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Indian Law/Cancelling the purchase of property after registration and signing sale and Construction agreement



I have booked a flat, got the loan approved from HDFC, and registered the UDS on June 2011.
During that time the property construction was not started. Last month my builder has started and had sent me the demand letter for completion of foundation stage.
Now HDFC bank asks me to prepare a Non Judicial Stamp Paper for 0.5% of the total Loan amount which is INR 13800 during first disbursement, where as my loan letter dated June 2011 says Stamp Duty will be Maximum of INR 5000, When I enquired with HDFC, I was told that this year the State Govt. has increased the Stamp Duty and hence the new rates will be applicable during the first disbursement. I need to pay more for stamp duty because of delay from the builder..
I wish to cancel the deed once and for all with my builder and get the money I have paid till date.
Request you to let me know
1) Is it possible to cancel after registration of UDS and signing the sale and construction agreement

Thanks and regards,

It will depend upon terms and conditions of home-loan as well as agreement entered into with the builder.Normally, the stipulation in the loan agreement is that stamp-duty will be payable as per the actuals.So most probably it will be payable as per the actuals.Regarding cancellation of agreement with the builder and claim for refund of advance payment,it will depend upon relevant clause of the agreement entered into with him.Once you acquire ownership of the property ,you shall have absolute right to sell it to anybody as per your wish but not before that.  

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Arun Kumar Maitra


Contract Law,Companies Act,Sale of Goods Act,Partnership Act,Negotiable Instument Acts,Constitution of India,Arbitration Act,Consumer Protection Act,Maternity Act,Payment of Gratuity Act,Payment of Bonus Act,Shops & Establishment Act etc.The answer to the grievance of the particular online query depends on the facts of the particular case and law applicable to it.However,my comments relating to the various queries raised through the "All Experts" should not be treated as legal advices and should not at all be relied upon.I do not accept any responsibility for them.They will only give you some ideas about the probable merits of your cases.Ultimate actions/decisions in the matter may please be taken in consultation with the Legal Experts in the relevant fields.My purpose of giving the comments is to increase my own knowledge on the subjects and share it with others.It is purely of academic interest to me. I strongly feel the more knowledge we share,the more we shall be able to learn because there is neither any age nor any end to learning.


I have experience of dealing with matters relating to holdings of board/general meetings,maintenance of statutory registers,filing of necessary returns with the RoC,obtaining licenses for import,replies to Parliament Questions,dealing with the Parliamentary Committees,appearing before various courts to defend my employers,filing affidavits/counter -affidavits,preparing written statements/re-joinder,giving advice to management on complicated legal issues,preparation,drafting and vetting of contracts etc. I have more than 35 years of experiences to deal with the Company Law and Other Commercial Laws of leading Organisations in the country both in Public as well as Private Sectors.

Member,Inst. of Chartered Accountants of India Member,Inst. of Company Secretaries of India; Member,Bar Council of India Member,All India Management Association Member,Delhi Management Association Ex. Vice-Chairman,Durgapore Chapter of the I.C.A.I. Expert ,CA Club India Expert ,Lawyers Club India Expert,AllExperts Ex. Faculty ,I.C.S.I as well as I.C.W.A of India Retd. Co. Secy. & G.M.(Law)/NFL(A Mini-Ratna A Schedule Central P.S.U.),New Delhi Ex.V.P.(Secretarial Dept.),Jaiprakash Associates Ltd. Ex. Co. Secy.,MAMC(A Govt. of India Enterprise),Durgapore



Awards and Honors
Obtained ''A'' Grade Certificate in the Parliamentary Procedure from the Secy. General of Parliament in 1994-95.It was in connection with a training course conducted by the BPE for PSU Executives.

Past/Present Clients
I am presently working as a Company Secretary in Old World Hospitality Pvt. Ltd.located in Delhi.It is engaged in Hospitality Industry.It has Units in India and abroad.It has been given the responsibility to look after operation & Management of ''India Habetat Centre'' located at Lodhi Road,New Delhi.

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