Monday, March 19, 2018

Builder Demands Rs.4,92,738/- In Cash, Refuse To Provide Demand Letter, Contravenes Maharashtra Gov’t Notification

In this day and age, when Indian Government has implemented stringent measures to deal with entities and individuals indulging in illegal cash transactions with deliberate intent to evade income tax, the Central Government thereby capped the minimum amount permissible as per law by also making it a criminal offence , even then the effect of such a measure doesn’t seem to scare the errant tax evaders.

The newly inserted section 269ST in the Income Tax Act bans such cash dealings.

“Contravention of Section 269ST would entail levy of 100 % penalty on receiver of the amount”

At the outset , controversies doesn’t seem to end for a Mumbai based builder; Ekta World promoted by Ashok Mohanani and Vivek Mohanani who are often seen advocating the Real Estate Regulatory Act on public forums, seminars, interviews with intent to portray the clean and law abiding image of their Co.

However, given the umpteen controversies which have surrounded the said builder, all such attempts made by the promoters of Ekta World appears to be nothing but misleading enough to cheat their customers and Indian Government. Interestingly, this builder also has another overseas office in Dubai.

It has come to light that one of the customer of Ekta World ( Ms Sneha Naik – Name Changed ) on making repeated requests to obtain NOC – No Objection Certificate, in order to re – sell her flat has been demanded Rs.4,92,738/- in CASH.

Ms. Naik eversince , then has been going through harassment by the said builder , who doesn’t seem to think twice on it’s illegal and unfair trade practices by demanding such huge amount in cash from it’s customer.

As per Ms. Naik , the said builder has refused to provide her the NOC , for which the said builder has made a prerequisite prior to selling the flat.

Furthermore , the said builder has also refused to provide the demand letter for Rs.4,92,738/- demanded in cash from Ms. Naik however on insisting , this builder has provided the detailed hand written break up of the said amount demanded in cash by citing such demand under two heads :


The said hand written document is incorporated herewith in this News Article.

The said builder is determined for not providing the NOC to Ms. Naik until the said amount is paid in cash.

In the year 2012 , The State Housing Department of Maharashtra Government governed by then Chief Minister of Maharashtra – Prithviraj Chavan had issued a Statutory Notification pertaining to NOC and Conveyance Deed in public interest by categorically stating such a practice as an illegal means to extort money from flat owners seeking NOC’s from the builders who charge hefty amounts in cash.

Chavan had said , “Such illegal activities of pressurising flat owners to seek NOC must be stopped”

Till today , flat owners are forced to secure the NOC from builders for reselling their flats.

The said notification was issued to put an end to financial exploitation by unscrupulous builders.

Social Post News is incorporating the said Statutory Notification pertaining to NOC and Conveyance Deed issued by Maharashtra Government in public interest.

It has also come to light that , despite the said Statutory Notification issued by Maharashtra Government , Ekta World has still incorporated the abusive and illegal clauses pertaining to NOC and Conveyance Deed in it’s Builder Buyer Agreement which says ;

“The Society shall function as per the rules and regulations framed by the Developer. All the development potential of the said Land / said Larger Property including the existing and future FSI and/or TDR to arise in any manner whatsoever shall always stand vested in the Developer and the Developer shall be entitled to utilize and exploit the same on the said Land/ said Larger Property or any part thereof and/or upon the buildings constructed thereupon in such manner as it deems fit before or post execution of the said transfer documents”.

“Till the formation of the Society and the conveyance of the said Land to the Society , the Purchaser shall not be permitted to sell , transfer , lease and/or license and/or part with the possession of the said Unit or any part thereof without the prior written consent of the Developer”.

“The Purchaser shall not sell the said Unit or any portions thereof to any one whomsoever, without the permission in writing of the Developer..

“Nothing contained in this Agreement is intended to be nor shall construed or claimed by the Purchaser as a grant , demise or assignment in law of the building or any part/s thereof and/or of the said Land or any part thereof. The Purchaser shall have no claim in respect of all open spaces , lobbies , stair cases , terraces , recreation space etc will remain in the possession of the Developer. All development rights with respect to the same shall remain with the Developer”.

“The rights retained by the Developer under this Agreement in terms of exploitation of the present and future development rights with respect to the said Land shall continue even after the execution of the Deed of Conveyance and/or after the statutory vesting of the said Land in favor of the Society and the same shall be reserved therein in terms of covenant and undertaking of the Society to Developer”.

It is apparent that , this unscrupulous builder has found another ways and means to extort money from it’s customers in lieu of fungible FSI – Increase in Area and Infrastructure Charges on pretext of providing NOC to it’s customers.

It’s yet another glaring irregularity which has come to light to further caution prospective homebuyers to take informed decision , not fall into the trap and to inform Income Tax Department to further keep vigil on such a errant builders.

It has also come to light, that in recent past a formal plaint was filed on Aaple Sarkar Portal introduced by CM – Maharashtra – Devender Fadnavis citing similar irregularities committed by Ekta World however the said plaint was soon closed with intent to shield the said errant builder and further brushed aside.

Social Post News is incorporating Press Releases issued by Maharashtra Government which was further covered in Media to further authenticate the said contents.

Links of such news can be accessed here..

‘Developer’s NOC not required for sale of flats’ – Business Line
No need of developer’s NOC for sale of flats in Maharashtra
NOC not required from builder to sell your flat | mumbai | Hindustan
Maharashtra ends system of NOC – Indian Express

In view of the said development, it remains to be seen if the Honb’le Finance Minister, Director General of Income Tax – Criminal Investigation and it’s Field Officers will initiate action against the said builder or this builder will once again be allowed to go scott free to further cheat homebuyers and the Indian Government ?