Complaint Details

Status	:	Closed
Complaint No	:	0002468/2012
Category	:	Real Estate
Date	:	28-10-2012
Subject Line	:	PAYMENT OF MVAT.UNDUE DEMAND FROM BUILDER
Complainant	:	SUBHAJIT MITRA
Address	:	B2 505 YELLOW BLOSSOMS HOUSING SOCEITY.BT KAWRE ROAD.GHORPADI.PUNE-36
Complainee	:	RAVIRAJ GROUP
Address	:	Office No. 1to5, Second Floor, Millenium Star, Near Ruby Hall,Dhole Patil Road

Complaint Details
I am a purchaser/customer of a flat in Yellow Blossoms scheme of Raviraj in Pune. The builder is asking for MVAT@ 5 % without any basis as per my understanding as follows:

1. No VAT breakup provided.As per Akhil Bhartiya Grahak Panchayat Once we pay stamp fee for the transaction of the immovable property, VAT cannot be recovered by the builder from us.Then on what ground builder is sending the demand letters?

2. VAT tax invoice/bill not produced as per the MVAT act as told by Akhil Bhartiya Grahak Panchayat, Pune

3. No mention of litigation with govt over MVAT in articles of agreement.The same was not communicated verbally as well. This constitutes unfair business practice at the time of sale. If the dispute with the govt was 2-way and customer was not made party to it making 3-way dispute, how can customer be made liable for outcome?

4. MVAT, as per all govt sources, should be between 0.5 to 1%. Builder is asking for 5 % . Morover the agreement to sale does not differentiate the cost of land and cost of construction which is essential
5. As per Akhil Bhartiya Grahak Panchayat, Pune, VAT matter is sub-judice with Hon High Court; hence no harsh demand notice can be issued with legal proceedings but the builder is continuing to send us demand letters

6. Builder is also delaying the process of executing “Conveyance Deed” even after 3years of possession.Without conveyance deed the flat owners are not lawful owner of the land and thus the “Sale deed” is still not made/executed.As per Akhil Bhartiya Grahak Panchayat Agreement to Sale, of the flat under construction, does not constitute SALE. It doesnot give the possession of the flat. It , does not give the title to the property purchased.It only assures the sale of the' property on certain future date and on completion of the construction of the flat.I feel very insecure reading all such material.

Pls do the needful to address the above since the builder is threatning with legal consequences in the notice.

Pls advice on next steps.

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