• Builder not refunding money on cancelled project

I had invested 9.5 lacs including all taxes for a studio apartment in 'Shubkamna Advert - Signin' on assured return of 12% basis during Nov 2012. The project is located at Greater Noida and has 2/3/studio appartments. I was issued PDC for interest. I received a letter dated 12 nov 2014 stating that the studio apartment is scrapped and was offered to either take 2/3 BHK or refund which would be paid within 60 days or an interest of 14% would be paid for delayed period. I received 3 lacs and PDC of interest till Mar 2015. But Jan to Mar cheques bounced and I was regularly assured to pay the balance amount of 6.5 lacs. But as expected he does not attend my calls and I do not know how to recover. Pl adivse
Asked 7 years ago in Property Law
Religion: Hindu

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5 Answers

1) you are entire time refund with interest

2) if cheques have bounced you can file cheque bouncing case under section 138 NI act

3) you can also file summary suit to recover 6.5 lakhs with interest

4) you can also file complaint before consumer forum and seek recovery of Rs 6.5 lakhs with interest , litigation costs and compensation for mental torture undergone by you

Ajay Sethi
Advocate, Mumbai
95197 Answers
7607 Consultations

5.0 on 5.0

1. This is typical conduct of builders nowadays.

2. However there is nothing to worry as if you will file case against the builder you will not only get order of refund but compensation as well.

3. To put additional pressure file cheque bouncing case also.

Good luck.

Devajyoti Barman
Advocate, Kolkata
22920 Answers
497 Consultations

5.0 on 5.0

1. Since the cheques issued by him had bounced you had the most potent legal remedy of filing a cheque bounce case against him under section 138 NI Act, which would have acted as a great deterrent, but you missed the bus.

2. Now the only remedy for you is civil in nature i.e you can sue the builder in consumer forum to seek recovery of amount with compensation for mental agony.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

You have to issue a legal demand notice not only for the balance amount but for also the dishonored cheques towards the interest amount.

After this you can drag the buildr to the consumer court for damages due to deficiency of service and compensation for mental agony.

You can also file a money recovery suit in the civil court for the dues and balance along with interest for the entire due amount.

T Kalaiselvan
Advocate, Vellore
85398 Answers
2235 Consultations

5.0 on 5.0

Dear Concerned.

As you have received confirmation of cancellation and advise of refund - however the developer is not refunding ,

you can file a consumer case and a case for recovery of money - filing a civil suit for recovery of money would be a faster process in your matter as the developer as already made the part payment and delaying the rest.

You may feel free to contact us for free discussion on your subject.

Best of Luck

Atulay Nehra
Advocate, Noida
1309 Answers
58 Consultations

5.0 on 5.0

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