let him just take such action & it will be big news in media & entire machinery then will come against him. When a dog keeps barking, either give him biscuit but he may still bark more or throw chappal or stone towards it.
    Now the dog is barking, its upto you to decide what to do. But we all know what needs to be done when dog turns mad.

    Just sleep over this issue & give sleepless nights to the builder. :D And flat buyers here need not worry, the builder can't do anything to you as VAT liability is not of buyer in anycase. The builder will try to misguide, threaten or twists facts, but don't pay attention to it. When big builders in Mumbai have given up collection of VAT, this pride purple is not even broken brick in front of them .
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  • VAT Collection

    Writing letters to bank about unilateral termination of agreement puts the buyer who has taken a loan in bad light.Bank gives loan based on buyer profile,strength,job etc.
    The builder should not do such things which puts buyers in poor light.
    The original flat papers will be with bank,Property is mortgaged to bank.Can builder remove the charge.
    They must have been ill advised to take such actions.
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  • Got similar letter for my flast in kharadi - rakshaknagar gold

    Eevn I got a similar sounding 'threatning' letter from the builder today. But what made me laugh was that in last line they mentioned that they have informed the bank on termination of my agreement and cancellation of flat - basically letting me know that your hosuing loan is in risk. JACK ASS Raviraj group - I don't even have a housing LOAN lol.....:D Dear Raviraj. Take your Termination mass mailer letters and shove it in your big fat ass coz no one will be paying you VAT. :D:bab (59):
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  • RE humor

    Originally Posted by anand2011
    Pride Purple Cancelled all the flat agreements by dropping a letter near flat doors:bab (59)::bab (59)::bab (59)::bab (59):
    Below letter they sent to all flat owners.......looks like soon they are going to auction all the flats...



    Ref No : AC/ Flat No--------- /12-13
    Date :- 04/04/2013
    Termination Letter
    To,
    Customer Name
    Flat No.---------,S.NO 14/15, PARK ROYALE
    Rahatani, Opposite Park Street, Wakad,Pune - 411057
    Ph No : 0
    Mail ID : 0
    Sub: Flat No. at Park Royale, Wakad at Pune
    Sir, This is in reference to your default in payments towards VAT due amount, against your Flat No. --------- at Park Royale, Wakad at Pune as on date the VAT dues outstanding against the said Flat is of Rs.--------------/-

    With this notice as per your Agreement To Sale dated -----------, registered vide No ------------ pertaining to your Flat No.---------------at Park Royale, Wakad at Pune is hereby terminated as you have defaulted & failed to comply with the payment of balance VAT outstanding amount of Rs. -------------/- despite intimation letter and demand notice issued to you from time to time.

    As a last chance we hereby once again call upon you for making the due payment on or before 20th April 2013 or else we will deal with and /or dispose of the said Flat by sale or otherwise at your risk & consequences which kindly be noted.
    .
    Also note that we have informed the concern bank, through which you have availed the housing loan, about termination of your agreement and cancellation of said flat.
    Thanking you,

    Yours truly,
    For Rainbow Housing

    Authorized Signatory
    Cc : 1) Society registrar Office
    2) The Mortgagee Bank
    Note for Bank: Please kindly note that your charge upon the said flat has been removed due to termination of agreement of borrower.


    This master piece of drafting needs to be placed in RE Joke section.
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  • Does this kind of letters have any legal standing, absolutely NO. So ideally, flat owners should not worry over such letters. But as an advise, you can send a letter to builder seeking details on MSEB and infra charges, etc. These details will never be provided by builder and you can always say that since he has not responded, you are not liable to pay.
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  • I discussed this with my lawyer just now. He is a very senior high court lawyer.

    Here is his advice:
    Read the sale agreement provided by the builder and signed by you.

    Checkpoint #1: Does it mention specifically that all future govt levies/cess/taxes would be buyer's responsibility?

    Option #1 If it does not mention that: then you are free to not pay anything. In fact you can send the builder a counter legal notice and claim Rs1cr for mental agony and harassment.

    Option #2
    If it does mention that: Then read the checkpoint #2 below.

    Checkpoint #2: Does it mention specifically if the buyer does not pay all future govt levies/cess/taxes, then what is to be done in this regards?

    Option #1:
    If it does not have any specific clause, but still if it is mentioned that it is your liability. then the builder has to file a lawsuit for "specific performance" in the courts, and the court will decide if you have to pay this or not, it would be long process for 2-10 years, you can rest easy at home. But if the builder cancels it unilaterally, legal position is that the agreement cannot be cancelled. despite that if he cancels the agreement u can file a suit for specific performance within three year of his notice cancelling the document.
    No matter what, he can not evict you from the house, or resell your house. It would become a criminal offense.

    Option #2: If it has a specific clause that mentions that the sale agreement is terminated in such cases, then you are in real trouble. Then you do not have any legal standing. Better pay up your due VAT :) that mentions that the sale agreement is terminated in such cases, then you are in real trouble. Then you do not have any legal standing. Better pay up your due VAT :)
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  • legal advice on VAT

    Originally Posted by humble_guy
    I discussed this with my lawyer just now. He is a very senior high court lawyer.

    Here is his advice:
    Read the sale agreement provided by the builder and signed by you.

    Checkpoint #1: Does it mention specifically that all future govt levies/cess/taxes would be buyer's responsibility?

