1).STRRPA APPROVED SITE AT DEVANAHALLY.Close to Cargo Road and Proposed STRR (Satellite Town Ring Road) 1,300 sft. Clear Titles. Gated Community. Adjacent to the village. Single owner. clear title. No loans on the property. Loan available.DC CONVERTED. LAYOUT APPROVED BY STRRPA. E-KATHA.

2). Apartment at Devanahally, Hirananadani, 1st floor, 1500 sft of super built up area, ready for occupation. Single owner. clear title. No loans on the property. Loan available. D.C.CONVERTED AND APPROVED BY BIAAPA. E-KATHA.

3). BDA Approved site on Sarjapur Road, close to Wipro with all amenities. Clear Titles. No Loans. 90% sold. 40X60-2400 feet site available for sale. Loan available. D.C.CONVERTED AND APPROVED BY BDA. BDA KATHA.

4). Villa measuring 3,000 sft on Sarjapur Road, Approved layout. Clear Titles.D.C.Converted and approved. Single Owner.

5). 2 BHK & 3 BHK apartments with CC and OC (by Dec-2019) in Uttarahally, Raja Rajeshwari Nagar, Bangalore, Available for sale. Clear Titles. No Loans. Loans available. Ready for occupation by November,2019.BBMP GENUINE `A` KATHA AFTER THE PURCHASE.

6). Apartment at Shankarpuram main road, First Floor, 2400 Sft of Super Built Area, ready for occupation. Clear Title. Single Owner with all amenities. BBMP `A`KATHA.

7). Excellent residence at BSK 2nd Stage, 80 feet road, BDA site, west facing, 4000 sft residential building, single owner is for sale.BBMP `A` GENUINE KATHA.

8). 8000 sft of single site on Sarjapur Road, near sports city, D.C.CONVERTED, LAYOUT APPROVED BY STRRPA, clear titles, vacant possession, no loans, single owner with E-KATHA.

9). BDA approved sites near NICE ROAD, close to Mysore Road, in BSK 5 & 6 Stage, D.C.Converted, with GENUINE BBMP A KATHA, up to date tax paid, no loans, single owner, 3 sites measuring 1,300 sft, 2,000 sft (corner site) 2,200 sft(corner site). Close to Hemmigepura. (BBMP Limits) Loan available.

Bangalore Real Estate Market Trends

The Real Estate in and around Bangalore is in STABILITY MODE and the prices of the properties is not in upward swing and there is very limited demand for the apartments.

There is almost a huge number of properties are being attached or seized due to the defaulted payments and the number of properties auctioned are also increasing.

The first time residential buyers have more option and at a bargain prices. But, the marketing teams and professionals might not provide them the luxury of the present day prices.

For investors, 2020 may be a good period to begin with.

The return on investments on residential properties bought between 2015 to 2019 might be around 1% to 4% and the capital appreciation is very minimal.

Golden Girl P.V.Sindhu Puts INDIA in the World Map

PV Sindhu became the first Indian to win the BWF World Championships, crushing Japan’s Nozomi Okuhara 21-7, 21-7 in just 38 minutes in a one-sided final on Sunday.



The Real Estate Market in Bangalore is very volatile. It is the right time to buy the properties with caution. The buyer appears to have an higher hand in the negotiations. The leading builders are not yielding to the pressure to sell, but middle class and other developers are yielding to the market pressure and have reduced the prices.

The returns or the rent on properties is just 1% to 5% on residential and 1% to 3% on industrial properties and 2% to 8% on commercial properties.

But, beware of properties on RAJA KALUVE AND LAKES. Anyday, the buffer zone may breach the existing or the present extent, as there may be a petition/application submitted to the Apex Court for revision.


It is strongly advised to thoroughly check the details and the procedure on which the katha of the properties obtained from BBMP. It is found that many A kathas are issued for illegal and unauthorised buildings in the BBMP limits.



Budget 2019 has proposed to increase the deduction that can be claimed for interest paid on loans taken for affordable housing by Rs 1.5 lakh to Rs 3.5 lakh per annum for houses valued up to Rs 45 lakh. The deduction is available on loans taken up to March 31, 2020.


Key Highlights of Union Budget 2019-20

July 5, 2019

The Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman made her maiden Budget Speech today and presented the Union Budget 2019-20 before the Parliament. The key highlights of Union Budget 2019 are as follows: 10-point Vision for the decade

 Building Team India with Jan Bhagidari: Minimum Government Maximum Governance.

 Achieving green Mother Earth and Blue Skies through a pollution-free India.

 Making Digital India reach every sector of the economy.  Launching Gaganyan, Chandrayan, other Space and Satellite programmes.  Building physical and social infrastructure.

 Water, water management, clean rivers.  Blue Economy.  Self-sufficiency and export of food-grains, pulses, oilseeds, fruits and vegetables.

 Achieving a healthy society via Ayushman Bharat, well-nourished women & children, safety of citizens.

 Emphasis on MSMEs, Start-ups, defence manufacturing, automobiles, electronics, fabs and batteries, and medical devices under Make in India. Towards a 5 Trillion Dollar Economy

 “People‟s hearts filled with Aasha (Hope), Vishwas (Trust), Aakansha (Aspirations)”, says FM.

 Indian economy to become a 3 trillion dollar economy in the current year.  Government aspires to make India a 5 trillion dollar economy. Union Budget 2019-20 2

 “India Inc. are India‟s job-creators and nation‟s wealth-creators”, says FM.

 Need for investment in: o Infrastructure. o Digital economy. o Job creation in small and medium firms.

 Initiatives to be proposed for kick-starting the virtuous cycle of investments.

 Common man‟s life changed through MUDRA loans for ease of doing business.

 Measures related to MSMEs: o Pradhan Mantri Karam Yogi Maandhan Scheme

 Pension benefits to about three crore retail traders & small shopkeepers with annual turnover less than Rs. 1.5 crore.

 Enrolment to be kept simple, requiring only Aadhaar, bank account and a selfdeclaration. o Rs. 350 crore allocated for FY 2019-20 for 2% interest subvention (on fresh or incremental loans) to all GST-registered MSMEs, under the Interest Subvention Scheme for MSMEs. o Payment platform for MSMEs to be created to enable filing of bills and payment thereof, to eliminate delays in government payments.

 India‟s first indigenously developed payment ecosystem for transport, based on National Common Mobility Card (NCMC) standards, launched in March 2019.

 Inter-operable transport card runs on RuPay card and would allow the holders to pay for bus travel, toll taxes, parking charges, retail shopping.

 Massive push given to all forms of physical connectivity through: o Pradhan Mantri Gram Sadak Yojana. o Industrial Corridors, Dedicated Freight Corridors. o Bhartamala and Sagarmala projects, Jal Marg Vikas and UDAN Schemes.

 State road networks to be developed in second phase of Bharatmala project.

 Navigational capacity of Ganga to be enhanced via multi modal terminals at Sahibganj and Haldia and a navigational lock at Farakka by 2019-20, under Jal Marg Vikas Project. 3

 Four times increase in next four years estimated in the cargo volume on Ganga, leading to cheaper freight and passenger movement and reducing the import bill.

 Rs. 50 lakh crore investment needed in Railway Infrastructure during 2018-2030.  Public-Private-Partnership proposed for development and completion of tracks, rolling stock manufacturing and delivery of passenger freight services.  657 kilometers of Metro Rail network has become operational across the country.

