Suite 10 (Level 3)

1, Link Road, Jangpura Extension

New Delhi-110014, India
Tel: +91 11 41511448
Fax: +91 11 24321308
E-Mail: saad@skaa.in

(By Speed Post/E-mail)

Dated: 26.08.2019

To

1. Mahalaxmi Infralandmarks (P) Ltd. 2. Rajrani d/o Nafe Singh 3. Satish Kuamar s/o Om Prakash
Flat No. 234, Ground Floor Pocket - 8, House No. 467, Kacchi Sadak House No.-300, Bijwasan Village
Sector - 12, Dwarka, New Delhi-110075 Mundka Village, Delhi-110041 Delhi-110061

4. Naresh Kumar s/o Nafe Singh

448, Gali Arya Samaj, Najafgarh
Delhi-110043

Subject: Legal Notice on account of serious fraud and breach of obligations

Dear Sirs and Mesdames,

We are instructed by Ms. Asha Vohra (our “Client”), bearing Customer Code – MV/11330, who is
the purchaser of a residential plot in the residential township project Mahalaxmi Valley (“the
Project”), in Bhiwadi purportedly being developed by Mahalaxmi Infralandmarks Private Limited
(“Mahalaxmi”). Despite paying all the installments for the purchase, our Client did not receive
possession of the said plot. Our Client has repeatedly requested for the refund of her monies along
with interest and you have constantly used delaying tactics to avoid the same. You have made
various deceitful promises and claims, at first, regarding the allotment of the plot and then with
respect to the refund of monies with no intention of ever coming through with them. As a
consequence, our Client has lost the value of her monies, not received anything in return, and has
suffered undue uncertainty and harassment. The circumstances, self-evidently, show that you have
no desire to abide by the regulatory and legal obligations.
In the notice below, we describe the factual circumstances of the transaction (A); and, in the
circumstances, highlight the apparent civil and criminal liability (B) and (C).
A. Factual Background

In the year 2014, our Client first invested a booking amount of Rs.80,000 in the Project. This
investment was procured on the basis of (mis)representations from you regarding the allotment of
the residential plot.

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 Suite 10 (Level 3)
1, Link Road, Jangpura Extension
New Delhi-110014, India
Tel: +91 11 41511448
Fax: +91 11 24321308
E-Mail: saad@skaa.in

On scrutiny of the status of the Mahalaxmi Valley project on the Rajasthan Real Estate Regulation
Authority (“RERA”) portal, our Client also discovered that the RERA registration status of the
Project is not available. Therefore, the Project has not even been registered under the RERA
registration and it is clear therefore that our Client was cheated into parting from their hard earned
money on the basis of false assurances from Mahalaxmi.
Ultimately, after waiting for almost 4 years and paying all the installments for the purchase over the
years, aware that you have failed in the allotment of the residential plot, our Client requested to have
her money refunded along with interest @18% per annum. In the past 2 years, our Client has made
multiple requests for the same using all possible ways of communication but it has been of no avail.
In the light of the above, it is apparent that you have been making fallacious promises to mislead our
Client.
We recount below a full chronology of events:
1. On 27.01.2014, our Client paid the booking amount of Rs. 80,000 for a residential plot
admeasuring 100 sq. yards in the Project. The receipt of the same was confirmed vide a letter
dated 10 February 2014 which also promised a provisional allotment “very soon”.

2. Our Client, on 15.03.2014, further paid an amount of Rs. 5,60,000 bringing the full amount paid
to you by her Rs.6,40,000. As per the terms and conditions mentioned in the brochure in the
years 2014-2015, she also started receiving the promised monthly returns on her investment. She
received a total of Rs.1, 21,482 from Mahalaxmi up till September, 2015. The terms and
conditions also mentioned that our Client would be offered possession within a period of 36
months from the date of booking.

3. Subsequently, the monthly payments stopped and you kept assuring our Client that the same
would be continued or our Client would be allotted a plot at the Project in lieu of her investment
within the specified time. Our Client pursued the matter with you over the years telephonically
as well as by writing frequent letters inquiring about the monthly returns and the status of the
project but to no avail.

4. In 2017, you assured our Client that by January, 2018, you would be handing over the plot
promised to our Client as per the original agreement and that the delay was on account of
several regulatory difficulties that the Project had been facing.

5. When you failed to honor your promise by January, 2018, our Client once again wrote to you in
February, 2018 and informed the company that she was no longer interested in seeking a plot in
the Project but rather wanted a full repayment of her investment along with interest.

6. You failed to respond to our Client’s demands and after a year of no response from Mahalaxmi
our Client after several letters was finally granted a meeting by Mahalaxmi which was also
attended to by the company’s lawyers on 25 February, 2019. After a detailed discussion, our
Client was given two options that you would either allot the plot or would refund the amount

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 Suite 10 (Level 3)
1, Link Road, Jangpura Extension
New Delhi-110014, India
Tel: +91 11 41511448
Fax: +91 11 24321308
E-Mail: saad@skaa.in

paid by our Client along with the interest. Our Client expressed her preference for the
repayment of the entire amount along with interest.

7. In March 2019, in spite of having already expressed her preference for a repayment along with
interest, Mahalaxmi again asked our Client to consider moving her investments to a different
project to far off locations or to make some further payments to get the plot registered in her
name. However, in light of your past conduct, our Client was not interested in investing any
further amounts with Mahalaxmi and again insisted on a refund along with interest.

