- There is no guideline for refunds all deposited amount and also for deduction of any amount but once you have signed the sale agreement, you are legally bound to follow it.
- As per courts, in some of the cases developer are right in deducting the booking amount in the event of cancellation.
- Legal standing on deduction of Earnest Money varies from case to case.
- In case an agreement containing earnest money clause is not signed between the buyer and the developer, the developer can’t deduct earnest money on booking cancellation.
- Since, you have not signed any builder buyer agreement , then the Builder can’t deduct any amount from the deposited by you.
Better you should give a written notice to the Builder after narrating the fact , that as per law ,he has no right to deduct any amount as there is no signed agreement for the same .
If, the builder insist on cutting the amount , then you have to approach Consumer court of your area for the same.
Sure, you will get relief .
Good luck and dont forget to positive rating.