SHIVALIK INFRASPACE L.L.P.

Introduction

In the competitive real estate market, prospective buyers often seek reliable builders who possess a strong track record. One builder that has recently attracted attention is Shivalik Infraspace L.L.P. Based in Gujarat, this company has faced scrutiny due to legal challenges. In this blog post, we will delve into the complaints against them, the outcomes of any legal cases, and what this might mean for potential buyers.

Overview of Complaints and Cases

Shivalik Infraspace L.L.P. has faced a total of 1 complaint, which resulted in the builder losing the case. The specific details of the case highlight some significant legal issues the company encountered.

1. The Gujarat Real Estate Regulatory Authority (RERA) brought a case against Shivalik Infraspace for accepting more than 10% of the sale price from allottees prior to registering an agreement for sale, violating Section 13(1) of the Real Estate (Regulation and Development) Act, 2016.
2. Shivalik Infraspace argued that their efforts to register the agreements were hindered by a lack of response from the allottees.
3. Ultimately, the authority imposed a fine of Rs. 10,60,000 on Shivalik Infraspace for their non-compliance with the regulations.

Analysis of Cases

Patterns in Cases Lost:

The case that Shivalik Infraspace lost revolves around non-compliance with important real estate regulations. The core issue was the premature collection of money without proper documentation—which indicates potential shortcomings in adherence to legal protocols and customer communication.

Patterns in Cases Won:

Interestingly, Shivalik Infraspace has not won any cases despite one being filed by them. This highlights a concerning track record for potential buyers, as the absence of legal victories may suggest challenges in the company’s operational practices or defensibility in legal contexts.

Conclusion

Based on the available data, Shivalik Infraspace L.L.P. carries a notable risk for potential buyers. The loss in their legal dispute and the imposed financial penalty raise questions regarding their compliance with real estate regulations. Prospective buyers should approach with caution, particularly considering this case against the backdrop of a highly regulated industry.

Tips for Potential Buyers

If you are contemplating purchasing property from Shivalik Infraspace L.L.P., consider the following:

1. Due Diligence: Conduct thorough research about the builder’s past projects and any existing legal challenges. Check for any additional complaints or ongoing cases.
2. Consult Experts: Seek advice from real estate professionals who are familiar with the builder and the local real estate landscape.
3. Understand the Regulations: Familiarize yourself with the Real Estate (Regulation and Development) Act, or consult with a legal expert to understand your rights and protections as a buyer.

General Tips for Selecting Any Builder

Regardless of the builder, here are some universal tips:

1. Check Reputation: Look for reviews and ratings from previous clients to gauge their experiences with the builder.
2. Project Quality: Visit completed projects if possible to assess the quality of construction and materials used.
3. Transparency: Ensure that the builder offers clear information about pricing, timelines, and processes. If resistances or delays occur, inquire directly to understand the reasons.

In summary, ensuring a safe and satisfying investment in real estate requires diligent research and consideration of builders' legal histories and operational practices.

Analysis of the cases filed against Shivalik Infraspace L.L.P. that the builder lost reveals several key themes across their legal disputes.

The cases against Shivalik Infraspace primarily revolve around three critical issues: non-compliance with the Real Estate (Regulation and Development) Act, 2016 (RERA Act), penalties incurred for accepting premature payments from buyers, and inadequate documentation in sales agreements.

In the highlighted case, the Gujarat Real Estate Regulatory Authority (Gujarat RERA) penalized Shivalik Infraspace for violating Section 13(1) of the RERA Act. This section prohibits builders from accepting more than 10% of the sale price from buyers before formally registering the agreement for sale. The builder's defense—that they were unable to complete the registration due to a lack of response from allottees—was ultimately inadequate to mitigate the penalty, leading to a financial imposition of Rs. 10,60,000.

Common reasons for litigation in these cases include the builder’s contesting of penalties, disputes over project delays attributed to other parties (in this case, the buyers' lack of response), and the builder's failure to adhere to regulatory requirements. A pattern emerges wherein the builder’s lack of compliance with the RERA Act, coupled with insufficient documentation and communication in sales agreements, frequently triggers legal action.

The builder's losses in these cases can be attributed to several factors, most notably non-compliance with the RERA Act and a lack of robust evidence to support their defenses. In each instance, the builder’s failure to meet regulatory standards and fulfill their obligations in sales agreements has resulted in legal repercussions, highlighting the importance for builders to ensure thorough compliance and transparency in their operations.