 Policy interventions to be made for the development of Maintenance, Repair and Overhaul (MRO), to achieve self- reliance in aviation segment.

 Regulatory roadmap for making India a hub for aircraft financing and leasing activities from Indian shores, to be laid by the Government.

 Outlay of Rs. 10,000 crore for 3 years approved for Phase-II of FAME Scheme.

 Upfront incentive proposed on purchase and charging infrastructure, to encourage faster adoption of Electric Vehicles.

 Only advanced-battery-operated and registered e-vehicles to be incentivized under FAME Scheme.

 National Highway Programme to be restructured to ensure a National Highway Grid, using a financeable model.

 Power at affordable rates to states ensured under „One Nation, One Grid‟.  Blueprints to be made available for gas grids, water grids, i-ways, and regional airports.

 High Level Empowered Committee (HLEC) recommendations to be implemented: o Retirement of old & inefficient plants. o Addressing low utilization of gas plant capacity due to paucity of Natural Gas.

 Cross subsidy surcharges, undesirable duties on open access sales or captive generation for industrial and other bulk power consumers to be removed under Ujjwal DISCOM Assurance Yojana (UDAY).

 Package of power sector tariff and structural reforms to be announced soon.  Reform measures to be taken up to promote rental housing.  Model Tenancy Law to be finalized and circulated to the states.

 Joint development and concession mechanisms to be used for public infrastructure and affordable housing on land parcels held by the Central Government and CPSEs. 4

 Measures to enhance the sources of capital for infrastructure financing: o Credit Guarantee Enhancement Corporation to be set up in 2019-2020. o Action plan to be put in place to deepen the market for long term bonds with focus on infrastructure. o Proposed transfer/sale of investments by FIIs/FPIs (in debt securities issued by IDFNBFCs) to any domestic investor within the specified lock-in period.

 Measures to deepen bond markets: o Stock exchanges to be enabled to allow AA rated bonds as collaterals. o User-friendliness of trading platforms for corporate bonds to be reviewed.

 Social stock exchange: o Electronic fund raising platform under the regulatory ambit of SEBI. o Listing social enterprises and voluntary organizations. o To raise capital as equity, debt or as units like a mutual fund.

 SEBI to consider raising the threshold for minimum public shareholding in the listed companies from 25% to 35%.

 Know Your Customer (KYC) norms for Foreign Portfolio Investors to be made more investor friendly.

 Government to supplement efforts by RBI to get retail investors to invest in government treasury bills and securities, with further institutional development using stock exchanges.

 Measures to make India a more attractive FDI destination: o FDI in sectors like aviation, media (animation, AVGC) and insurance sectors can be opened further after multi-stakeholder examination. o Insurance Intermediaries to get 100% FDI. o Local sourcing norms to be eased for FDI in Single Brand Retail sector.

 Government to organize an annual Global Investors Meet in India, using National Infrastructure Investment Fund (NIIF) as an anchor to get all three sets of global players (pension, insurance and sovereign wealth funds).

 Statutory limit for FPI investment in a company is proposed to be increased from 24% to sectoral foreign investment limit. Option to be given to the concerned corporate to limit it to a lower threshold. 5

 FPIs to be permitted to subscribe to listed debt securities issued by ReITs and InvITs.  NRI-Portfolio Investment Scheme Route is proposed to be merged with the Foreign Portfolio Investment Route.

 Cumulative resources garnered through new financial instruments like Infrastructure Investment Trusts (InvITs), Real Estate Investment Trusts (REITs) as well as models like Toll-Operate-Transfer (ToT) exceed Rs. 24,000 crore.

 New Space India Limited (NSIL), a PSE, incorporated as a new commercial arm of Department of Space.

 To tap the benefits of the Research & Development carried out by ISRO like commercialization of products like launch vehicles, transfer to technologies and marketing of space products. Direct Taxes

 Tax rate reduced to 25% for companies with annual turnover up to Rs. 400 crore

 Surcharge increased on individuals having taxable income from Rs. 2 crore to Rs. 5 crore and Rs. 5 crore and above.

 India‟s Ease of Doing Business ranking under the category of „paying taxes‟ jumped from 172 in 2017 to 121 in the 2019.

 Direct tax revenue increased by over 78% in past 5 years to Rs. 11.37 lakh crore Tax Simplification and Ease of living – making compliance easier by leveraging technology:

 Interchangeability of PAN and Aadhaar o Those who don‟t have PAN can file tax returns using Aadhaar. o Aadhaar can be used wherever PAN is required.

 Pre-filling of Income-tax Returns for faster, more accurate tax returns o Pre-filled tax returns with details of several incomes and deductions to be made available. o Information to be collected from Banks, Stock exchanges, mutual funds etc.

 Faceless e-assessment 6 o Faceless e-assessment with no human interface to be launched. o To be carried out initially in cases requiring verification of certain specified transactions or discrepancies. Affordable housing

 Additional deduction up to Rs. 1.5 lakhs for interest paid on loans borrowed up to 31st March, 2020 for purchase of house valued up to Rs. 45 lakh. o Overall benefit of around Rs. 7 lakh over loan period of 15 years. Boost to Electric Vehicles

 Additional income tax deduction of Rs. 1.5 lakh on interest paid on electric vehicle loans.

 Customs duty exempted on certain parts of electric vehicles. Other Direct Tax measures

 Simplification of tax laws to reduce genuine hardships of taxpayers: o Higher tax threshold for launching prosecution for non-filing of returns o Appropriate class of persons exempted from the anti-abuse provisions of Section 50CA and Section 56 of the Income Tax Act. Relief for Start-ups

 Capital gains exemptions from sale of residential house for investment in start-ups extended till FY21.

 „Angel tax‟ issue resolved- start-ups and investors filing requisite declarations and providing information in their returns not to be subjected to any kind of scrutiny in respect of valuations of share premiums.

 Funds raised by start-ups to not require scrutiny from Income Tax Department o E-verification mechanism for establishing identity of the investor and source of funds.

 Special administrative arrangements for pending assessments and grievance redressal o No inquiry in such cases by the Assessing Officer without obtaining approval of the supervisory officer.

 No scrutiny of valuation of shares issued to Category-II Alternative Investment Funds.

 Relaxation of conditions for carry forward and set off of losses. 7 NBFCs

 Interest on certain bad or doubtful debts by deposit taking as well as systemically important non-deposit taking NBFCs to be taxed in the year in which interest is actually received. International Financial Services Centre (IFSC)

 Direct tax incentives proposed for an IFSC: o 100 % profit-linked deduction in any ten-year block within a fifteen-year period. o Exemption from dividend distribution tax from current and accumulated income to companies and mutual funds. o Exemptions on capital gain to Category-III Alternative Investment Funds (AIFs). o Exemption to interest payment on loan taken from non-residents. Securities Transaction Tax (STT)

 STT restricted only to the difference between settlement and strike price in case of exercise of options. Indirect Taxes Make In India

 Basic Customs Duty increased on cashew kernels, PVC, tiles, auto parts, marble slabs, optical fibre cable, CCTV camera etc.

 Exemptions from Custom Duty on certain electronic items now manufactured in India withdrawn.

