Real Estate - GOWO — Unauthorized cancellation of booking of an apartment by builder
JJ K AGrawal
Government Official’s Welfare Organization (GOWO), an organization registered under registration No. 1782 in addl book No. 4 Vol No. 2617 issued an ad in ‘The Times of India’ on May 15, 2010 for sale of a few residential apartments which they would be constructing in sector 37-C of Gurgaon in collaboration with a builder. The apartments are open for sale only to serving and retired government and public sector employees and their family members.
In my capacity as a family member (son) of Shri J. K. Agrawal, DGM (IT), NTPC Ltd., I entered into a deal with GOWO on May 18, 2010 to buy an apartment from them at their advertised ‘escalation-free’ price of Rs. 65.9 Lakhs by signing an undertaking and by paying Rs. 7.1 Lakhs as the first instalment which consists of 10% of the price of the apartment and an additional amount of Rs. 50,000/- which is adjustable in the price of the apartment. As per the terms of the deal, the remaining payment is to be made by me to GOWO as per a Construction-Linked Payment Plan (CLPP) in 12 additional instalments of varying amounts upon completion of various stages of construction. The second instalment constituting of 10% of the price of the apartment will be due when the project becomes bankable, i.e., when the Builder-Buyer agreement is signed which is expected to take about 3 to 4 months. Additionally, I am also liable to pay an amount of Rs. 2.5 Lakhs to GOWO for car parking. Registration fee and IFMS are also extra as per the deal.
However, on June 14, 2010, i.e., within less than just one month of signing the deal, GOWO sent a letter to me informing me about an increase in the price of my apartment from Rs. 65.9 Lakhs to Rs. 67.9 Lakhs, i.e., by Rs. 2 Lakhs, asked for signing of a revised undertaking as per the new price of the apartment and demanded an immediate interim payment of more than Rs. 5.8 Lakhs which is nowhere listed in CLPP.
GOWO has presented the following apportionment of the price of my apartment in their letter:
Total Amount Builder’s portion Taxes GOWO’s share
(Rs.) (Rs.) (Rs.) (Rs.)
Already paid 7,10,000 6,38,560 - 71,440
Outstanding 60,80,000 47,54,912 9,92,128 3,32,960
Total 67,90,000 53,93,472 9,92,128 4,04,400
I have been asked to pay the full outstanding amount of GOWO’s share, i.e., Rs. 3,32,960/- latest by July 31, 2010, i.e., within one month. Additionally, GOWO has also asked me to pay the parking charges in full, i.e., Rs. 2.5 Lakhs, by the same date. The total immediate payment demanded by GOWO is Rs. 3,32,960/- + Rs. 2,50,000/- = Rs. 5,82,960/-. I do not have this money available with me. I cannot get bank loan to pay this amount since GOWO has not made the project bankable.
GOWO is making threatening phone calls to me and threatening me to pay the additional amount and asking me to come to its office so that its office bearers can pressurise and force me to sign the revised undertaking accepting the revised price of the apartment.
Most interestingly, GOWO has enclosed an unsigned chit with its letter in which it has asked me to sign the revised undertaking. The actual letter of GOWO does not say anywhere that the price of the apartment has been increased. GOWO does not want to leave a record of the modification in the apartment’s price.
Due to the above letter of GOWO, following questions arise:
1. How can GOWO demand full payment of its share in the price of the apartment at this stage itself? This was not stated in GOWO’s ad or made known to me at the time of booking the apartment.
2. Why GOWO is demanding parking charges at this stage? It is neither necessary nor possible to make the parking at this stage. Parking charges are always payable just before taking over the possession of the apartment.
3. GOWO has not mentioned in its letter how this extra money demanded by it will be adjusted in the CLPP.
4. Since GOWO wants to take all its money immediately, what is the guarantee that it will not move out of the project and leave me at the mercy of the builder who may not recognize me since I have never dealt with him directly?
5. What is the guarantee that in future, GOWO will not make additional unjustified demands for money or put other unreasonable conditions on me?
6. GOWO’s letter states that the payment to Haryana government is construction linked. However, they have not paid anything to the government out of the first instalment.
I am afraid that GOWO may unilaterally cancel my booking if I do not meet their demands. They have done this in the past for others. They simply refund the booking amount without interest by depositing it through ECS in the bank account of a member who refuses to meet their unjustified demands without any written or verbal communication with him and cancels his booking. They can do this in my case also. Or they can just strike out my name from their books and consider my booking as cancelled. I, will, then be running from pillar to post even for getting my money back. Such is the highhandedness of GOWO. They do not obey any rule, agreed terms or conditions and are just not afraid of any law or court. GOWO is saying that many people are queuing up in their office for buying my apartment and are ready to meet all their demands and pay any price for it.
GOWO says that it is a “Welfare Organization” for government servants and PSU employees and it is engaged in providing affordable housing to its members. Most of the office bearers of GOWO are ex-servicemen.
1. Capt. (Retd.) Udaal Singh – [protected]
2. Col. (Retd.) B. K. D. Sharma – [protected]
3. Col. (Retd.) C. D. Sharma – [protected] (Project Director)
4. Col. (Retd.) Sam Lakhanpal – [protected],[protected],[protected]
5. Commander (Retd.) Kuldeepak Mittal – [protected], [protected]
1. UG-20, Ansal Chamber II, Bhikaji Cama Place, New Delhi – 110066.
2. K-36-B, Sheikh Sarai Phase II, New Delhi – 110 017.
3. B 2/87, Safdarjung Enclave, New Delhi – 110 029.
4. 905, Vijaya Building, Barakhamba Road, Connaught Place, New Delhi – 110 001.
What should I do now?
PS: As feared by me, GOWO has deposited Rs. 7.1 Lakh in my account on 27/7/2010 without any verbal or written communication with me, thus, cancelling my booking.
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