I have purchased the property in thane,property value is 75,00,000/-.I have paid builder 31,00,000/- but not made registration agreement.As my company got shut-down so i was not able to make payment as per slab wise.Builder has told me that he is going to cancel my flat is going to forfeit all my amount.He is a big shot builder how can challenge for same.He has written the clause in allotment letter,can he forfeit that amount or how can I get my all the amount back from him please need suggestion...
1. The builder can never forfeit any whole amount .
2.if there is a penal clause he can deduct a reasonable amount for the los suffered by him out of this cancellation.
3. So send him a legal notice asking for return of your whole amount.
4. IF HE DOES NOT RETURN THEN FILE A CASE IN THE CONSUMER FORUM WHEREIN YOU WILL GET FULL REFUND ALONG WITH DAMAGES AND COMPENSATION.
Inform builder of your inability to make further Payment as company has closed down request builder to cancel your booking and refund your money
2) if builder refuses File complaint against builder before consumer forum and seek refund of money paid by you with interest
3) also seek litigation costs and compensation for mental torture undergone by you
A. Don't worry, the builder has no right confiscate Rs.31 Lakh as penalty by dint of cancellation of flat as it is highly exorbitant and against to public policy.
B. Can you confirm the Agreement clause regarding cancellation of flat?. Generally, clauses in the agreement between the builder and purchaser will prevail under the Indian Contract Act subject to some restrictions. However, forfeiture of Rs.31 Lakh is not reasonable. In addition to this, the builder must prove the how much liquidated damages received by virtue of cancellation of flat. And the claiming liquidated damages shall be reasonable which means 10% of the Agreement Value.
C. You can issue a legal notice to the builder to refund the amount and lodge a complaint before the Consumer Forum under unfair trade practice. Moreover, you can file a suit for recovery of money before the Civil Court also.
The builder cannot forfeit the advance amount even if has got the clause endorsed in the allotment letter.
First of all he canot collect the advance amount to this extent without making an agreement in writing and registering the execution.
Thus even if there is an unregistered agreement existing, it cannot be enforced in law.
Therefore the allotment letter is mere contents favoring the builder and this lopsided condition is not maintainable in law or enforceable in law.
You can send a letter communicating your decision to cancel the booking and demand the refund of your advance paid amount immediately.
Failing to comply with the demand made in the legal notice or if the builder is not responding properly, you may initiate process either through consumer forum or through a civil court for recovery of the amount paid so far.