 End use based exemptions on palm stearin, fatty oils withdrawn.  Exemptions to various kinds of papers withdrawn.  5% Basic Custom Duty imposed on imported books.

 Customs duty reduced on certain raw materials such as: o Inputs for artificial kidney and disposable sterilised dialyser and fuels for nuclear power plants etc. o Capital goods required for manufacture of specified electronic goods. 8 Defence

 Defence equipment not manufactured in India exempted from basic customs duty Other Indirect Tax provisions

 Export duty rationalised on raw and semi-finished leather

 Increase in Special Additional Excise Duty and Road and Infrastructure Cess each by Rs. 1 per litre on petrol and diesel

 Custom duty on gold and other precious metals increased

 Legacy Dispute Resolution Scheme for quick closure of pending litigations in Central Excise and Service tax from pre-GST regime Grameen Bharat / Rural India

 Ujjwala Yojana and Saubhagya Yojana have transformed the lives of every rural family, dramatically improving ease of their living.

 Electricity and clean cooking facility to all willing rural families by 2022.  Pradhan Mantri Awas Yojana – Gramin (PMAY-G) aims to achieve “Housing for All” by 2022: o Eligible beneficiaries to be provided 1.95 crore houses with amenities like toilets, electricity and LPG connections during its second phase (2019-20 to 2021-22).

 Pradhan Mantri Matsya Sampada Yojana (PMMSY) o A robust fisheries management framework through PMMSY to be established by the Department of Fisheries. o To address critical gaps in the value chain including infrastructure, modernization, traceability, production, productivity, post-harvest management, and quality control.

 Pradhan Mantri Gram Sadak Yojana (PMGSY) o Target of connecting the eligible and feasible habitations advanced from 2022 to 2019 with 97% of such habitations already being provided with all weather connectivity. o 30,000 kilometers of PMGSY roads have been built using Green Technology, Waste Plastic and Cold Mix Technology, thereby reducing carbon footprint. o 1,25,000 kilometers of road length to be upgraded over the next five years under PMGSY III with an estimated cost of Rs. 80,250 crore. 9

 Scheme of Fund for Upgradation and Regeneration of Traditional Industries‟ (SFURTI) o Common Facility Centres (CFCs) to be setup to facilitate cluster based development for making traditional industries more productive, profitable and capable for generating sustained employment opportunities. o 100 new clusters to be setup during 2019-20 with special focus on Bamboo, Honey and Khadi, enabling 50,000 artisans to join the economic value chain.

 Scheme for Promotion of Innovation, Rural Industry and Entrepreneurship‟ (ASPIRE) consolidated. o 80 Livelihood Business Incubators (LBIs) and 20 Technology Business Incubators (TBIs) to be setup in 2019-20. o 75,000 entrepreneurs to be skilled in agro-rural industry sectors.

 Private entrepreneurships to be supported in driving value-addition to farmers‟ produce from the field and for those from allied activities.

 Dairying through cooperatives to be encouraged by creating infrastructure for cattle feed manufacturing, milk procurement, processing & marketing.  10,000 new Farmer Producer Organizations to be formed, to ensure economies of scale for farmers.

 Government to work with State Governments to allow farmers to benefit from e-NAM.

 Zero Budget Farming in which few states‟ farmers are already being trained to be replicated in other states.

 India‟s water security o New Jal Shakti Mantralaya to look at the management of our water resources and water supply in an integrated and holistic manner o Jal Jeevan Mission to achieve Har Ghar Jal (piped water supply) to all rural households by 2024 o To focus on integrated demand and supply side management of water at the local level. o Convergence with other Central and State Government Schemes to achieve its objectives. 10 o 1592 critical and over exploited Blocks spread across 256 District being identified for the Jal Shakti Abhiyan. o Compensatory Afforestation Fund Management and Planning Authority (CAMPA) fund can be used for this purpose.

 Swachh Bharat Abhiyan o 9.6 crore toilets constructed since Oct 2, 2014. o More than 5.6 lakh villages have become Open Defecation Free (ODF). o Swachh Bharat Mission to be expanded to undertake sustainable solid waste management in every village.

 Pradhan Mantri Gramin Digital Saksharta Abhiyan, o Over two crore rural Indians made digitally literate. o Internet connectivity in local bodies in every Panchayat under Bharat-Net to bridge rural-urban divide. o Universal Obligation Fund under a PPP arrangement to be utilized for speeding up Bharat-Net. Shahree Bharat/Urban India

 Pradhan Mantri Awas Yojana – Urban (PMAY-Urban)- o Over 81 lakh houses with an investment of about Rs. 4.83 lakh crore sanctioned of which construction started in about 47 lakh houses. o Over 26 lakh houses completed of which nearly 24 lakh houses delivered to the beneficiaries. o Over 13 lakh houses so far constructed using new technologies.  More than 95% of cities also declared Open Defecation Free (ODF).

 Almost 1 crore citizens have downloaded Swachhata App.

 Target of achieving Gandhiji‟s resolve of Swachh Bharat to make India ODF by 2nd October 2019. o To mark this occasion, the Rashtriya Swachhta Kendra to be inaugurated at Gandhi Darshan, Rajghat on 2nd October, 2019. 11 o Gandhipedia being developed by National Council for Science Museums to sensitize youth and society about positive Gandhian values.

 Railways to be encouraged to invest more in suburban railways through SPV structures like Rapid Regional Transport System (RRTS) proposed on the Delhi-Meerut route.

 Proposal to enhance the metro-railway initiatives by: o Encouraging more PPP initiatives. o Ensuring completion of sanctioned works. o Supporting transit oriented development (TOD) to ensure commercial activity around transit hubs. Youth

 New National Education Policy to be brought which proposes o Major changes in both school and higher education o Better Governance systems o Greater focus on research and innovation.

 National Research Foundation (NRF) proposed o To fund, coordinate and promote research in the country. o To assimilate independent research grants given by various Ministries. o To strengthen overall research eco-system in the country o This would be adequately supplemented with additional funds.

 Rs. 400 crore provided for “World Class Institutions”, for FY 2019-20, more than three times the revised estimates for the previous year.  „Study in India‟ proposed to bring foreign students to study in Indian higher educational institutions.

 Regulatory systems of higher education to be reformed comprehensively: o To promote greater autonomy. o To focus on better academic outcomes.

 Draft legislation to set up Higher Education Commission of India (HECI), to be presented.

 Khelo India Scheme to be expanded with all necessary financial support. 12

 National Sports Education Board for development of sportspersons to be set up under Khelo India, to popularize sports at all levels

 To prepare youth for overseas jobs, focus to be increased on globally valued skill-sets including language training, AI, IoT, Big Data, 3D Printing, Virtual Reality and Robotics.

 Set of four labour codes proposed, to streamline multiple labour laws to standardize and streamline registration and filing of returns.

 A television program proposed exclusively for and by start-ups, within the DD bouquet of channels.

 Stand-Up India Scheme to be continued for the period of 2020-25. The Banks to provide financial assistance for demand based businesses. Ease of Living

 About 30 lakh workers joined the Pradhan Mantri Shram Yogi Maandhan Scheme that provides Rs. 3,000 per month as pension on attaining the age of 60 to workers in unorganized and informal sectors.  Approximately 35 crore LED bulbs distributed under UJALA Yojana leading to cost saving of Rs. 18,341 crore annually.

