Point of Law: Housing Board – Delay in execution of registered Sale Deed – Delay in project and dispute between Respondents – Petitioner should not suffer.

ORDER :

1. This Writ Petition is filed seeking to issue a writ of Mandamus declaring the inaction and inordinate delay in executing and registering sale deed in respect of Flat No.B2-303, B2 Block, Indu Aranya Pallavi, Survey No.117 (Part) of Tattiannaram village, Hayathnagar Mandal, Rangareddy District in favour of the petitioners despite receiving entire sale consideration as being illegal and arbitrary and for a consequential direction to the respondents to execute and register sale deed in favour of the petitioners in respect of the above flat.

2. The case of the petitioners is that first respondent is the owner of the land admeasuring Ac.50-00 in Sy.No.117 of Tattiannaram village, Hayathnagar Mandal, Rangareddy District and the said land was given to the second respondent for development. The petitioners have booked the subject flat vide agreement of sale dated 02.3.2009 of the second respondent project for a sale consideration of Rs.22,38,500/-. The petitioners paid the entire amount. The second respondent forwarded the name of the petitioners to first respondent along with revenue share on sale consideration received from the petitioners and requested the first respondent to depute their officials to present the sale deed. The Executive Engineer executed sale deeds in favour of some of the purchasers only but did not execute sale deeds in favour of the petitioners and some others though they have paid the full basic sale consideration of the flat and also the cost of the major amenities like car parking and club house membership fee etc way back in the year 2011. In this connection the petitioners submitted letters requesting the VC&MD of the Housing Board to execute sale deed in their favour but in vain. Hence the Writ Petition.

3. Counter affidavit has been filed on behalf of the respondent Nos.1 and 3 wherein it was contended that the developer had to complete the project by 25.8.2010, but the developer failed to complete the same. However, in view of the delay in obtaining approvals and implementation of the project, the revenue share payable by the developer has been increased which was accepted by the developer, vide letter dated 03.5.2007. The developer company i.e. the second respondent failed to complete the project even by the extended dated of 30.6.2011. When the developer failed to complete the project, failed to construct the LIG Housing in 5% of the project area, failed to provided the requested information on sales/registration of units etc., and also in view of the short remittances of the revenue share due to APHB, non-payment of interest for the delayed payment of development fee, non-following of transparent method in selection of purchasers and in view of the pending investigations by the Vigilance and Enforcement Department and the CBI and the pendency of the developer’s request for second extension of time with the Government, the APHB took a decision to stop further registrations of the units in favour of the remaining purchasers in the project and insisted on the developer to complete their obligations under the Development Agreement before seeking execution and registration of sale deeds in favour of purchasers. It is further stated that it is the obligation of the developer to facilitate the execution of the sale deed and there is no obligation on the Housing Board and that the prospective buyers are not entitled to seek execution and registration of sale deeds in their favour till compliance of all the obligations of the developer under the Development Agreement.

4. Heard learned counsel for the petitioners and the learned Special Government Pleader attached to the office of the learned Additional Advocate General and Mr. D.Ranganatha Kumar learned Government Pleader for Housing.

5. During the course of arguments, the officers of Housing Board, who were present in the Court, have instructed the Government Pleader and upon instructions, it was represented that on receipt of 2% of the sale considerat