• Cancellation of flat booking under subvention scheme due to builder wrong commitment

Booked a flat under subvention scheme with 80% advance payment thru housing loan. Builder committed to hand over the possession in july-aug 2018 but out of 7 towers 6 towers got constructed but the tower in which we have booked the flat has not yet started construction. They are saying they will complete it in 3rd phase and give the possession in 2020 or i can opt to have the flat in other towers.
which i won't and wanted to cancel the booking without paying any penalty by builder or bank.
please suggest.
Asked 7 years ago in Property Law
Religion: Hindu

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12 Answers

Hello sir , as per RERA provisions , you can file a case in consumer forum asking refund alongwith compensation due to delay with interest ..Before filing of petition a legal notice has to be served upon the builder .. The petiton shall be filed where the property is situated ..

Hemant Chaudhary
Advocate, Gurgaon
4631 Answers
67 Consultations

1. I am sure you have executed a sale agreement with the builder.

2.if that is so then the fallout of cancellation of booking by either of the aprties must be mentioned therein.

3. if the year 2020 is mentioned as the date of delivery of possession then there's still time for completion and I do not find any reason to make hurry to cancel the agreement.

4. Yes on wilful cancellation of an agreement the builder can impose a penalty bit the same mus not amount to forfeiture of huge amount .

if that is so then filing of complaint beofre the consumer forum is an option.

Devajyoti Barman
Advocate, Kolkata
23361 Answers
525 Consultations

1) ask builder to give in writing that tower possession would be delivered by 2020

2) builder must have registered with RERA which mentions possession date

3) you can cancel the booking after July 2018

4) seek refund of money paid with interest

Ajay Sethi
Advocate, Mumbai
97682 Answers
7906 Consultations

you should not request bank to stop paying EMI at this stage

only if possession not delivered on time then cancel booking

Ajay Sethi
Advocate, Mumbai
97682 Answers
7906 Consultations

builder would impose penalties on you if you cancel the booking .

you can take plea that no penalty is payable as builder not completed project on time

Ajay Sethi
Advocate, Mumbai
97682 Answers
7906 Consultations

1. Serve a lawyer's notice to the builder to seek delivery of possession or refund of the entire amount paid with compensation. If the builder does not accede to the demand then you may sue him for deficiency in service before the Consumer Forum.

2. The bank incurs no liability for the default of the builder to complete the construction and deliver the possession on time. So you cannot stop the EMI merely because the builder does not complete the project within the specified time.

Ashish Davessar
Advocate, Jaipur
30814 Answers
974 Consultations

1. This is purely agreement/contract based decision.

2. It is a tripartite agreement/contract.

3. One cannot say your rights and obligations without looking into such documents however you may cancel the booking but you have to pay heavy penalty and if you do not want pay such penalty then you may approach High Court or Civil Court alleging breach of contract on the part of builders. Please take wise decision.

Kishan Dutt Kalaskar
Advocate, Bangalore
6193 Answers
493 Consultations

Since you have taken loan from Bank amount has to be repaid to the Bank. As far as your case is concerned, since you have not got the possession till date you are in a position to file a consumer complaint. You can also ask for the amount that you have already paid alongwith compensation for delay, mental agony and also ask the builder to pay the EMI that you have paid till date.

Anupam Kirti
Advocate, New Delhi
90 Answers
2 Consultations

Dear Clint,

Complain to RERA, Project must have and compulsorily be registered with it.

Precise can be advised on perusal of BBA.

Yogendra Singh Rajawat
Advocate, Jaipur
23012 Answers
31 Consultations

If the delay is on the part of the builder, even the booking is under subvention scheme, you may opt for cancelling the booking blaming the builder for this decision.

You can mention that you were pushed to take this decision since the builder did not keep up his commitment that was originally assured when the booking was made in the initial stage.

You should communicate your decision to cancel the booking in writing by sending the same by registered post with acknowledgment.

Let the builder come out with his explanation or rules refusing to accept your demand to refund the amount in full, you can drag him to consumer forum for relief and remedy besides a complaint with RERA

T Kalaiselvan
Advocate, Vellore
87882 Answers
2366 Consultations

can i instruct my bank to stop interest EMI payment intimating them that i am going to surrender/cancel flat booking?

'

You may endorse a copy of the cancellation intimation sent to the builder, to the bank with a request to stop sending the EMI notification to you directly and may recover the loan amount from the builder in view of your decision to cancel the booking.

T Kalaiselvan
Advocate, Vellore
87882 Answers
2366 Consultations

is bank and builder can impose some penalities on me despite of the breach of contract by the builder?

Bank should not do that but the builder may impose the same for his own reasons which you can object and protest.

T Kalaiselvan
Advocate, Vellore
87882 Answers
2366 Consultations

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