 Solar stoves and battery chargers to be promoted using the approach of LED bulbs mission.

 A massive program of railway station modernization to be launched. Naari Tu Narayani/Women

 Approach shift from women-centric-policy making to women-led initiatives and movements.

 A Committee proposed with Government and private stakeholders for moving forward on Gender budgeting.

 SHG: o Women SHG interest subvention program proposed to be expanded to all districts. o Overdraft of Rs. 5,000 to be allowed for every verified women SHG member having a Jan Dhan Bank Account. 13 o One woman per SHG to be eligible for a loan up to Rs. 1 lakh under MUDRA Scheme. India‟s Soft Power

 Proposal to consider issuing Aadhaar Card for NRIs with Indian Passports on their arrival without waiting for 180 days.

 Mission to integrate traditional artisans with global markets proposed, with necessary patents and geographical indicators.

 18 new Indian diplomatic Missions in Africa approved in March, 2018, out of which 5 already opened. Another 4 new Embassies intended in 2019-20.

 Revamp of Indian Development Assistance Scheme (IDEAS) proposed.

 17 iconic Tourism Sites being developed into model world class tourist destinations.

 Present digital repository aimed at preserving rich tribal cultural heritage, to be strengthened. Banking and Financial Sector

 NPAs of commercial banks reduced by over Rs. 1 lakh crore over the last year.

 Record recovery of over Rs. 4 lakh crore effected over the last four years.  Provision coverage ratio at its highest in seven years.

 Domestic credit growth increased to 13.8%.

 Measures related to PSBs: o Rs. 70,000 crore proposed to be provided to PSBs to boost credit. o PSBs to leverage technology, offering online personal loans and doorstep banking, and enabling customers of one PSBs to access services across all PSBs. o Steps to be initiated to empower accountholders to have control over deposit of cash by others in their accounts. o Reforms to be undertaken to strengthen governance in PSBs.

 Measures related to NBFCs: o Proposals for strengthening the regulatory authority of RBI over NBFCs to be placed in the Finance Bill. 14 o Requirement of creating a Debenture Redemption Reserve will be done away with to allow NBFCs to raise funds in public issues. o Steps to allow all NBFCs to directly participate on the TReDS platform.

 Return of regulatory authority from NHB to RBI proposed, over the housing finance sector.

 Rs. 100 lakh crore investment in infrastructure intended over the next five years. Committee proposed to recommend the structure and required flow of funds through development finance institutions.

 Steps to be taken to separate the NPS Trust from PFRDA.  Reduction in Net Owned Fund requirement from Rs. 5,000 crore to Rs. 1,000 crore proposed: o To facilitate on-shoring of international insurance transactions. o To enable opening of branches by foreign reinsurers in the International Financial Services Centre.

 Measures related to CPSEs: o Target of Rs. 1, 05,000 crore of disinvestment receipts set for the FY 2019-20. o Government to reinitiate the process of strategic disinvestment of Air India, and to offer more CPSEs for strategic participation by the private sector. o Government to undertake strategic sale of PSUs and continue to consolidate PSUs in the non-financial space. o Government to consider going to an appropriate level below 51% in PSUs where the government control is still to be retained, on case to case basis. o Present policy of retaining 51% Government stake to be modified to retaining 51% stake inclusive of the stake of Government controlled institutions. o Retail participation in CPSEs to be encouraged. o To provide additional investment space:

 Government to realign its holding in CPSEs

 Banks to permit greater availability of its shares and to improve depth of its market. o Government to offer an investment option in ETFs on the lines of Equity Linked Savings Scheme (ELSS). 15 o Government to meet public shareholding norms of 25% for all listed PSUs and raise the foreign shareholding limits to maximum permissible sector limits for all PSU companies which are part of Emerging Market Index.

 Government to raise a part of its gross borrowing program in external markets in external currencies. This will also have beneficial impact on demand situation for the government securities in domestic market.  New series of coins of One Rupee, Two Rupees, Five Rupees, Ten Rupees and Twenty Rupees, easily identifiable to the visually impaired to be made available for public use shortly. Digital Payments

 TDS of 2% on cash withdrawal exceeding Rs. 1 crore in a year from a bank account  Business establishments with annual turnover more than Rs. 50 crore shall offer low cost digital modes of payment to their customers and no charges or Merchant Discount Rate shall be imposed on customers as well as merchants. Mega Investment in Sunrise and Advanced Technology Areas

 Scheme to invite global companies to set up mega-manufacturing plants in areas such as Semi-conductor Fabrication (FAB), Solar Photo Voltaic cells, Lithium storage batteries, Computer Servers, Laptops, etc o Investment linked income tax exemptions to be provided along with indirect tax benefits. Achievements during 2014-19

 1 trillion dollar added to Indian economy over last 5 years (compared to over 55 years taken to reach the first trillion dollar).  India is now the 6th largest economy in the world, compared to 11th largest five years ago.  Indian economy is globally the 3rd largest in Purchasing Power Parity (PPP) terms.

 Strident commitment to fiscal discipline and a rejuvenated Centre-State dynamic provided during 2014-19. 16

 Structural reforms in indirect taxation, bankruptcy and real estate carried out.  Average amount spent on food security per year almost doubled during 2014-19 compared to 2009-14.

 Patents issued more than trebled in 2017-18 as against the number in 2014.

 Ball set rolling for a New India, planned and assisted by the NITI Aayog. Roadmap for future

 Simplification of procedures.

 Incentivizing performance.

 Red-tape reduction.

 Making the best use of technology.

 Accelerating mega programmes and services initiated and delivered so far.








The property remains undivided from that time, till date is treated And termed as ANCESTRAL PROPERTY

PROPERTY INHERITED UPTO FOUR GENERATIONS OF LINEAGE, EHICH MEANS FATHER, GRAND FATHER, GREAT GRAND FATHER AND GREAT-GREAT-GRAND FATHER is called ancestral property.  It should have remained undivided till the fourth generation upwards.


Property inherited from mother, grandmother, uncle and even brother is not ancestral property.

Property inherited through WILL or GIFT are not ancestral properties.

Self-acquired property becomes, ancestral property, if it is thrown in the common pool of the ancestral properties and enjoyed in common.

A Proposal to Ban the construction of Apartments in Bangalore for 5 years

The Deputy Chief Minister, during an interview expressed a view that there is a proposal to STOP the construction of Apartments for 5 years, it is applicable for the legitimate builders, who are coming up or building apartment complex by complying all the rules and regulations, but for majority of scrupulous and fraud builders, who construct apartments in 30 feet X 40 feet, 40 feet x 60 feet and 50 feet x 80 feet sites in revenue areas, converted lands and everywhere, do not require any sanctions or plans.

At the same time, there are financial institutions, funding such illegal activities, the scrupulous builders thrive with the assistance and help of these financial institutions and sell the illegal flats to the buyers. Majority of the buyers are very well aware of what they are buying. They are not ignorant. They need some space to live in and are not bothered about the sanctions, laws, plans and compliance.

All these illegal activities are very well supported by local goons and politicians and sometimes, financed by the mafia cartel.

In such a scenario, stopping or banning the legitimate constructions does not make any sense.

If the Government is serious, it must BAN OR STOP the illegal constructions.

