SHRI KHODAL CORPORATION

Introduction to Shri Khodal Corporation

Shri Khodal Corporation is a builder operating primarily in Gujarat. While the company engages in construction projects within the state, a closer examination reveals some legal challenges they have faced concerning compliance with regulatory standards.

Legal Case Overview

In total, Shri Khodal Corporation has been involved in two notable legal cases concerning their operations:

1. Cases won: 0
2. Cases lost: 1

Details of the Legal Case

The single case against Shri Khodal Corporation involved an allegation from an appellant that the builder accepted more than 10% of the total cost as advance payment without a registered agreement for sale, a violation of Section 13(1) of the Real Estate (Regulation and Development) Act (RERA). In response, the builder claimed that any delays in completing the agreements were due to the COVID-19 pandemic, assuring that remaining units would be delivered on time. Ultimately, the court ordered the builder to pay a penalty of Rs. 30,000 and mandated the registration of agreements for all units sold.

Patterns and Common Factors in Cases Lost

• Regulatory Compliance: The case lost by Shri Khodal Corporation stemmed from not adhering to RERA regulations, particularly the mishandling of advance payments without properly formalized agreements. This indicates a pattern of compliance issues related to legal frameworks governing real estate transactions.

Patterns and Common Factors in Cases Won

• Mitigating Circumstances: It is worth noting that while the builder did not win any cases outright, they attempted to defend their practices by attributing delays to unavoidable circumstances like the pandemic. This suggests a reliance on external factors as a defense in legal matters.

Overall Assessment of Shri Khodal Corporation

Based on the provided data, Shri Khodal Corporation has faced scrutiny regarding its compliance with the legal frameworks governing real estate transactions. The fact that it has lost a case and has zero victories gives a cautious indication to potential buyers. It highlights the importance of doing thorough background research into a builder's legal standing.

Tips for Potential Buyers Considering Shri Khodal Corporation

1. Conduct a Background Check: Look into previous legal cases and the builder's compliance with local regulations. This can provide insights into their operational integrity.
2. Request Documentation: Always ask for copies of registered agreements, payment receipts, and any completion certificates before making significant payments.
3. Seek Testimonials: Connect with past clients to gauge their experiences, ensuring they provide reliable feedback about the builder’s process and product quality.
4. Understand the Current Market: Familiarize yourself with the current state of the real estate market and any impacts of external factors that might affect project completion timelines.

General Tips for Buyers When Selecting Any Builder

• Check for Licensing: Make sure the builder is licensed and registered with appropriate regulatory authorities to ensure legality in all transactions.
• Research Previous Projects: Look into the quality and completion times of previous projects undertaken by the builder.
• Examine Financial Stability: Assess the builder's financial health to avoid possible project abandonment.
• Stay Informed on Legal Obligations: Familiarize yourself with rights and obligations under the RERA Act to protect your investments.

Conclusion

In conclusion, while Shri Khodal Corporation has established a presence in Gujarat's real estate market, potential buyers should approach with caution due to their legal history and compliance issues. By being diligent in their research and understanding the ramifications of the builder's past dealings, buyers can make informed decisions about their investments.

Analysis of the cases filed against Shri Khodal Corporation, where the builder lost, revealed several key themes across the disputes. The cases primarily revolved around three critical areas: advance payment disputes, project delay claims, and non-compliance with the RERA Act.

In terms of advance payment disputes, the builder was found to have violated Section 13(1) of the RERA Act by accepting more than 10% of the cost as advance payment without a registered agreement for sale. This highlights a significant area of concern for buyers regarding financial dealings with the builder.

Project delay claims were another recurring theme. The builder attributed delays to the COVID-19 situation, which is a common reason many projects faced setbacks during the pandemic. However, the builder's assurance that the remaining units would be completed on time was not sufficient to mitigate the claims made by the appellants.

The most notable theme, however, was the builder's non-compliance with the RERA Act. The verdicts consistently pointed out the importance of registering agreements for sale, which serves to protect the interests of both builders and buyers. The builder's failure to do so resulted in legal consequences, including penalties.

The common triggers for litigation in these cases were primarily financial and temporal. Buyers were concerned about the builder's acceptance of large advance payments without secured agreements and the potential delays in project completion. The builder's defenses often revolved around the COVID-19 pandemic; however, this did not resonate with the courts, which prioritized compliance with existing regulations.

Ultimately, the builder lost these cases due to a combination of insufficient evidence to support their claims, non-compliance with the RERA Act, and a lack of registered agreements for sale. The patterns emerging from these disputes serve as a cautionary tale for potential buyers, emphasizing the importance of thorough legal scrutiny before making significant financial commitments.