• Refund of amount paid for flat against cancellation

I had booked a flat with M/s Vedic Realty for their project in Rajarhat, Kolkata in Dec 2013 and have till date paid over 11.50 lacs against demands raised by them from time to time. The booking was done through their Marketing agent, M/s Indiabulls Distribution and loan availed from Central Bank of India. As per the terms of the Agreement drawn in March 2014, the builder had committed handover of the unit within 36 months from the Agreement date with an additional grace period of 6 months. This above period got over in September 2016 but the project is nowhere near completion. I had met Vedic Realty representatives alongwith team from Indiabulls in May 2017 and was apprised that the project completion will take more time. I had then only enquired the process for cancellation as the project was delayed and was asked to route the same through M/s Indiabulls. I was also committed that Vedic will not levy any cancellation charges since the delay was at their end. I duly sent the Cancellation request to M/s Indiabulls team which was forwarded by them to concerned Vedic team on 02/08/2017. It is now more than 3 months that I have been following up with them over mails, phone calls and even through personal visits to their office. They are however delaying the matter on purpose and not clearing my refund. They had initially committed to start clearing the dues to their customers from October 2017 onwards. During my last visit to their office last week, they pretended that they had never received the cancellation for my unit from M/s Indiabulls and asked me to submit a request again. However, I have email confirmation from their end which says that the cancellation request was recieved and they were processing the same. Requests made to their Director also through mails and phone calls have failed to get me any response. I am forced to keep paying the EMI to the bank every month and am losing money on that account too. I am currently without a job and have just started a new business which is yet to take off. I am somehow managing my expenses from my savings. It is a sheer case of mental and financial harresment that is been meted out to me by Vedic team. Please advise as to what steps I should take for urgent recovery of my dues?
Asked 5 years ago in Property Law
Religion: Hindu

6 answers received in 30 minutes.

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19 Answers

1) file complaint against builder before consumer forum and seek orders to direct builder to refund your money with interest

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

Ajay Sethi
Advocate, Mumbai
89849 Answers
6516 Consultations

5.0 on 5.0

Hello,

Issue them a legal notice.

Subsequently file a case in the consumer forum, as per the rate of the flat.

Claim the damages for mental harassment

Also claim the money towards the legal expenditure.

Regards

Anilesh Tewari
Advocate, New Delhi
17968 Answers
377 Consultations

5.0 on 5.0

You will have to send them a legal notice, through an advocate.

You can directly approach the consumer forum, it is not necessary to engage a layer.

However, I would advise you to engage a lawyer for drafting the complaint so that all the legal clauses are taken care of.

Regards

Anilesh Tewari
Advocate, New Delhi
17968 Answers
377 Consultations

5.0 on 5.0

You don’t need to send them legal notice

2) correspondence exchanged with builder would suffice

3) file complaint against builder before consumer forum directly

Ajay Sethi
Advocate, Mumbai
89849 Answers
6516 Consultations

5.0 on 5.0

This sorry state of affairs unfortunately grapples most part of real estate sector in India.

Anyway there is nothing to worry.

If you file a case before the consumer forum then apart from full refund you would be awarded with adequate damages and compensation out of this delay.

Any one sided terms in the agreement though signed by you would be considered as unconscionable and hence not binding on you.

Devajyoti Barman
Advocate, Kolkata
22515 Answers
416 Consultations

5.0 on 5.0

Approach the Consumer Forum and seek immediate release of your entire deposit of 11.50 lacs with interest in lieu of cancellation of your booking.

Send a legal notice before you take the above step.

Vibhanshu Srivastava
Advocate, Lucknow
9444 Answers
255 Consultations

5.0 on 5.0

It will take approximately 1-2 years for the consumer forum to decide.

At times the company comes to settle the issue, once the case is filed in the consumer forum.