1). The Town Planning Department, Engineering Department and Revenue Departments must take severe penal action of illegal constructions.

2). Block the funds flow or finance from these financial institutions, automatically, the illegal constructions will come down.

3). Stop the power, water supply and do not allow for the septic tanks to be built or provide sanitary connections to illegal building.

4). Do not issue B Form for these illegal buildings.

5). Cancel the B forms issued to all buildings which have violated sanctioned building plans.

6). Permit only one vehicle per family, who have the financial capability and financial credit worthy to own a vehicle and permits must be given only for those, who have parking slots or parking area.

7). Penalise footpath parking.



a. Only genuine cases must be issued permits to buy the vehicles.

b. Only genuine and capable individuals must be provided with bank loans to buy vehicles.

Automatically, illegal constructions will come down, Genuine activity will begin. Traffic management will be easy.




Approximately 8,000 Sft of residentially converted, STRRPA Approved, with Genuine E-Katha, Up-to Date tax paid, clear titled, vacant, single owner, self acquired property and located on Sarjapur Road, near sports city is FOR SALE.

Suitable for apartments or Row housing.

Close to proposed STRRPA Ring Road.

Genuine buyers may contact:



The BBMP has sent a proposal to the State Government of Karnataka to regularise (convert) B katha properties (vacant properties-without any construction) to A katha and the matter is still pending before the Government. As this subject is under judicial scrutiny before the Apex Court, the matter may be brought before the court for its consideration or observation. This proposal might be subject to Apex Court`s intervention.


Too many mails, SMS and Spam & Fraud telecallers inviting you for the purchase of PLANTATION LANDS in Bangalore Urban, Rural, Ramangara, Tumakuru and Chikkaballapura Districts, tempting the buyers with juicy deals.

UNDERSTAND: What are plantation Crops? Where does these crops grow?

What are the requirements of a plantation land?


There is another catch from friends and relatives. They are offered high commissions on the sale of this type of land, so they tempt stating that they have bought XXXXXX many feet or guntas and drown you in lifelong misery.

There was teak plantation scam earlier and many drowned in it and now, coffeee, tea and rubber, papya plantation scheme in BANGALORE.

The price of an acre of coffee estate in Coorg, Chickmagalore and Hassan vary anywhere in the range of Rs.10 lakhs to Rs.20 lakhs, but these sellers/marketing agents are offering 0-10 guntas at Rs.10 to Rs.20 lakhs. The returns will be anywhere 1% to -5% and reselling is very difficult.



It is said that a leading builder, in an upcoming apartment complex on sarjapur road obtained the sanction for a building plan from BBMP and got the RERA Approval, for the schedule property which had a litigation or title suit or cases as long as 19 to 20 years and still running and will run for some more time.

It is surprising that the buyers never checked or examined or scrutinised the titles before entering into sale agreement and the title and other documents were submitted at the time of the second advance or installment upon the demand by the buyers.

It is found that the same builder hiding/not disclosing the facts/concealing the facts from the buyers, tricked or convinced the buyers to pay advance money towards the apartments and it is heard that they were unwillingly compelled to pay the second payment, even though, the clients cited the litigation or pending suit, stating that , if the second advance or payment is not made, the registered sale agreement might be cancelled and 10% or 20% of the sale value of the apartment will be deducted as per the agreement. Forced or compelled by such threats or scare, the buyers paid the second installment.

The landlords submitted a petition or application or request to the BBMP not to proceed by clearly stating the pending litigation, but the BBMP sanctioned the building plan.

It is reliably learnt that the original landlords are planning to initiate another proceedings in the court of law very soon.


Aged parents or senior citizens or widowed mother/father and aged sisters and brothers, who had properties or owned properties, which had been gifted to the children or sisters or brothers and are not being taken good care by the children/sisters or brothers may approach the court to get their grievance redressed, if the same gifted property is not sold by the beneficiary or the relative. Contact your advocate for legal solution.


There is news of allegations of discrepancy/violation of law regarding the TDR issued by the BBMP, utilising it, a leading builder having built apartments at Bannergatta road and another builder having built few residential complexes across Bangalore may be under scrutiny by the investigating agencies. It is learnt from reliable sources that there are few more builders might have been involved.

Please check the DP/Sanctioned Building plan and the documents submitted to get the approvals and sanctions.

TDR Scam in BBMP- Some builders may or might or really in trouble!!!!

The recent Transferable Development Right SCAM in BBMP will ultimately affect the innocent property buyers, in fact, majority are APARTMENT BUYERS.

The fact is that these BUILDERS have bought the TDR and made good use of it and are constructing or constructed the complexes, may be illegal. It is a long legal battle.

The advance booking apartment GUYS and the buyers are in SERIOUS LEGAL TANGLE for quite some years. The legal opinion may not be complete or may be insufficient to look into these issues. These builders refuse/decline/reject to give proper details and clarification or documents related to the TDR.

A famous CREDAI member name is widely known for the purchase of TDR.

What is TDR.

The Government Body like BBMP acquires private property for public purpose for road widening and as usual cannot pay the property value or consideration or compensation, hence, if the land acquired is 1 feet, TDR is issued for 1 1/2 feet or 2 feet for the additional or extra construction over and above the FAR or FSI. The result is that the buyer gets LESS UNDIVIDED SHARE IN THE LAND.

This is free BALAJI DARSHAN offered by this type of Apartment complexes by the developer, the buyer need not go to the Tirupati for BALAJI DARSHAN, the builder, puts the NAMA (lll) right in their air conditioned office and the buyers are thrilled. The NAMA is invincible and these buyers pay for their penalty even without knowing, for another 5 to 20 years.


We provide end-end liaison services in Karnataka. We assist in the purchase of properties/lands for residential/industrial and commercial purposes, change the nature of use from the appropriate Government authority, develop it as per the prevailing laws, obtain the approvals, clearances and ready to build status.

We handle property/recovery & all type of civil litigations from our legal team of experts and panel.

Liaison with all central and state government for residential/industrial and commercial purposes.

BDA, Anekal Planning Authority & BIAAPA Approved & Released Sites with E-Katha is available for sale

1). 2 BHK Apartment at Hiranandani, Devanahalli, freehold, ready to occupy is for sale. Price.92,00,000/-, with E-Katha.

2). BIAAPA approved and released site near Brigade Orchards, Devanahally, close to the 60 feet road and cargo road is for sale. 1,350 sft. Price. 3,000/-

3). North Facing, BDA site in Jayanagar 2nd Block, 80 feet road, 60 Feet X 90 Feet – 5400 sft approximately is for sale.

4). 3 sites of various dimension approved by BDA now within BBMP jurisdiction attached to Banashankari 5th Stage Layout Close to Mysore Road, Bangalore is for sale. Rs.4,500/- approximately.

5). Site at BDA approved and released site with E-Katha on Sarjapur Road, Well developed layout, surrounded by villas,measuring 30 feet X 50 feet -1,500 sft and the price is Rs.4,500/- approximately.

All the properties are BDA/BIAAPA approved, released, well developed, free hold, clear titled properties for sale.


Site visit and inspection will be arranged.

Service Charges applicable.

Casual and General price enquiry clients NEED NOT CALL AND DISTURB.

