I booked a plot in Ansal API
"Sushant Megapolis" project. The booking was done at Ansal Corporate office located in K G Marg, New Delhi on Feb'06 2012; I paid 2.65 lakhs as booking amount and signed a 2 page booking document. The lady who took my booking (Mansi Malhotra) told me that she will send me Agreement document in two weeks and if after reading the Agreement I decide to cancel the booking, they will deduct the "Earnest Money" and return the rest to me (she told me that earnest money is 20% of booking amount which is approx 52K rupees, Earnest money wasn't defined on booking document). I started following up about the Agreement papers from February but ANSAL didn't respond (I have email communications). Meanwhile they sent second installment request in April. I again inquired about Agreement document and they said its still under preparation and I should send the money to avoid any delay penalty. I paid 2nd installment (Rs 2.81 lakhs) in March 2012.
Again ANSAL sent the request for third installment in May 2012, withotu sending the "Agreement" papers, I emailed them that I am not going to pay until I receive Agreement papers.
Finally they sent the Agreement documents and by looking at it, I decided to get out of it. It had several points which I wasn't told. Here are main points which surprised me -
1. Agreement paper says that I will have to pay extra 12% of basic price (approx 6 lakhs) money to convert the plot from leased to freehold.
2. Earnest money definition is 20% of basic price (approx 11 lakhs). At the time of booking the lady told me that earnest money is 20% of booking money (approx 52K) and only this much will be deducted if I decide to cancel the booking.
3. Agreement doesnt talk about possession. There is no clause about delay penalty that developer will pay if they delay.
4. Agreement says that DEVELOPER (ANSAL) can change plot size, location , direction if they find its necessary for the project and I cant say anything.
5. There are several charges mentioned under "PREMIUM CHARGES" that developer can ask me to pay.
6. Here are few other clauses -
ALTERATIONS IN LAYOUT PLAN
a. That the "PLOT" of land allotted to the ALLOTTEE(S) is based on the approved layout plan but if there is any change of location due to unavoidable circumstances then the ALLOTTEE(S) will accept the equivalent alternative arrangement made by DEVELOPER/SPV without claiming any compensation.
b. That any increase or decrease in the area of plot up to 10% of the original allotted area shall be acceptable to the ALLOTTEE(S) and the price shall be computed at the booking rate. However, in case increase/decrease of the area beyond 10% of the original allotted area, the DEVELOPER/SPV shall have the sole discretion to decide the rate, which shall be binding upon the ALLOTTEE(S) and shall be payable accordingly. In case the particular "PLOT" is omitted or the DEVELOPER/SPV is not able to hand over the "PLOT" to the ALLOTTEE(S), the DEVELOPER/SPV shall be responsible only to refund the actual amount received by it and shall not be liable to pay any compensation or damages or interest thereon whatsoever.
c. ACQUISITION OF LAND BY GOVERNMENT
That at present, there is no subsisting notification or order of the State Government or any other Government or Local Authority regarding acquisition or requisition or otherwise for taking over o the area in which the "PLOT" is located. In case any such development takes place hereafter, the same shall be the cost and risk of the ALLOTTEE(S), who will be bound to carry out and implement all the terms of this Arrangement including payment of outstanding installments and will also thereafter be entitled to receive the compensation paid from the Government/Authority in respect of the "PLOT". The DEVELOPER/SPV will not be responsible or liable in any manner whatsoever on account of any such development.
d. RIGHTS OF DEVELOPER/SPV TO RECOVER INCREASED AMOUNT OF COMPENSATION AND/OR CHARGES LEVIED BY THE GOVERNMENT.
The DEVELOPER/SPV has acquired land directly from the farmers by paying the market price. However there might be certain pieces and parcel of land which might not have been bought by the DEVELOPER/SPV. In terms of the policy of the Government for the development of Hi-Tech Township, such piece or parcel of land falling with Detailed Project Report and the sanctioned Detailed layout plan is to be acquired by the Government for DEVELOPER/SPV and to be handed over to the DEVELOPER/SPV for the development of Hi-Tech Township.
The DEVELOPER/SPV shall have the right to recover any increased amount of compensation payable to Bulandshahar Development Authority, Bulandshahar or any other authorities in future on account of decisions of Courts/Tribunals for the land given to the DEVELOPER/SPV by Bulandshahar Development Authority, Bulandshahar and the same shall be recoverable from the ALLOTTEE(S) of the land as and when intimated to them. The amount shall also include cost of litigation incurred by the DEVELOPER/SPV and/or Bulandshahar Development Authority, Bulandshahar.
Further if any major infrastructure charges such as embankment, ring road, flyover, electricity distribution, metro charges/cess etc. is levied by nodal agency, Uttar Pradesh State Electricity Board or any other Authority(ies) or Local Body(ies) or the state Government during project period, consequent to which the proposed township will directly benefited, the ALLOTTEE(S) shall pay proportionate charges of such infrastructure on pro-rata 38245455basis to the DEVELOPER/SPV, as and when demanded by the DEVELOPER/SPV.
Who in his right mind would sign such an agreement. There are several other clauses which are completely contrary to what their Sales Manager (Maansi) told me at the time of booking. When I talked to Mr. Vikas Jain (AGM- Marketing), he says that either I should sign and send the "Agreement" back or he will forfeit my 5.5 lakh rupees. I am shocked and feel cheated by the way these organizations are trying to make money.