• Refund from Builder

Dear Sirs,
In pre-launch stage I had booked a 2 BHK flat on 3rd floor in Karad, (Dist-Satara, MH) in March-2012. Total building is designed for 4 floor. Total cost of my 2BHK flat is 24.50 L. As initial payment I paid to builder around 7.50 Lakhs by cheque & 4 Lakhs by cash (total 11.5 Lakhs) for getting less rate. Accordingly builder given me payment receipts against cheque & cash ( I have cash receipt only Xerox copy). I have booking form, in which mentioned information like paid amount details (cheque & cash), flat no, floor no, building name etc. There is one conditions also mentioned in booking form like advance payment can't refund in case of cancellation, other conditions are as regular. 
After one year passed he informed me that he is in process of getting permission for 4th floor construction. (i.e while booking, builder had not permission for construction of 4th floor, Unfortunately I was unaware of it). Every time while making follow, he was telling me that with in short period he will get permission for 4th floor construction & he will continue construction of 3rd & 4th floor at same time. But he didn't get permission yet. Already builder constructed 2 floors & given possession to others.
Last 6 months back, after completed 5.6 yrs. (August-16), I informed him orally that I'm going to cancel my flat & I need my money back with interest. He mentioned that he would return the money in 3 months with 12% interest because delay is from his side. However now it has been close to 6 months and has not returned the money. I have been following up with him and every time he gives me some silly reason & postponing payments. I think he is not willing to give money back.

So please tell me, Can I take the legal way of getting the money back? What are the chances that I will get my money back? Can I get money with interest ? If yes, then how much interest?
Asked 7 years ago in Property Law
Religion: Hindu

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13 Answers

Hi

Now don't wait for his sweet time to perform the contract send him a legal notice.

If the notice is not responded positively sue him in a consumer forum

You can get your money with interest and compensation

Thresiamma G. Mathew
Advocate, Mumbai
1642 Answers
212 Consultations

5.0 on 5.0

Since it was a pre-launch the builder agreed to sell the proposed flat to you at a discounted price. You agreed and have paid him a sum of Rs.11.5 Lakhs, the builder has also acknowledged receipt for the said sum. Now after the lapse of more than 5 years, the builder is unable to construct your flat as he was unable to get permission to construct the 4th floor. He is liable to refund the full amount collected from you together with interest @ 12% pa until realization/payment.

For this you will need to first and foremost issue a legal notice through an advocate asking for cancellation and consequent refund of your entire monies together with interest, all of this to be complied within 15 days.

After the lapse of 15 days, if the builder fails to comply, then proceed to file the consumer complaint against the builder seeking refund with interest and litigation expenses along with compensation for Deficiency in service.

Contact a good consumer court advocate for this and start the process at the earliest, no point waiting anymore.

Kiran N. Murthy
Advocate, Bangalore
1298 Answers
194 Consultations

5.0 on 5.0

1) cancel the booking as builder has failed to obtain permission from muncipal corporation

2) seek refund with interest

3) if builder fails to refund your money file complaint before consumer forum seek refund with itnerest

4) also claim litigation costs and compensation for mental torture undergone by you

Ajay Sethi
Advocate, Mumbai
95217 Answers
7612 Consultations

5.0 on 5.0

Hello,

1) You can certainly get your money back with interest as the builder failed to fulfill his part of the contract and his promise to refund.

2) Send him a legal notice demanding refund of the money as the project has dragged on endlessly. If he fails to pay up, you can file a civil suit for recovery of your money with interest at 18%per annum.

3) You also have the option to file criminal cases against him and bring him under pressure to pay you back without any delay.

S J Mathew
Advocate, Mumbai
3564 Answers
175 Consultations

5.0 on 5.0

Immediately issue a legal notice and demand your money back with interest

if the builder is not ready to pay your amount along with interest then you may file a case before consumer court for return your money along with interest and compensation.

don't cancel the deal because if you cancel the flat then as per agreement the builder is not legally bound to return your money, as you informed.