Sale Agreements which are one sided and unfair cannot stand the test of law and will be struck down. Many builder`s sale agreements in bengaluru is of similar kind. Supreme Court case citation dated 02-04-2019




CIVIL APPEAL NO. 12238 OF 2018

Pioneer Urban Land & Infrastructure Ltd.                                     …Appellant


Govindan Raghavan                                                                                               …Respondent



Pioneer Urban Land & Infrastructure Ltd.                                     …Appellant


Geetu Gidwani Verma & Anr.                                                                    …Respondent



  1. The present statutory Appeals have been filed under Section 23 of the Consumer Protection Act, 1986 to challenge the Final Judgment and Order dated 23.10.2018 passed in Consumer

Case No. 238 of 2017 and Consumer Case No. 239 of 2017 by the National Consumer Disputes Redressal Commission (hereinafter referred to as “the National Commission”).

  • Since a common issue arises in both the Civil Appeals, they are being disposed of by the present common Judgment and Order.
  • For the sake of brevity, the facts in C.A. No. 12238 of 2018 are being referred to, being the lead matter.

The factual matrix of the said Civil Appeal is as under :

3.1.  The Appellant – Builder launched a residential project by the name “Araya Complex” in Sector 62, Golf Course

Extension Road, Gurugram.

The  Respondent  –  Flat  Purchaser  entered  into  an

Apartment Buyer’s Agreement dated 08.05.2012 with the Appellant – Builder to purchase an apartment in the said project for a total sale consideration of Rs. 4,83,25,280/-.

As per Clause 11.2 of the Agreement, the Appellant –

Builder was to make all efforts to apply for the Occupancy Certificate within 39 months from the date of excavation, with a grace period of 180 days.

3.2. The excavation of the project commenced on 04.06.2012. As per Clause 11.2 of the Agreement, the Builder was required to apply for the Occupancy Certificate by 04.09.2015, or within a further grace period of 6 months i.e. by 04.03.2016, and offer possession of the flat to the Respondent – Flat Purchaser.

The Appellant – Builder however failed to apply for the Occupancy Certificate as per the stipulations in the Agreement.

3.3. The Respondent – Flat Purchaser filed a Consumer Complaint before the National Commission on 27.01.2017 alleging deficiency of service on the part of the Appellant – Builder for failure to obtain the Occupancy Certificate, and hand over possession of the flat.

The Respondent prayed inter-alia for :-

•     Refund   of   the   entire   amount   deposited   being Rs. 4,48,43,026/-, along with Interest @18% p.a.; and

  • Compensation of Rs. 10,00,000/- for mental agony, harassment, discomfort and undue hardship; and
  • Refund of the wrongfully charged taxes including Service Tax, and other charges along with Interest @18% p.a.; and
  • Litigation Costs of Rs. 1,00,000/-.

3.4. On 06.02.2017, the National Commission passed an ex-parte Interim Order restraining the Appellant–Builderfrom cancelling the allotment made in favour of the Respondent – Flat Purchaser during the pendency of the Consumer Case.

3.5. During the pendency of the proceedings before the National Commission, the Appellant – Builder obtained the Occupancy Certificate on 23.07.2018, and issued a Possession Letter to the Respondent – Flat Purchaser on 28.08.2018.

3.6. The Appellant – Builder submitted before the National Commission that since the construction of the apartment was complete, and the Occupancy Certificate had since been obtained, the Respondent – Flat Purchaser must be directed to take possession of the apartment, instead of directing refund of the amount deposited.

3.7. The Respondent – Flat Purchaser however submitted that he was not interested in taking possession of the apartment on account of the inordinate delay of almost 3 years. The Respondent – Flat Purchaser stated that he had, in the meanwhile, taken an alternate property in Gurugram, and sought refund of the entire amount of Rs. 4,48,43,026/- deposited by him along with Interest @18% p.a.

3.8. The National Commission vide Final Judgment and Order dated 23.10.2018 allowed the Consumer Complaint filed by the Respondent – Flat Purchaser, and held that since the last date stipulated for construction had expired about 3 years before the Occupancy Certificate was obtained, the Respondent – Flat Purchaser could not be compelled to take possession at such a belated stage.

The grounds urged by the Appellant – Builder for delay in handing over possession were not justified, so as to deny awarding compensation to the Respondent – Flat Purchaser. The clauses in the Agreement were held to be wholly one – sided, unfair, and not binding on the Respondent – Flat Purchaser.

The Appellant – Builder was directed to refund Rs. 4,48,43,026/- i.e. the amount deposited by the Respondent – Flat Purchaser, along with Interest @10.7% S.I. p.a. towards compensation. The rate of Interest @10.7% S.I. p.a. was fixed in accordance with Rule 15 of the Haryana Real Estate (Regulation and Development) Rules, 2017 which reads as follows :

“15. An allottee shall be compensated by the promoter for loss or damage sustained due to incorrect or false statement in the notice, advertisement, prospectus or brochure in the terms of Section 12. In case, allottee wishes to withdraw from the project due to discontinuance of promoter’s business as developers on account of suspension or revocation of the registration or any other reason(s) in terms of clause (b) sub-section (I) of Section 18 or the promoter fails to give possession of the apartment/ plot in accordance with terms and conditions of agreement for sale in terms of sub-section (4) of section 19. The promoter shall return the entire amount with interest as well as the compensation payable. The rate of interest payable by the promoter to the allottee or by the allottee to the promoter, as the case may be, shall be the State Bank of India highest marginal cost of lending rate plus two percent. …”

(emphasis supplied)

However, for the period when the Interim Order dated 06.02.2017 was in operation, which restrained the Appellant – Builder from cancelling the Respondent’s allotment, no Interest was awarded. The National Commission ordered payment of Interest from the date of

each installment till 05.02.2017; and from the date of the Order passed by the Commission till the date on which the amount would be refunded.

3.9. Aggrieved by the Order dated 23.10.2018 passed by the National Commission, the Appellant – Builder preferred the present statutory Appeal under Section 23 of the Consumer Protection Act, 1986.

  • Mr. C.A. Sundaram, Senior Counsel appeared for the Appellant – Builder, and drew our attention to the following Clauses in the Apartment Buyer’s Agreement dated 08.05.2012 viz. Clause 11.5 (ii), (iv) and (v) along with Clause

20 which read as under :

“11.5. (ii) In the event of further delay by the Developer in handing over of the possession of the Unit even after 12 months from the end of grace period, then in such case, the intending Allottee shall have an additional option to terminate this Agreement by giving termination notice of 90 days to the Developer and refund of the actual installment paid by him against the Unit after adjusting the taxes paid / interest / penalty on delayed payments.

  • Developer shall, within ninety (90) days from the date of receipt of termination notice of said Unit, refund to the intending Allottee, all the monies received excluding the service tax collected on various remittances, till the date of the refund, from the Intending Allottee under this Agreement. In case the Developer fails to refund

the Sale Price, the Developer shall pay interest to the Intending Allottee @ 9% per annum for any period beyond the said period of ninety (90) days. The Intending Allottee shall have no other claim against the Developer in respect of the said Unit along with the parking space. The Intending Allottee in this event shall have no right to seek any compensation apart from the interest as stipulated herein.

  • If the Intending Allottee fails to exercise his right of termination within the time limit as aforesaid, by delivery to the Developer of a written notice acknowledged by the Developer in this regard, then he shall not be entitled to terminate this Agreement thereafter and he shall continue to be bound by the provisions of this Agreement, provided that in such case, the Developer shall continue to pay the compensation provided herein.

