• Refund of advance booking for land

Made a down payment of 10% (to get the land papers for legal verification of title,etc) for a NA plot from a builder as part of a villa project wherein we could build the house ourselves. The builders terms in sale agreement was not acceptable so we cancelled our interest and asked for refund which the builder refused and does not respond. We did not enter into a sale agreement as the terms were not acceptable to be clear. Does this come under consumer court? It was brought from a builder project for personal use not an investment have subsequently made a purchase and built a house so intent is also clearly visible.
Asked 8 years ago in Civil Law

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13 Answers

Dear Client,

If there any condition/terms signed at the time earnest money paid.

Well, consumer court has jurisdiction.

Yogendra Singh Rajawat
Advocate, Jaipur
23085 Answers
31 Consultations

Hi, you can lodge a complaint before the Consumer Court for refund of the amount. Before filling the Complaint, first you have to issued legal Notice through the advocate.

Pradeep Bharathipura
Advocate, Bangalore
5625 Answers
339 Consultations

than the above project must have registered with RERA, complain to RERA.

Yogendra Singh Rajawat
Advocate, Jaipur
23085 Answers
31 Consultations

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

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

3) land was bought for personal use for building residential house . Complaint is maintainable before consumer forum

Ajay Sethi
Advocate, Mumbai
100007 Answers
8163 Consultations

Complaint is maintainable against builder before consumer forum

Ajay Sethi
Advocate, Mumbai
100007 Answers
8163 Consultations

Yes definitely it is governed by the consumer protection act. You should give him a notice  to refund the money paid by you. If either you do not get any reply from the builder or builder fails to reply within 30 days from the date of issue of notice then you can proceed under the consumer protection act and file a claim petition before the district consumer forum. You have to pay only 500 Rupees as Court fee for filing the case before the consumer forum. The receipt of down payment itself sufficient to prove that there was a transaction between the parties.

Shivendra Pratap Singh
Advocate, Lucknow
5127 Answers
78 Consultations

Yes this comes within consumer act, as well as the new RERA Act. You could file the complaint either before the consumer court or before the RERA authority, Maharastra.

If you have proof of having made the down payment of 10% in favour of the builder, then you could seek refund from the builder and also claim interest on this amount till date of realization.

You could also file a 420 case against the builder if he is not responding to your calls.

Get a legal notice issued against the builder seeking the refund of the above amounts together with interest from date of payment till realization, if the builder fails to comply with your demands, file the consumer complaint or a complaint before the RERA authority.

Kiran N. Murthy
Advocate, Bangalore
1298 Answers
194 Consultations

The consumer court shall have jurisdiction over the issue.

Produce the recipt.of payment along with booking documents.

Also contention of one sided agreement of builder with harsh terms and conditions can be take.

Pray before court for damages and interest , legal fees along with the advance amount.

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

Further what were condition of booking though builder keep condition of non refundable advance than also you have valid case for consumer court as builder has intentionally made such harsh agreement so file a complaint before consumer court for seeking refund and damages.

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

1. The builder of any size does come under the purview of consumer protection act.

2. So the deficiency of service in your case does make the builder liable for damages and compensation.

4. So without any worries file a case before the consumer forum where you will get order for full refund with interest along with damages and compensation.

Devajyoti Barman
Advocate, Kolkata
23662 Answers
538 Consultations

The builder cannot charge 10% of consideration amount for verification of documents,

The charges ranging upto one percent also have drawn strictures from consumer courts.

This very well can be taken up through consumer forum or you can file a money recovery suit through a civil court also if the builder is not responding or not complying with the demands made in the legal demand notice.

T Kalaiselvan
Advocate, Vellore
90210 Answers
2506 Consultations

does land purchase from a well known builder as part of a large project come under consumer court. We buy from a builder rather than an individual because there is some service involved in converting agriculture land to non agriculture , they will logically verify all papers of land from the farmers they purchase and then get clearance from panchayat or town planning for project clearance to build a house. They do provide a service.

Your concern is about the purchase of plotted property.

You do not have to go deep into the NA conversion formalities, it is for the seller to complete all the formalities before selling the property to you.

After all you are going to buy either the plot or a completed flat.

Since the plot was available for sale, you, having got an interest to it, bought it as per the terms of sale by paying the consideration amount.

If you are aggrieved by the post sale service of the seller (be it a builder or anyone), you as a consumer have all rights to approach consumer forum to get your grievances redressed as per consumer protection law.

T Kalaiselvan
Advocate, Vellore
90210 Answers
2506 Consultations

Hello,

Yes this does comes under consumer protection act, and you will be treated as a consumer for the said purpose.

You may send a legal notice to the builder at this stage.

regards

Anilesh Tewari
Advocate, New Delhi
18103 Answers
377 Consultations

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