8. In April 2019, after various failed attempts to get in touch with Mahalaxmi, our Client again sent
a reminder follow up email for the refund of her monies. To her shock, you replied asking her to
file a plot cancellation application and a refund request so that her dues could be processed. This
is despite Mahalaxmi already having agreed to process her refund along with interest earlier in
the year. It became apparent that you were trying to evade your obligations by delaying the
process and harassing our Client since no such requirement had been communicated to her
despite several meetings on the subject.

9. It is now clear that Mahalaxmi and its directors have conspired to dupe our Client to the tune of
the Rs. 6,40,000 by first promising her a plot in a Project for which no regulatory permissions
were taken from the Rajasthan RERA. Subsequently, after our Client’s persistent efforts you first
promised her to return the entire amount along with interest and when the time came to refund
our Client’s money, you made up an artificial requirement of a cancellation application.

10. In the circumstances described above, there can be no doubt that you have never had the
intention of actually refunding the amount to our Client. Indeed, you have deceived and misled
our Client through false promises and have exploited her to the tune of Rs. 6,40,000 along with
interest @18% per annum in addition to the wasted opportunity of these funds.

B. Violation of Real Estate Regulations

11. In addition to the breach of promises and misrepresentation listed above, your company is also
in violation of several statutory obligations under the Real Estate (Regulation and Development)
Act, 2016 (“RERA”).

12. On inspection of RERA records, it is clear that your company has not registered the Project
with the concerned authorities despite the requirement to do so after the enactment of RERA.
The very failure to register your project with RERA makes you liable for penalty under the Act.

13. Our Client invested in your company based on the representation from your side that the
construction would be completed soon after February, 2014 and no later than within a period of
36 months. It is now clear that the entire project was a sham as your company has failed to even
register the project under RERA which is compulsory for all real estate developers.

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 Suite 10 (Level 3)
1, Link Road, Jangpura Extension
New Delhi-110014, India
Tel: +91 11 41511448
Fax: +91 11 24321308
E-Mail: saad@skaa.in

14. Our Client has incurred loss on the money invested with your company for the past 5 years
without any interest or profit accruing to him on account of the same. This is a clear violation of
Section 12 of RERA:

12. Where any person makes an advance or a deposit on the basis of the
information contained in the notice advertisement or prospectus, or on the
basis of any model apartment, plot or building, as the case may be, and
sustains any loss or damage by reason of any incorrect, false statement
included therein, he shall be compensated by the promoter in the manner as
provided under this Act:
Provided that if the person affected by such incorrect, false statement
contained in the notice, advertisement or prospectus, or the model
apartment, plot or building, as the case may be, intends to withdraw from the
proposed project, he shall be returned his entire investment along with
interest at such rate as may be prescribed and the compensation in the
manner provided under this Act

Thus, the above section clearly lays out that your company is not just liable to compensate Our
Client for the loss caused over prospective interest income on account of the money paid to you
but to also return the entire amount invested till date along with interest from the date of
payment.

15. Your company has also failed in its duty under Section 11(3) wherein you were required to
provide a schedule for the completion of the construction to Our Client. Till date, you have not
adduced any reliable information as to the time period by which the project shall be completed.
Additionally, this evasion has curtailed Our Client’s right under Section 19(2) of RERA wherein
an allottee is entitled to know stage-wise time schedule of the completion of the project. Till
date, you have failed to provide any such details.

16. It is clear that as on date Our Client has suffered loss on account of your non-compliance with
the statutory requirements under RERA and as stated above, you are liable to return not only the
entire amount paid by Our Client along with interest thereon but to also pay Our Client a
compensation for the loss caused to Our Client due to investment that he made based on your
false promises and misrepresentations. Further, your company and its officers are also liable for
penal action under RERA for failing to register the Project with the concerned authorities.

C. Civil and criminal liability

17. Apart from developing an unauthorized project, your actions have clearly been designed to
swindle our Client and to enrich yourself. With the promise to allot the residential plot in 2014
basis you have harassed our Client and have failed to provide any assurance as to refunding her
the amounts paid to you. Throughout this period you have not accounted for our Client’s
money or the interest earned on it or the assured return prescribed by the terms and conditions

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 Suite 10 (Level 3)
1, Link Road, Jangpura Extension
New Delhi-110014, India
Tel: +91 11 41511448
Fax: +91 11 24321308
E-Mail: saad@skaa.in

of allotment. In this light, the actions of Mahalaxmi amount to several violations of the
Indian Penal Code, namely, dishonest misappropriation of property, criminal breach of
trust, cheating and other such offences for which our Client is ready to initiate criminal
action against you.
In addition to the above, our Client has – self-evidently – also suffered as a consumer, on account of
the severely deficient service that have been provided to him. Aside from financial loss, our Client
has also been subjected to mental harassment and undue inconvenience due to unfair trade practices
that have been adopted. Even as late as April 2019, when asked for the refund of the entire amount,
Mahalaxmi had not processed the same. Our Client is well minded to approach the appropriate
forum for redressal against Mahalaxmi as a consumer if such unfair actions persist.
In the light of the above circumstances, we hereby direct Mahalaxmi to return the entire amount of
Rs. 6,40,000 that has been received from our Client, along with interest @18% per annum
compounded, within a period of 15 days from the receipt of this notice. Should you fail to refund
the amount within this prescribed period, our Client shall be constrained to initiate criminal action as
well as civil proceedings before the concerned authorities for the loss caused to him, as well as the
sustained harassment that he has been subjected to owing to your fraudulent behavior.
A copy of this notice is being retained by our office for further actions, if required. Please govern
your actions accordingly.

Yours Sincerely
Saaduzzaman
Advocate

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