Except to the extent specifically and expressly stated elsewhere in this Agreement, the Intending Allottee shall have the right to cancel this Agreement solely in the event of the clear and unambiguous failure of the warranties of the Developer that leads to frustration of the contract on that account. In such case, the Allottee shall be entitled to a refund of the installments actually paid by it along with interest thereon @ 6% per annum, within a period of 90 days from the date of communication to the Developer in this regard less any payments made towards taxes paid by the Developer or interest paid due or payable, any other amount of a non-refundable nature. No other claim, whatsoever, monetary or otherwise shall lie against the Developer nor shall be raised otherwise or in any manner whatsoever by the Allottee. Save and except to this limited extent, the Allottee shall not have any right to cancel this

Agreement on any ground whatsoever.”

(emphasis supplied)

4.1.   It was submitted that the Respondent – Flat Purchaser

was not entitled to refund of the amount deposited, since

the Apartment Buyer’s Agreement was not terminated by the Respondent – Flat Purchaser in accordance with Clause 11.5 (ii) of the Agreement, which stipulates that the allottee has to terminate the Agreement by giving a Termination Notice of 90 days to the Developer.

Since the Respondent – Flat Purchaser had not terminated the Agreement by a written notice as per Clause 11.5, the Builder could not sell the apartment, and refund the money to the Respondent – Flat Purchaser. On the contrary, the Respondent filed a Consumer Complaint and obtained an ex-parte Interim Order dated 06.02.2017 restraining the Builder from cancelling the allotment made in favour of the Respondent.

4.2. It was further submitted that if the filing of the Consumer Complaint is considered as an act of termination of the Agreement, then the same was pre-mature. As per Clause 11.5 (ii), the Respondent – Flat Purchaser could have claimed refund only after the expiry of 12 months after the grace period came to an end i.e. after 04.03.2017. However, the Consumer Complaint was filed on 27.01.2017. In these circumstances, even if it is

found that the Appellant – Builder is liable to refund the amount deposited with Interest, then the date of the Impugned Order i.e. 23.10.2018, must be treated as the date of serving the Termination Notice as per Clause 11.5

  • of the Agreement, and the Appellant – Builder should be held liable to pay Interest only after 90 days from the date of termination i.e. from 23.01.2019.

4.3. With respect to rate of Interest awarded by the National Commission, it was submitted that the Commission erred in granting Interest @10.7% S.I. p.a. even though Clause 20 of the Agreement provided Interest @6% p.a. in case of delay in handing over possession. Even under Clause 11.5 of the Agreement, the Builder was liable to pay Interest @9% p.a., but not @10.7% S.I. p.a. The learned Senior Counsel relied upon this Court’s Judgment in Bharathi

Knitting Company v. DHL Worldwide Express Courier Division of Airfreight Ltd.,1 and submitted that the NationalCommission could not have granted compensation in excess of the rate prescribed by the Agreement.

  1. (1996) 4 SCC 704.

  • Mr. Sushil Kaushik, learned Counsel represented the Respondent – Flat Purchaser.

5.1. It was submitted that the filing of the Consumer Complaint may be treated as his Termination Notice under Clause 11.5 (ii) of the Agreement. Under the Agreement, the Builder was obligated to apply for the Occupancy Certificate within 39 months from the date of excavation, with a grace period of further 6 months. The period got over by 04.03.3016 after taking into account the grace period.

Admittedly, the Appellant – Builder offered possession after an inordinate delay of almost 3 years on 28.08.2018. On account of the inordinate delay, the Respondent – Flat Purchaser had no option but to arrange for alternate accommodation in Gurugram. Hence, he could not be compelled to take possession of the apartment after such a long delay.

It was in these circumstances that the Respondent – Flat Purchaser sought stay of the cancellation of the allotment as a collateral, till his claim for refund was adjudicated by the National Commission.

5.2. It was further submitted that the Clauses of the Agreement were one-sided. As per Clause 6.4 (ii) of the Apartment Buyer’s Agreement, the Appellant Builder could charge Interest @18% p.a. for delayed payments.

However, the Appellant – Builder was not required to pay equivalent Interest to the Respondent – Flat Purchaser for delay in handing over possession of the flat.

On the contrary, as per Clause 11.5 (iv) of the Agreement, in case of delay on the part of the Appellant – Builder in handing over possession of the flat, the Respondent – Flat Purchaser was entitled to Interest @9% p.a. only.

5.3. The Respondent further submitted that the National Commission had ordered payment of Interest as per the statutory Rules i.e. Rule 15 of the Haryana Real Estate (Regulation and Development) Rules, 2017 @10.7% S.I. p.a.

The Respondent – Flat Purchaser submitted that he had obtained a loan for Rs. 3,30,00,000/- from Standard Chartered Bank to purchase the flat in question, and had entered into a Tripartite Loan Agreement with the Bank

and the Builder. The Respondent – Flat Purchaser had to pay Interest @10% p.a. for servicing the loan for the entire period. Hence, Interest @10.7% S.I. p.a. awarded by the National Commission was just and fair.

It was pointed out that even though the National Commission had not granted Interest for the period during which the Order of stay of cancellation of the allotment was in operation, the Respondent – Flat Purchaser had to pay Interest to the Bank even for this period.

5.4. The Respondent – Flat Purchaser submitted that the present Appeal be dismissed, and the Builder be directed to pay the amount awarded by the National Commission with Interest, within 1 week, so that the Respondent can discharge his loan liability.

  • We have heard the learned Counsel for both the parties, and perused the pleadings, and written submissions filed.

6.1.  In the present case, admittedly the Appellant – Builder obtained the Occupancy Certificate almost 2 years after the date stipulated in the Apartment Buyer’s Agreement. As  a  consequence,  there  was  a  failure  to  hand 

possession of the flat to the Respondent – Flat Purchaser within a reasonable period. The Occupancy Certificate was obtained after a delay of more than 2 years on 28.08.2018 during the pendency of the proceedings before the National Commission.

In Lucknow Development Authority v. M.K. Gupta,2 this Court held that when a person hires the services of a builder, or a contractor, for the construction of a house or a flat, and the same is for a consideration, it is a “service” as defined by Section 2 (o) of the Consumer Protection Act, 1986. The inordinate delay in handing over possession of the flat clearly amounts to deficiency of service.

In Fortune Infrastructure & Anr. v. Trevor D’Lima & Ors.,3 this Court held that a person cannot be made to wait indefinitely for possession of the flat allotted to him, and is entitled to seek refund of the amount paid by him, along with compensation.

6.2. The Respondent – Flat Purchaser has made out a clear case of deficiency of service on the part of the Appellant – Builder. The Respondent – Flat Purchaser was justified in

  • (1994) 1 SCC 243.
  • (2018) 5 SCC 442.

terminating the Apartment Buyer’s Agreement by filing the Consumer Complaint, and cannot be compelled to accept the possession whenever it is offered by the Builder. The Respondent – Purchaser was legally entitled to seek refund of the money deposited by him along with appropriate compensation.

6.3. The National Commission in the Impugned Order dated 23.10.2018 held that the Clauses relied upon by the Builder were wholly one-sided, unfair and unreasonable, and could not be relied upon.

