We paid a small token in cheque and rest in cash to a builder for 4 offices in a under construction property in andheri. the project has not seen the light of day since 2008. Now we hear that the builder has made a deal to sell the plot to the neighboring plot owner. how can we ensure that he does not get paid without compensating the investors ? Can he make us the payment in cheque since he will receive all cheque for this new deal. will we be taxed on it as we paid only a small token in cheque. how much should we expect ?
Answered on November 08, 2017
You have to file a suit and get an injunction against the developer from creating third party rights in respect of the offices sold to you and further that any agreement done by him in favour of a third party would be subject to your rights in the offices. Further, unless you are able to prove payments made in cash (if the same is disputed by your builder) then seeking compensation to that extent would be difficult. Further, any payment received from the developer in settlement of your claims in the offices would be liable for taxation. Same would be short term or long term gain depending on when you bought the offices and when you received money from builder towards the same.
