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  • Category: Indian Law

    Unauthorized Flat purchased at Gajularamaram, Hyderabad


    Have a query about registration of a flat? Want to know if it is legal or will it create an issue? Here, on this page our ISC experts have provided advice to resolve your query.

    I have purchased unauthorized flat which is in 5th Floor and the apartment has permission for Stilt +4 floors at Qutubullabur mandal, Gajularamaram village, Hyderabad, and the area comes under GHMC Municipality.

    The registration of the flat has been completed, and it has LRS and the builder has applied for BRS.

    Could you please advise whether the 5th floor is legally approved now or will I face any issues in the near future with the government authorities.
  • Answers

    5 Answers found.

  • Before going for any purchase of such flats one should go for a legal opinion and then only we should go for purchase. Otherwise, we will have to face problems.
    LRS will be given for the land but not for the building. Your builder applied for BRS. Once he obtains BRS for all the floors as constructed, you will not face any problem. Till such time it will be an illegal construction only and you may face problems if any government department takes any action. Did you take any loan for purchasing this property? Is it from PSU? If so did they go for a legal verification before sanctioning any loan? If they gave you a loan after verification, your papers are OK, In such a case, there will not be any problem.
    You follow up with your builder and see that he will obtain BRS on the fast track. Hyderabad is a place where you will find many problems in this Real Estate business. Many illegal transactions are taking place and the innocent buyer is suffering a lot. You better contact a good lawyer and get his opinion and act accordingly, That is the best solution


    drrao
    always confident


  • Before purchasing such a flat, you must take the legal opinion of the lawyer and he would see the different legal angles related to the flat you would like to purchase.Moreover such a consultation will boost your confidence in relation to finalise the deal. LRS will be applicable to the land but the same thing is not applicable the building.
    Your builder is interested for BRS and if the same is obtained, you would not face problems relating to the floor issues. You will have to wait for such a period and if you undertake constructional activities prior to that, it will be an illegal activity and you might be punished for such illegal activities from the authorities concerned.
    In case, you have taken a loan from a Nationalised Bank, the officer concerned would verify all the legal aspects before sanctioning the loan, Such a verification will be on your favour and you may consider that the building you want to have is free from legal complexities.
    In Hyderabad, you might have seen how the customers interested to occupy flats are cheated by the owners and hence, you need to have legal advice of reputed lawyer prior to setting the issues.

  • There were many similar questions asked in this section .

    That shows that many people had taken risks and bought such flats which did not have proper authorization. Probably they were attracted by some cost benefit or were convinced by the sweet marketing talks of the builder seller or agents. However there are chances for both the positive happening and the negative happening.
    Mostly people hope that things can be made legal and authorize in due course by political pressure and necessities. They feel that as it is a 'fait accompli' they will get due sanction and authorization . This used to be so in many cases. However after the incident of three Kerala flats which were demolished ultimately, we cannot say what will happen.

    As the land is legal and authorized you may get a proportionate right of ownership and use in the land. But the unauthorized flats will not get number or approval until they are regularized. So it will be just risk for you till everything becomes okay. There may not be an immediate risk of demolition. But what I will suggest is do not pay the fll amount until the builder gives you the proper authorised, sanctioned flat number ,completion and occupation certificate for the fifth floor included. At least that may keep the builder interest to follow up things in some way.

    If you had already pad full money, then you have to join all similar other owners in the same building and also in such nearby buildings and charter course of action jointly. There will be agents etc, who may promise regularization and protection and may ask money from you for this. A joint forum will come to help in such situation.
    If full money is paid get proper registered documents for sale and also undertaking from the builder and indemnifying you from the risks and undertaking to get authorization and proper conveyance of title and ownership. Then occupy the flats and start residing if otherwise good for occupying.

  • In Hyderabad area under the municipality there had been many such cases where the original permission was given only for G+2 or G+4 buildings but the builders had made additional floors and sold them to the gullible buyers. After that the builders applied for post facto permission for the additional floors by giving certain clarifications and other arguments. It depends on the local housing administration as what sort of action to be taken on such irregularities. In some places in our country where the administration is strict, they had demolished the illegal structures while in some other places they levy heavy fines and allow the additional floors and then regularise them and grant permission.
    You can find from the builders and other residents who have some such experience in this regard and you will come to know the fate of earlier cases in your area.
    As far my understanding goes in most of the places these irregularities are ratified by huge fines and if any illegal construction is there out of the plot then that would be demolished. In very rare cases the already constructed upper floors are demolished and that is probably the confidence factor that these builders are going for post facto approvals and permissions in these matters.
    Please keep a track of the permission application that your builder had submitted to the authorities.
    If a heavy fine is imposed then builder has to pay it to resolve the matter. If he asks you to share then do not pay him any money. He had cheated you by not telling the legal implications and now he has to suffer for that and pay the huge penalties.
    Please keep all the relevant papers safely and pressurise the builder to give you a copy of all the applications and papers submitted by him in the municipal office. You can show these to some good lawyer who can help you in understanding the legal intricacies in them.

    Knowledge is power.

  • Thank you Sir's for your valuable suggestions and advices :
    I have taken a loan from LIC HFL and they have checked the documents and approved the loan without any issue.
    I have also asked the builder to provide legal advice from a lawyer before registration.


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