prad_k_g_20@rediffmail.com
Asked December 24, 2015

Real Estate Agent cheated in investment in flats

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Hi, Real estate agent promised me a good return in investment in flats, agent said he has sole selling rights of 10 flats in one Builder project, if I invest agent will pay additional Rs. 500/per sq.ft on the current rate irrespective of market rate after 6 month, agent said all the payment will be done to him because he is taking responsibility and accordingly I mad payment to him through cheque for two flats(one on my name and other on my relative name), 30 % for one flat in oct 2013 and 100% for other in feb 2014. amount is approx. 14 lakhs, I have notary for both the flats with all the above conditions mentioned above between myself and agent, after further insisting agent provided me  two letter on builder letterhead mentioning 30% payment. after one year I tried to take loan for one flat but agent could not provide required document to bank, and then agent said the development rights has been transferred to new builder and agent is trying to recover money form builder. initially agent give me a new date that by this time I will give money after taking from builder, and he spent 3-4 months but not given single paisa, he moved to some other place, I contacted builder and builder said he has only given 1lakhs, later I found he is a cheater, he has taken money form many people, he has provided his sister address where he used to live early but he is not living there.I visited agent sister house, she said I don't know where he lives and what he does, pls advice how to take my money back and put agent behind bar so that he cannot cheat others.

Answer 1

Default avatar
Karan Mittal
According to facts of the case the agent only transmitted 1 lakh (out of the 14 Lakh deposit) to the builder. Firstly, to get back your deposit, you can send a legal notice to the builder demanding the deposit which you gave to his agent. Steps to send a legal notice: You can draft the notice yourself or avail the services of a lawyer.  The notice should be addressed to the person against whom you have the grievances (builder, since you can’t locate the agent). Mention the cause that compelled you to send the notice.  Mention previous communications regarding the cause of notice.  Offer the addressee a reasonable time, for example 30 days or 60 days, to settle the matter through negotiation and performance of specific action. Give time in notice for either fulfilment of your demand or giving reply.  Send it through Registered AD post. Please remember to keep a copy of receipt of post office as well as the notice.  You can personally send the legal notice without engaging the services of a lawyer,  but it is advisable to seek the assistance of a lawyer. Since the notice must be drafted meticulously and be concise containing all the material contents without being verboseDo not worry. Your demand of getting back the deposit from the builder is valid in law. Law pins the liability on the principal for the actions of his agents. Therefore, the builder would be liable for all the acts of his agent done during the course of his agency (which covers cheating and fraud as well).[1] Here it can be argued that the real estate agent represented himself to be the agent of the builder when he provided you the receipt of the amount on the builder’s letterhead. This in itself provides the agent apparent authority to act on behalf of the builder thus making the builder liable for his agent’s acts.[2] If the builder doesn’t reply to your notice or deniesto take the responsibility, legal action can be taken against him. You could file a case in the district consumer forum claiming deficiency of services and alleging unfair trade practice.[3] The important document which will help you in court is the agreement you had registered through notary. This document will serve as a proof that you have paid Rs. 14 Lakh to the agent as consideration for purchase of the flats/apartments. Hence you could claim that now, either the builder should return the deposit or provide you with the agreement of sale of the concerned flats (the document that the agent could not produce at the time you were seeking a loan from the bank). You can also file an FIR against the agent for cheating you, under Section 420 of The Indian Penal Code. This FIR can be filed in jurisdiction of the police station where his sister lives as this is the residence which he represented to the public to be his official residence.   [1] See Section 237 of Indian Contract Act. [2] Union Of India &Ors. vs George Mathew &Ors., NCDRC 2014. Available at : indiankanoon.org/doc/43219367/ [3] Under Sections 2(g) and (r) of Consumer Protection Act 1986.  
Agree Comment 0 Agrees 11 months ago

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