Regards

Anilesh Tewari
Advocate, New Delhi
17968 Answers
377 Consultations

5.0 on 5.0

Disposal depends upon pendency of cases in consumer forum

2) it would take around 2 years or so

Ajay Sethi
Advocate, Mumbai
89849 Answers
6516 Consultations

5.0 on 5.0

Hi, send them a legal notice through an advocate .. It is advisable to approach through lawyer to avoid legal loopholes .. If they fail to refund the amount you can file a consumer complaint , again with the help of a lawyer .. The consumer courts also grants a compensation of 18 per annum and legal expenses .. The proceedings may take 12 -15 months

Hemant Chaudhary
Advocate, Gurgaon
4627 Answers
67 Consultations

4.9 on 5.0

About an year.

if good sense prevails, your builder might enter into a compromise with you.

Vibhanshu Srivastava
Advocate, Lucknow
9444 Answers
255 Consultations

5.0 on 5.0

As per my experience while handling similar cases in West Bengal State Consumer Redressal Commission the time is around 1- 2 years,

Devajyoti Barman
Advocate, Kolkata
22515 Answers
416 Consultations

5.0 on 5.0

Dear Client,

You need to file a case in consumer forum. Generally proceeding in consumer court in these days is faster than any other courts.

Avik Ghosh
Advocate, Kolkata
6 Answers
1 Consultation

4.8 on 5.0

Sir we cannot anticipate the time but however depending on case to case a consumer court may take up to 1. 5 years to 2 years in the final judgement.

Hope my reply helps you.

Johnu Kanta Bhuyan
Advocate, Guwahati
194 Answers
3 Consultations

5.0 on 5.0

Given the situation, you have 2 options

first one to file a complaint before the Honourable Consumer Court as it was rightly suggested or

you may approach the Real Estate Regulation & Development Authority under Section 29 & 30 of RER Act for the appropriate reliefs.

Rajashekar
Advocate, Bangalore
584 Answers
4 Consultations

4.8 on 5.0

1. File a complaint case before the District Consumer Dispute Redressal Forum (Barasat in your case) against Vedic Reality and also Indiabulls alleging deficiency in service and unfair business practice claiming refund of the entire amount paid by you with interest, damage and cost.

2. The problem faced by is very common and once you file the case, they will approach you with offer of settlement which you should refuse to accept.

3. The case will be expected to be disposed of with in 1 to 2 years and it is a good case to win.

Krishna Kishore Ganguly
Advocate, Kolkata
26833 Answers
726 Consultations

5.0 on 5.0

1. You have already sought the demand for justice which is a legal requirement for filing a case.

2. You can now file the consumer case as suggested in my last post.

3. Since litigation before the Court is s specialised matter, it may be considered as prudent on your part to take the guidance of a lawyer having expertise in this field.

Krishna Kishore Ganguly
Advocate, Kolkata
26833 Answers
726 Consultations

5.0 on 5.0

You have to immediately send a legal notice demanding the refund of the booking amount with interest from the date of letter seeking cancellation till the date of settling the amount.

You can give the details in the legal notice about the reason for cancellation and the subsequent events.

If the builder is not responding then you may drag him to the consumer forum for relief and remedy

T Kalaiselvan
Advocate, Vellore
80016 Answers
1674 Consultations

5.0 on 5.0

Do I need to send them any letter from a lawyer or can I directly file a complaint before the Consumer forum. I have sent them a final mail today asking for refund of my money within 7 days failing which I would be initiating legal action for recovery of my dues at their risk, cost and consequences. Do I need to follow this up with recovery from letter from a lawyer or can I directly approach Consumer forum to register my complaint?

If you have already sent the demand notice by yourself, then you may approach the consumer forum directly and need not send a lawyer's notice once again for this.

T Kalaiselvan
Advocate, Vellore
80016 Answers
1674 Consultations

5.0 on 5.0

How much time does it generally take for Consumer courts to pass judgement on such cases? Does it entail a long drawn legal process?

The consumer cases in the present trend may take at least two years for disposal.

Have you tried anything through the latest RERA rules.

RERA effect: Homebuyers can now exit the real estate project at any stage

The builder is also bound by law to return the money collected from buyers within 45 days, after deducting the booking amount.

“The allottee shall have the right to cancel/withdraw his allotment in the project as provided in the Act: 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 the booking amount paid 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,” says the rule.

T Kalaiselvan
Advocate, Vellore
80016 Answers
1674 Consultations

5.0 on 5.0

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