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Builder has transferred his interest to another builder after selling of flats

By: Shivendra Pratap Singh

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We have 500 families staying in society. 300 families got possession in the month of April 2019. After three months later our builder did a lease agreement with another builder to use our society road. Even other third party builder has road of 9 meter. To increase the floor size of the third party builder he showed our society’s road of 15 meter. The road is passing through our already constructed gate. It looks like changing the plan even though our builder did not take any consent from the allottee and he gave permission to them by saying the power of attorney he has. Also after that even he did not mention it in our agreement, not in the plan which was disclosed to us while buying.

Can a builder give permission to use our own society road to a third party due to his power of attorney, even if they have a road for their society to just increase the floor of the third party? What case can we file against our builder?

Our security of society is getting breached even with privacy and now the third party builder is sailing his top floor showing our own society road even though they are cheating their buyers. We are all the 500 plus family cheated by the builder when we bought the house. There was no plan to provide our own road to a third party by demolishing our own compound wall. Now he is saying I can do anything because he has rights.

Question from: Karnataka

Builder cannot convey its interest to another builder

When the builder has sold the flats to its allottees then he cannot transfer his interest in the property to another builder. It is illegal and has no legal implication over the flat owners. After completion of the project the builder should transfer his interest in the welfare society formed by the flat owners.

This is the procedure towards the transfer of share to the flat owners. Thereafter, the society, consisting of the flat owners, shall decide how to use the property in the welfare of the members. The society shall issue share certificate to the legal flat owners. An illegal flat owner cannot claim share therein. It is against the interest of the flat owners to introduce another builder after sale. 

File a complaint before the society registrar 

First of all your society should file a complaint before the society registrar for stopping the interference of builder in the daily business of society. The builder has the obligation to transfer the interest to the society. Thereafter, the society shall take further action or decision regarding the use of land.

Lodge an FIRThe society should also register a FIR before the local police for the offence of criminal trespass. The person other than the inmates of society has no right to use the road without permission of the society. If they are using the road on the behest of the builder then the criminal case is made out against him also.

shivendra pratap singh advocate

Shivendra Pratap Singh


Practising lawyer at the High Court Lucknow. You can consult on Criminal, Civil, Matrimonial, Writ, Service matters, Property, Revenue and RERA related issues.

Kanoonirai has been advising in legal issues since October 2014. You can consult a lawyer through online media, telephonic consultation and video conferencing.