Dear Sirs, Greetings, In Month of April 2017, I booked a commercial space in the city area. Becasue it was 95% complete, I broke fixed deposit and paid 85% of total amount for booking. There is no singed agreement between us as I was not aware how to deal in buying new property. Now I changed my decision and don't want to buy it. After payment within 15 days, I told builder to refund my money. He told me he will refund after deducting 10% of total amount received by him (there is not written agreement). I requested post dated cheque as an assurance of refund. He is not ready to give. After one month, builder is approaching his lawyer and finalizing terms and conditions for deduction. Could you please help me to know if, 1. Builder can deduct 10% without a written agreement between 2 parties? 2. If he deducted 10% amount, how to handle this case or whom to approach? 3. Since I broke FD and paid him, can I collect interest from him on paid amount? 4. In requesting refund, I wrote emails (from my gmail account to his official server emails) to him to remind. Can these emails be used for legal case? 6. Legally, can builder deduct money saying that he lost clients because of my booking? Waiting for your response. Kind Regards. Note: All payment was done to
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Builder cannot deduct 10 per cent of money paid by you without written agreement
2) file complaint against builder before consumer forum and seek refund of 10 per cent paid by you
3) you cnnaot claim interest on fixed deposit form builder
4) emails are admissible in evidence
5) builder cannot deduct 10 per cent as you never signed any contract for deduction of 10 per cent
1. It is at your sweet will to decide to buy a property, but once you have entered into an agreement or paid the advance you cannot back out at your whims and fancies. The builder can deduct a reasonable amount as cancellation charges even if there is no agreement.
2. You should issue a lawyer's notice to the builder to refund the money, and if he does not do then file a civil suit for recovery of money.
3. Emails can surely be led in evidence.
In my opinion builders are aware about laws and also they have appointed lawyers. In according to the law, builder has to take only 10% advance before signing agreement. Without doing this builder has taken 85% of value. Will be there any basis for deduction of this reasonable amount? Builder told me that he will apply RERA Act for deduction. If he refund money by deducting 10% (example), can I file legal suit on him later to recover this 10% amount?
there has to be provision in contract for deduction of 10 per cent of sale consideration
2) admittedly this was not done
3) if builder deducts 10 per cent amount file complaint against builder before consumer forum and seek refund of 10 per cent of amount wrongly deducted by builder
1. The builder did not take the money from you at gun point. You paid him with your free consent.
2. There is sufficient equitable basis for a builder to deduct a reasonable amount as cancellation charges if the buyer backs out without any default of the builder.
1. builder cannot deduct 10% or any amount because this project has almost completed, 95% part has completed when you made payment hence it cannot be said that builder carried on the project on receiving booking from you a proposed buyer.
2. In debashis mukherjee case the supreme court has held that deduction will apply in the case where builder incurred loss due to cancellation of booking because when proposed buyer refunded his booking it will cause adverse effect upon the builder. when project is about to complete then cancellation of booking does not cause any loss to the builder.
1. you should file a case before the consumer forum on aforesaid ground and on the basis that no such terms is mentioned in the agreement.
Could you please help me to know if,
1. Builder can deduct 10% without a written agreement between 2 parties?
A registered sale agreement shall be the valid document for th terms and conditions therein to be complied properly by both the sides to enforce the terms and conditions through court.
In the absence of a proper sale agreement, the builder's claim appears to be exorbitant.
You may issue a legal notice and seek refund of the entire amount without any deduction except a minor amount towards the charges for this.
2. If he deducted 10% amount, how to handle this case or whom to approach?
Send a legal demand notice and then file a money recovery suit against him.
3. Since I broke FD and paid him, can I collect interest from him on paid amount?
The cancellation was in yor interest hence the claim for interest shall not be maintainable.
4. In requesting refund, I wrote emails (from my gmail account to his official server emails) to him to remind. Can these emails be used for legal case?
Yes, this can be treated as valid demand notice.
6. Legally, can builder deduct money saying that he lost clients because of my booking?
Waiting for your response.
In the absence of sale agreement this claim shall not hold good ground