    Option #1 If it does not mention that: then you are free to not pay anything. In fact you can send the builder a counter legal notice and claim Rs1cr for mental agony and harassment.

    Option #2
    If it does mention that: Then read the checkpoint #2 below.

    Checkpoint #2: Does it mention specifically if the buyer does not pay all future govt levies/cess/taxes, then what is to be done in this regards?

    Option #1:
    If it does not have any specific clause, but still if it is mentioned that it is your liability. then the builder has to file a lawsuit for "specific performance" in the courts, and the court will decide if you have to pay this or not, it would be long process for 2-10 years, you can rest easy at home. But if the builder cancels it unilaterally, legal position is that the agreement cannot be cancelled. despite that if he cancels the agreement u can file a suit for specific performance within three year of his notice cancelling the document.
    No matter what, he can not evict you from the house, or resell your house. It would become a criminal offense.

    Option #2: If it has a specific clause that mentions that the sale agreement is terminated in such cases, then you are in real trouble. Then you do not have any legal standing. Better pay up your due VAT :)
    Generally builders put in an ominbus clause regarding future levies/taxes etc and pass it on to buyers..But in case of VAT which had been disputed during the period 2006-10, when such ominbus clause is introduced,it is legally incumbent on builder to reveal details of pending legal dispute-contingent liability which was known to builder but not to buyer.
    Hiding behind ominbus clauses when dispute was specific is legal subterfuge.Builder should have announced the fact of this dispute and pending position with court/Govt and then enter into agreement of sale.
    VAT is an indirect tax and falls on builder.
    If such things were all that easy all builders would have filed or recovery suits against buyers.
    Generally builders put in an ominbus clause regarding future levies/taxes etc and pass it on to buyers..But in case of VAT which had been disputed during the period 2006-10, when such ominbus clause is introduced,it is legally incumbent on builder to reveal details of pending legal dispute-contingent liability which was known to builder but not to buyer.
    Hiding behind ominbus clauses when dispute was specific is legal subterfuge.Builder should have announced the fact of this dispute and pending position with court/Govt and then enter into agreement of sale.
    VAT is an indirect tax and falls on builder.
    If such things were all that easy all builders would have filed or recovery suits against buyers.
    Generally builders put in an ominbus clause regarding future levies/taxes etc and pass it on to buyers..But in case of VAT which had been disputed during the period 2006-10, when such ominbus clause is introduced,it is legally incumbent on builder to reveal details of pending legal dispute-contingent liability which was known to builder but not to buyer.
    Hiding behind ominbus clauses when dispute was specific is legal subterfuge.Builder should have announced the fact of this dispute and pending position with court/Govt and then enter into agreement of sale.
    VAT is an indirect tax and falls on builder.
    If such things were all that easy all builders would have filed or recovery suits against buyers.
    Generally builders put in an ominbus clause regarding future levies/taxes etc and pass it on to buyers..But in case of VAT which had been disputed during the period 2006-10, when such ominbus clause is introduced,it is legally incumbent on builder to reveal details of pending legal dispute-contingent liability which was known to builder but not to buyer.
    Hiding behind ominbus clauses when dispute was specific is legal subterfuge.Builder should have announced the fact of this dispute and pending position with court/Govt and then enter into agreement of sale.
    VAT is an indirect tax and falls on builder.
    If such things were all that easy all builders would have filed or recovery suits against buyers.
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  • Hello folks,
    My builder has sent the second "Termination Letters" to the flat owners(most of us have not yet paid and are united) which mentions the clauses of our agreement which talks about paying VAT is our liability at any point of time and if not paid then the clause mentions termination of agreement.
    The letter says that society registrar office, the mortgage bank, pcms commissioner and MSEB department is communicated about this termination.
    I know this sounds funny... but
    At this stage when we have received the partial completion certificate. Society is formed, but the conveyance is yet to be done.
    If the conveyance is not yet done then can they really do this when the matter itself is still in dispute at courts ?
    There are also some pending work to be finished and we are demanding for the same... but the builder is demanding VAT now and then pending work will be done.
    btw do we have any lawyer on this forum who can give a correct advice for this situation ?
    Any advice will help though..
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  • Contact grahak panchayat, Pune at Tilak road. They will help you.
    And matter is subjudice in SC, strange builder acts so idiotically. They think buyers are playgroup kids or something ? :D
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  • VAT demands should not be met till court rulings are final. Honble SC has yet to give final ruling.Without completing pending jobs demanding VAT is unprofessional act.BUt the general idea of such notices is create pressure and some customers may pay out of sheer fear and ignorance or just to avoid legal hassles for Rs40-50000.At any rate a buyer is squeezed by taxes when buying a flat-Service tax,VAT,Registration,Stamp Duty and deposits for MSEB
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  • Originally Posted by vaibav123
    VAT demands should not be met till court rulings are final. Honble SC has yet to give final ruling.Without completing pending jobs demanding VAT is unprofessional act.BUt the general idea of such notices is create pressure and some customers may pay out of sheer fear and ignorance or just to avoid legal hassles for Rs40-50000.At any rate a buyer is squeezed by taxes when buying a flat-Service tax,VAT,Registration,Stamp Duty and deposits for MSEB

    Buyers must not give in to the pressure. If Pride Purple is harassing the buyers by sending termination letters, buyers must unite and take this to court. Its time to teach such unscrupulous builders a lesson that customers cannot be taken for a ride every time.
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