Agreement to sell house which cannot be transferred is illegal: Commission
Execution of agreement to sell for a house which cannot be legally transferred in favour of the purchaser is illegal and amounts to unfair trade practice.
While observing this, the District Consumer Disputes Redressal Commission in Chandigarh has directed two persons to refund Rs 8 lakh to a woman, Rehana Begum, a resident of Maloya Colony, Chandigarh.
In the complaint filed before the commission through the counsel, M Shahnawaz said that she approached two persons Rajinder Singh and Sikandar Pal for the purchase of a residential property of EWS category at Maloya Colony in Chandigarh by paying a booking amount of Rs 2 lakh on February 25, 2023.
However, these persons misrepresented facts in the agreement by assuring her that the house is transferable and that they would facilitate the conveyance deed/transfer in her name and a clause was inserted in the agreement with respect to the facts.
Rehana added that the house was allotted by the Chandigarh Housing Board under the EWS Rehabilitation Scheme. When Rehana enquired from the board, she came to know that the house cannot be transferred/resold by way of GPA and the entire transaction is void ab initio.
The woman said that the total price of the house was fixed at Rs 16 lakh and she had paid Rs 8 lakh to the persons.
On the other hand, both the persons denied the allegations in their replies. They said that Sikandar Pal is the owner of the house. He has already executed agreement dated February 25, 2023 in favour of the complainant.
The owner has also called the complainant several times for execution of the full and final agreement to sell, GPA/SPA and Will affidavit by coming to the District Court Complex, Sector 43, Chandigarh but she did not come. They said that there was no deficiency in service or unfair trade practice on their part.
After hearing the arguments, the commission said that the house was allotted by Chandigarh Housing Board under EWS Rehabilitation Scheme and the same cannot be transferred/re-sold by way of the general power of attorney.