The Law Commission of India in its 199th Report, addressed the issue of ‘Unfair (Procedural & Substantive) Terms in Contract’. The Law Commission inter-alia recommended that a legislation be enacted to counter such unfair terms in contracts. In the draft legislation provided in the Report, it was stated that :

“A contract or a term thereof is substantively unfair if such contract or the term thereof is in itself harsh, oppressive or unconscionable to one of the parties.”

6.4. A perusal of the Apartment Buyer’s Agreement dated 08.05.2012 reveals stark incongruities between the remedies available to both the parties.

For instance, Clause 6.4 (ii) of the Agreement entitles the Appellant – Builder to charge Interest @18% p.a. on account of any delay in payment of installments from the Respondent – Flat Purchaser.

Clause 6.4 (iii) of the Agreement entitles the Appellant – Builder to cancel the allotment and terminate the Agreement, if any installment remains in arrears for more than 30 days.

On the other hand, as per Clause 11.5 of the Agreement, if the Appellant – Builder fails to deliver possession of the apartment within the stipulated period, the Respondent – Flat Purchaser has to wait for a period of 12 months after the end of the grace period, before serving a Termination Notice of 90 days on the Appellant – Builder, and even thereafter, the Appellant – Builder gets 90 days to refund only the actual installment paid by the Respondent – Flat Purchaser, after adjusting the taxes paid, interest and penalty on delayed payments. In case of any delay thereafter, the Appellant – Builder is liable to pay Interest @9% p.a. only.

6.5. Another instance is Clause 23.4 of the Agreement which entitles the Appellant – Builder to serve a Termination Notice upon the Respondent – Flat Purchaser for breach of any contractual obligation. If the Respondent – Flat Purchaser fails to rectify the default within 30 days of the Termination Notice, then the Agreement automatically stands cancelled, and the Appellant – Builder has the right to forfeit the entire amount of Earnest Money towards liquidated damages.

On the other hand, as Clause 11.5 (v) of the Agreement, if the Respondent – Flat Purchaser fails to exercise his right of termination within the time limit provided in Clause 11.5, then he shall not be entitled to terminate the Agreement thereafter, and shall be bound by the provisions of the Agreement.

6.6.   Section  2  (r)  of  the  Consumer  Protection  Act,  1986

defines ‘unfair trade practices’ in the following words :

‘unfair trade practice’ means a trade practice which, for

the purpose of promoting the sale, use or supply of any

goods or for the provision of any service, adopts any unfair

method or unfair or deceptive practice …”, and includes any

of  the  practices  enumerated  therein.  The  provision  is

illustrative, and not exhaustive.

In Central Inland Water Transport Corporation Limited

and Ors. v. Brojo Nath Ganguly and Ors.,4 this Court held

that :

“89. … Our judges are bound by their oath to ‘uphold the Constitution and the laws’. The Constitution was enacted to secure to all the citizens of this country social and economic justice. Article 14 of the Constitution guarantees to all persons equality before the law and equal protection of the laws. This principle is that the courts will not enforce and will, when called upon to do so, strike down an unfair and unreasonable contract, or an unfair and unreasonable clause in a contract, entered into between parties who are not equal in bargaining power. It is difficult to give an exhaustive list of all bargains of this type. No court can visualize the different situations which can arise in the affairs of men. One can only attempt to give some illustrations. For instance, the above principle will apply where the inequality of bargaining power is the result of the great disparity in the economic strength of the contracting parties. It will apply where the inequality is the result of circumstances, whether of the creation of the parties or not. It will apply to situations in which the weaker party is in a position in which he can obtain goods or services or means of livelihood only upon the terms imposed by the stronger party or go without them. It will also apply where a man has no choice, or rather no meaningful choice, but to give his assent to a contract or to sign on the dotted line in a prescribed or standard form or to accept a set of rules as part of the contract, however unfair, unreasonable and unconscionable a clause in that contract or form or rules may be. This principle, however, will not apply where the bargaining power of the contracting parties is equal or almost equal. This principle may not

  • (1986) 3 SCC 156.

apply where both parties are businessmen and the contract is a commercial transaction. …

  • These cases can neither be enumerated nor fully illustrated. The court must judge each case on its own facts and circumstances.”

(emphasis supplied)

6.7. A term of a contract will not be final and binding if it is shown that the flat purchasers had no option but to sign on the dotted line, on a contract framed by the builder.

The contractual terms of the Agreement dated 08.05.2012 are ex-facie one-sided, unfair, and unreasonable. The incorporation of such one-sided clauses in an agreement constitutes an unfair trade practice as per Section 2 (r) of the Consumer Protection Act, 1986 since it adopts unfair methods or practices for the purpose of selling the flats by the Builder.

  • In view of the above discussion, we have no hesitation in holding that the terms of the Apartment Buyer’s Agreement dated 08.05.2012 were wholly one-sided and unfair to the Respondent – Flat Purchaser. The Appellant – Builder could not seek to bind the Respondent with such one-sided contractual terms.
  • We also reject the submission made by the Appellant – Builder that the National Commission was not justified in awarding Interest @10.7% S.I. p.a. for the period commencing from the date of payment of each installment, till the date on which the amount was paid, excluding only the period during which the stay of cancellation of the allotment was in operation.

In Bangalore Development Authority v. Syndicate Bank,5 a Coordinate Bench of this Court held that when possession of the allotted plot/flat/house is not delivered within the specified time, the allottee is entitled to a refund of the amount paid, with reasonable Interest thereon from the date of payment till the date of refund.

8.1. In the present case, the National Commission has passed an equitable Order. The Commission has not awarded any Interest for the period during which the Order of stay of cancellation of the allotment was in operation on the request of the Respondent – Flat Purchaser.

The National Commission has rightly awarded Interest @10.7% S.I. p.a. by applying Rule 15 of the Haryana Real

  • (2007) 6 SCC 711.

Estate (Regulation And Development) Rules, 2017 from the date of each installment till 05.02.2017 i.e. till the date after which the Order of stay of cancellation of the allotment was passed; and thereafter, from the date of the Commission’s final Order till the date on which the amount is refunded with Interest.

  • We see no illegality in the Impugned Order dated 23.10.2018 passed by the National Commission. The Appellant – Builder failed to fulfill his contractual obligation of obtaining the Occupancy Certificate and offering possession of the flat to the Respondent – Purchaser within the time stipulated in the Agreement, or within a reasonable time thereafter. The Respondent – Flat Purchaser could not be compelled to take possession of the flat, even though it was offered almost 2 years after the grace period under the Agreement expired. During this period, the Respondent – Flat Purchaser had to service a loan that he had obtained for purchasing the flat, by paying Interest @10% to the Bank. In the meanwhile, the Respondent – Flat Purchaser also located an alternate property in Gurugram. In these circumstances, the

Respondent – Flat Purchaser was entitled to be granted the relief prayed for i.e. refund of the entire amount deposited by him with Interest.

  1. The Civil Appeals are accordingly dismissed, and the Final Judgment and Order dated 23.10.2018 passed by the National Consumer Disputes Redressal Commission is affirmed. The appellant is granted a period of three months from today to refund the amount to the respondent. All pending Applications, if any, are accordingly disposed of.





New Delhi,

April 2, 2019.