• Flat booking cancellation refund as per new RERA law

I have booked a flat in a pre-launch stage in Mumbai on Apr-16 and had a agreement where builder put a clause that if I cancelled the flat ,they will deduct 10% of the apartment cost. This is a SRA project ,and I can't see any progress.That's why I want to cancel my booking. But as per The Real Estate (Regulation and Development) Act, 2016, which came into force on May 1, 2017, The allottee have the right to cancel/withdraw his allotment in the project . Provided that where the allottee proposes to cancel/withdraw from the project without any fault of the promoter, the promoter herein is entitled to forfeit 10% of booking amount for the allotment. The balance amount of money paid by the allottee shall be returned by the promoter to the allottee within 45 days of such cancellation. Now for cancellation builder is charging 10% of property value which is Rs 10,00,000L and i have already paid Rs 20,00,000 in cheque format. What are my legal options in this case?. How should i go forward with this issue?
Asked 7 years ago in Property Law
Religion: Hindu

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5 Answers

Sir, if you had cancelled the flat then the builder is bound to repay the excess amount paid by you. If he refuses then you can file a money suit claiming the remaining amount and also compensation .

But if you had not cancelled the flat then you can file a consumer case against the builder compelling them to deliver the property within a stipulated time and you can also Claim damages for loss caused by lack of service .

Hope my reply helps you.

Johnu Kanta Bhuyan
Advocate, Guwahati
194 Answers
3 Consultations

Hi, if the builder is not delivering the project as per the agreement , or the work is delayed by him , you instead of cancelling the agreement , can ask for refund of your amount along with interest in the district consumer Mumbai ..it is advisable to approach consumer forum and file a case against the builder, since he is the one who has defaulted in his part as per the builder buyer agreement .. It will much more easier to guide if you can attach the builder buyer agreement ..

Hemant Chaudhary
Advocate, Gurgaon
4630 Answers
67 Consultations

The new Real Estate Regulation Act (RERA) will enable homebuyers to exit real estate deals smoothly. The Act, which came into force on May 1, stipulates that homebuyers can cancel allotment of the apartment booked with a builder at any stage even if there is no default on the part of the developer. The builder is also bound by law to return the money collected from buyers within 45 days, after deducting the booking amount.

Also, if the real estate developer fails to give possession of the apartment or complete the project as per the stipulated time, the homebuyer can terminate the agreement and is entitled to refund of the amount paid with interest in 45 days of such termination.

As per RERA, if a homebuyer defaults by not paying to the developer on time and such a default persists for an agreed upon the number of months, the developer can terminate the agreement and cancel the allotment made to the buyer.

The provision on cancellation is fair. “No buyer will want to give away 10 percent of the booking amount unless he is under pressure to exit. At present, there is no exit clause in the builder-buyer agreement, only a one-way entry for the buyer. A builder is allowed to return the amount in case he decides to discontinue the project,”

T Kalaiselvan
Advocate, Vellore
86950 Answers
2334 Consultations

Dear sir as per the information provided by you it seems that you will be entitled to get full amount with interest. If the time for possession has not arrived then issue a notice to him that he has not constructed anything in the given duration and ask him to construct the property.

Go to consumer court for resolution of any dispute in this matter.

Gopender
Advocate, New Delhi
384 Answers

1. the clause put by the builder is illegal.

2. You can cancel the booking and he will be bound to refund you the booking amount after deducting 10% of the booking amount.

3. If he refuses to refund the amount as stated above, you can file a complaint case against the builder alleging deficiency in service and unfair business practice claiming refund of the balance amount with interest, damage and cost.

4. It is a good case to win.

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

Krishna Kishore Ganguly
Advocate, Kolkata
27430 Answers
726 Consultations

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