• Builder is not giving the refund and compensation

Dear Sir/Madam,

We are two people who booked 5 flats in a pre launch offer in November 2012 in Bangalore with an upcoming builder at Rs.3000/Sft. We paid a booking advance of Rs.1 lakh for each flat. That time there were no approvals obtained by the builder. We have obtained the payment receipts and the payment was made through cheques. Recently, about a month back, they have got all approvals and the current price they are selling is 4800/sft. Since there was a huge difference in the price, the builder wants to get rid of us. He had sent a mail to execute the sale agreement and within no time he had sent a cancellation mail. Because of this, we have lost interest amount of Rs.25000 on each flat over two years and also, an opportunity loss of Rs. 27 lakhs on each flat as the present value of the flat is 75 Lakhs vs the initial price of 48 lakhs.
When we ask for compensation, builder is not responding. Please advise how do we handle this builder?
Asked 2 years ago in Business Law from Bangalore, Karnataka
1) since you have proof of payment of advance amount of Rs 1 lakh  and obtained receipt from builder you should call upon builder to enter into regd sale deed and deliver flat to you . you should mention that you are willing to make payment of balance amount as agreed . 

2) you should move consumer forum against builder for deficiency in service and seek orders to direct builder to enter into regd sale deed and hand over possession of flat to you . also challenge mail sent by builder cancelling your booking of flat 

3) also seek compensation from builder . 

4) in the alternative you can seek refund of money paid with interest at 18%pa
Ajay Sethi
Advocate, Mumbai
23123 Answers
1214 Consultations
5.0 on 5.0
This is quite common tactic of builders and should be pruned at the inception.
File a case before the consumer forum wherein claim for damages and compensation and completion of sale by way offering to pay rest money.
You should succeed in it.
Devajyoti Barman
Advocate, Kolkata
5160 Answers
54 Consultations
4.9 on 5.0
Dear Querist
First of all send a legal notice with the help of your lawyer and claim your amount with compensation or claim the flat, if the builder is not make the payment within notice period then you may file a civil suit for specific performance  or file a complaint before consumer court of your area.
Nadeem Qureshi
Advocate, New Delhi
3522 Answers
129 Consultations
4.9 on 5.0
Hi,
1. Send a legal notice demanding the completion of the deal and also demand to pay compensation .
2. If you are interested in the project offer him  the rest of the consideration as   agreed at the time of booking and ask him to do the registration of the flats.
3. if he fails to the demand file complaint seeking the relief in the consumer forum for the specific performance of the contract, for the possession of the flat, compensation for the mental harassment and financial loss.
Thresiamma G. Mathew
Advocate, Mumbai
1316 Answers
85 Consultations
5.0 on 5.0
1. Did you execute any agreement for buying those flats after being sanctioned?

2. If not, then send the builder a legal letter mentining about the verbal agreement you had entered into with him by paying advance and ask him to execute a formal sale agreement to this affect,

3. Since you already possess the evidence of having paid the advance amount, you can now file a complaint case alleging deficiency in service and unfair business practice claiming allotment/possession of tha said flats or payment of amount equal to the price of same floor area of flats in similar  locality, damage and cost,

4. It is a very good case to win.
Krishna Kishore Ganguly
Advocate, Kolkata
12043 Answers
228 Consultations
5.0 on 5.0
if at the time of booking you had no knowledge about approval then you have right to get those flats at the same rate which was fixed by the parties of contract because you have obeyed your part and remaining will be obeyed by the builder. then in the part performance of contract builder has no right to cancel it and if he do so then you have right to sue him for the specific performance of contract.
Shivendra Pratap Singh
Advocate, Lucknow
2729 Answers
41 Consultations
4.9 on 5.0
builder has no right to cancel this contract because it is partly performed. if you need to get those flats you should file a civil suit for specific performance of contract under specific relief act. once contract is made and earnest money is paid then no alteration can be made without consent of both parties. if you have not given your consent  then new contract is liable to be set aside and old contract will prevail between the parties. 
suit for specific performance of contract is maintainable because you have received irreparable loss because of lost of flats, builder will get illegal benefit by cancellation of flats , balance of convenience is in your favour and you have no other remedy except to file civil suit.
Shivendra Pratap Singh
Advocate, Lucknow
2729 Answers
41 Consultations
4.9 on 5.0

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