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Thursday, August 25, 2011

"I refuse to pay "legal charges" for the registration of my property agreement"

"I am Anna - No More Bribes"

From Mohandas Pai, ex-boss of Infosys to Mumbai's famous dabbawalas, and even sex-workers in Pune joined Anna Azare's movement against corruption. But not the builders in Pune!

Except Punjab chapter of Confederation of Real Estate Developers' Association of India (CREDAI), i feel, all builders are happy to pay bribes. Because, builders know that they can recover bribes from their property buyers - with profit!

For example, your builder asks you to pay "legal charges" - around Rs. 5,000 - in cash. Why? Because for the every agreement your builder pays minimum Rs. 600 to "Bhausaheb" - the Sub-Registrar and Rs. 300 to the senior clerk and on an average Rs. 1,000 to the rest of the staff in the sub-registrar’s office.

In general, your bribe is as much as the 'official fees' for the registration of your document. Means, even on your bribe, after deducting the salary of his staff (including advocate on a payroll), builder earns some handsome profit. As usual, at your cost.

You may or may not be a supporter of Anna Hazare's agitation but, I know, you are against corruption. You are against giving and taking a bribe. By refusing to pay "legal charges" to your builder, you can take a small step towards eradication of corruption.

Don't worry about the registration of your agreement. Generally, the builder's representative asks for the bribe money after your agreement is registered. Because, the builder's representative pays bribe when he collects your document.

If you say no to bribe and refuse to pay cash to the builder's representative, the builder has to pay from his own pocket. Because, your agreement is more useful for your builder than to you.

Your builder, besides paying bribes for the sanctioning authorities, had already spend a few crore rupees on advertising and sample flat, to promote fear of property price rise, to brainwash you that booking at the launch / pre-launch or under-construction stage is more profitable than buying a ready possession flat and to force you to sign the agreement. Because, your agreement is his only source of funds.

So, your builder will cough the registration charges and bribe out of his own pocket. Because, without your agreement, your builder will not get funds from the bank!

Who knows? By refusing to pay bribe for the registration of your agreement, you may motivate your builder to join sex workers in Pune, Mumbai's dabbawalas, and Mohandas Pai!

Related Stories:

1) Corruption in India has become worse: Ratan Tata

2) Why politicians don't want to fight corruption

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  1. Ravi,
    This is a good idea. I think i will try to do this next time I buy property. Thanks for the suggestion.

  2. Very gud effort RAvi...I will make sure that i will question the builder if he asks for the legal charges !

  3. Thanks, Harshal & Nitesh! Please, share your experience!

  4. Too late, I already paid up in April, the registration fees for my flat. Hope I had read this article earlier :)