27/08/2021
If a builder accepts more than 20 percent booking amount (of the value of flat) but fails to register the sale agreement, he commits an offence under Section 13 of the MoFA,1963. It is punishable with imprisonment of up to three years.
In addition to accepting money without registration, the builder can face criminal prosecution under MoFA for the following violations of law:
Illegally altering the floor plan specifications and amending building plans without buyer approval;
Failing to provide copies of approved plans, permissions, title documents to the homebuyer for inspection;
Failing to create a society of homebuyers after 10 flats have been booked in the project (a minimum of ten people are required to form a society);
Failure to convey ownership of land and common areas to the society after building construction is complete and possession of flats is given;
A criminal case under MoFA can be filed by two means. First is to register FIR in the local police station. Second is to by-pass the police and directly file a criminal complaint in the Magistrate’s Court under Sections 190 and 200 of the Code of Criminal Procedure, 1973.