Feel free to Call

Nadeem Qureshi
Advocate, New Delhi
6307 Answers
302 Consultations

4.9 on 5.0

1) documents are sufficient for filing complaint with the consumer forum against builder

2) even if you have xerox copy of receipt of payment made in cash builder cannot deny receipt of cash payment as he has in booking form acknowledged receipt of cash

3) if builder has not been able to obtain permission from muncipal corporation you are at liberty to cancel the booking . Builder is bound to refund your money with interest

Ajay Sethi
Advocate, Mumbai
95217 Answers
7612 Consultations

5.0 on 5.0

Hello,

1) You have sufficient documents to go ahead with a legal notice and a valid case where you can certainly get a refund with interest.

2) The photocopy can always serve as secondary evidence and through court compel him to produce the originals if need be.

3) At any instance you are not losing or forfeiting your right to recover the money you paid. Engage a lawyer locally to assist to Iv I us

S J Mathew
Advocate, Mumbai
3564 Answers
175 Consultations

5.0 on 5.0

The above documents would be more than sufficient for purposes of fling the complaint against the builder.

As far as the clause in the booking form "Cancellation" is warranted due to builders inability to obtain sanction for construction of fourth floor and not due to your inability to proceed with the transaction. Hence full amount has to be refunded together with interest.

Kiran N. Murthy
Advocate, Bangalore
1298 Answers
194 Consultations

5.0 on 5.0

1. File a complaint case against the builder before your local District Consumer Dispute Redressal Forum alleging deficiency in service and unfair business practice claiming payment of an amount which will be required for you to buy a flat of same measurement in similar locality after deducting the balance amount which you shall have to still pay him, with interest, damage and cost.

2.You have a very good case since he has illegally offered you to book the flat and pay the advance by fraudulently informing you that he has already got the sanction for completing the construction.

3. Also lodge a police complaint against him for cheating and defrauding you by taking booking amount from you by falsely informing you that he has already availed sanction for construction of the said flat which will be completed with in two years and not refunding you the said advance amount taken by him.

Krishna Kishore Ganguly
Advocate, Kolkata
27245 Answers
726 Consultations

5.0 on 5.0

you must approach consumer forum.

the Supreme court has clearly held that the consumer courts can give relief not only for the breach of contravts but also for the delay of delivery of possession of flats.

You must seek compensation for both.

Saptarshi Banerjee
Advocate, Kolkata
220 Answers
6 Consultations

4.5 on 5.0

1. Photocopy of a document is not ordinarily accepted as a valid evidence. However, you have other original document being the booking form to prove that the builder have taken the said cash.

2. You should file the complaint case as advised in my last post.

3. To ensure that he does not take the plea that as per the agreement you can not demand the refund of the advance amount paid by you (though the said clause is illegal in the given circumstances) you should ask for payment of the amount required for buying the same type of property after deducting the amount yet to be paid by you to him.

4. It is a good case to win.

5. Engage a local lawyer having expertise in this field.

Krishna Kishore Ganguly
Advocate, Kolkata
27245 Answers
726 Consultations

5.0 on 5.0

So please tell me, Can I take the legal way of getting the money back? What are the chances that I will get my money back? Can I get money with interest ? If yes, then how much interest?

This is as good as cheating, the builder may be booked under criminal laws too for having cheated you with false promises and having taken your money.

You issue a legal notice mentioning all the incidences that took place after you have booked this flat, put entire blames on him and intimate him that you are cancelling the booking and ask him to return the entire amount with interest or else you would initiate legal proceedings agaisnt him through both civil and criminal laws.

If the builder is not complying with the demand or no response, you may drag him to consumer forum seeking refund and compensation for his deficient services and the mental depression you suffered due to this.

T Kalaiselvan
Advocate, Vellore
85420 Answers
2239 Consultations

5.0 on 5.0

As condition mentioned in booking form that "Advance payment can't refund in case of booking cancellation" will create any problem during legal case?

The lopsided conditions may favor the builder but it is not legally valid.

On the basis of documentary evidences it can be established that the builder has received the money towards booking, hence he is liable to return the same with interest. You can proceed with legal steps against him for recovery

T Kalaiselvan
Advocate, Vellore
85420 Answers
2239 Consultations

5.0 on 5.0

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