• Regarding refund amount from builder

Hi,
 I booked flat in Bangalore from reputed builder on March 25th 2018 I paid one lakh rupees as advance.
 Builder gave as time of 45 days to pay remaining booking amount meanwhile i heard so many issue in the project and also not able to arrange fund so, i cancel the flat builder saying i will only get 50000 rupees that to after 60 days.As we are not entering into any legal agreement till now. How can he deduct 50% of amount.Is there any way to get money back. 
 I got to know that one of owner cancelled at the same stage they charged 15% and refunded remaining amount.
Asked 4 years ago in Property Law
Religion: Hindu

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17 Answers

Sor first of all the condition in allotment letter is to be seen ??

If seller is unnecessarily deducting amount and there is problem in project if the project is rera approved file a complaint with the rera authority .

Alternatively you have a remedy with the consumer court.

Serve builder a legal notice for refund for defects and cancellation and seek refund if builder denies file a consumer complaint in district consumer forum.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

Issue legal notice to builder to refund your money with interest

2) if builder fails to refund then file complaint before consumer forum and seek refund of money paid by you with interest

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

4) builder cannot deduct 50 per cent of money paid by you towards cancellation charges

Ajay Sethi
Advocate, Mumbai
87917 Answers
6207 Consultations

5.0 on 5.0

1. The builder can not forfeit such a huge part of money if the agreement or booking is cancelled.

2. the builder though can deduct a nominal amount towards processing charge but not better part of the advance money.

3. So send the builder a legal notice and still he refuses to refund the money then you can file case before the consumer forum wherein you will get full refund along with damages and compensation.

Devajyoti Barman
Advocate, Kolkata
22515 Answers
402 Consultations

5.0 on 5.0

1. Has the builder given you any allotment letter?

2. Many times when the buyer cancels the booking, the builder forfeits the booking amount.

3. Some builder deduct some % from booking amount and then refund balance.

4. This is justified by the builder on the basis that due to your booking and subsequent cancellation, the builder lost a prospective buyer who would be willing to give a better rate or had finances in place implying that his payment would be made promptly.

5. You will have to negotiate with the builder giving him example of another buyer for whom he deducted only 15%. But builder generally would not respond to your written communication or oral requests.

6. So I suggest first try speaking to the builder and see if he is agreeable to reduce the penalty, if not then issue him a legal notice stating the flaws in the project and mark that notice to the RERA authority.

Yusuf Rampurawala
Advocate, Mumbai
6880 Answers
79 Consultations

5.0 on 5.0

1) You make complaint in the consumer forum of your city area office and RERA office for this instance that without signing any legal sale deed agreement builder is deducting 50% amount.

Ganesh Kadam
Advocate, Pune
12335 Answers
191 Consultations

4.9 on 5.0

Do you have a receipt for the amount paid to the builder?

If yes, you may first communicate your decision to cancel the booking in a letter sent by registered post and demand him to refund the full amount for the reasons that you may rely upon.

Since there is not agreement entered between you both, he is bound to refund the same by deducting the statutory deductions.

Failing to respond properly you may drg him to consumer forum opr civil court for recovery.

T Kalaiselvan
Advocate, Vellore
78073 Answers
1543 Consultations

5.0 on 5.0

Dear Sir

Please nice and back. If you have receipt or it was through bank then can get issue a legal notice and get entire amount back with interest

Kishan Dutt Kalaskar
Advocate, Bangalore
6050 Answers
381 Consultations

4.8 on 5.0

If you have not received the refund, then you can do the following:

1. You should collect the papers evidences relevant to your case;

2. You should collect evidences of advance payment made by you, including the agreement copy, make sure it is signed by both the parties, the banking transaction showing that you paid the advance amount for the booking;

3. You should write a personal letter to the the builder asking him to refund your amount, otherwise you could take legal steps;

4. If they still don’t respond, then issue a legal notice through a lawyer to them stating that you have been

wrongfully been cheated by the builder;

5. You can also file a complaint before the RERA authority if the project is RERA registered;

6. Then last stage you can file a case in court whether a suit or consumer forum or an FIR in police station.

Gowaal Padavi
Advocate, Mumbai
1920 Answers
5 Consultations

5.0 on 5.0

Hello,

If they are deducting such a huge amount then send a legal notice to them to claim compensation and thereafter also they do not respond then file a case in the consumer forum or before RERA.

Regards

Anilesh Tewari
Advocate, New Delhi
17940 Answers
377 Consultations

5.0 on 5.0

Hello sir, it is advisable to file a complaint before RERA bench and seek for refund,, However , it is better if you deal with builder and arrive at a settlement mutually to avoid legal expenses as the amount is less and legal procedure ,may take longer period of time

Hemant Chaudhary
Advocate, Gurgaon
4619 Answers
67 Consultations

4.9 on 5.0

The builder can only deduct the booking amount under tera on cancellation and has to pay the balance amount in 45 days so in your allotment how.much booking amount the whole amount cannot be said as booking amount.

But the builder without agreement cannot take any advance so in your case there is no agreement so builder is liable to refund the complete amount. Complaint to tera authority and demand refund of the amount.

Refer the section 13 under RERA so since there is no agreement no amount can be forfited.

13. (1) A promoter shall not accept a sum more than ten per cent of the cost of the

apartment, plot, or building as the case may be, as an advance payment or an application fee,

from a person without first entering into a written agreement for sale with such person and

register the said agreement for sale, under any law for the time being in force.

(2) The agreement for sale referred to in sub-section (1) shall be in such form as may be

prescribed and shall specify the particulars of development of the project including the

construction of building and apartments, along with specifications and internal development

works and external development works, the dates and the manner by which payments towards

the cost of the apartment, plot or building, as the case may be, are to be made by the allottees

and the date on which the possession of the apartment, plot or building is to be handed over,

the rates of interest payable by the promoter to the allottee and the allottee to the promoter

in case of default, and such other particulars, as may be prescribed.

Further if there project is no.under RERA you can approach the consumer court under deficiency.of services and demand refund of amount along with litigation fee.

First of all issue a legal notice.to refund complete amount in 15 days as there is no.agreement if builder denies or doesnot return amount file a complaint and take legal course.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

If you have been intimated about the sale agreement and instructed to collect the same, then it is your fault that you did not collect the same that too when you had 30 days time to collect it even though you may be having various reasons for not doing so.

Have you at least informed the builder about your inability to execute the sale agreement and requested for extension of time for the same?

When you are at fault or the lapse is in your side, you may ot have ground for your claim.

As per RERA if you are cancelling the booking on your own, a percentage of amount can be deducted

The builder's GST deduction twice is unjustified.

You may issue a legal notice to the builder intimating th cancellation of booking and demand full refund of booking citing the reasons you rely upon.

Let the builder give a reply refusing to return the full amount, you can plan to drag him to consumer court after that if his refusal is illegal.

T Kalaiselvan
Advocate, Vellore
78073 Answers
1543 Consultations

5.0 on 5.0

1) it is mandatory for you to sign the sale agreement

2) you would not get full refund as in spite of reminders you did not collect sales agreement

3)if you cancel flat before sale agreement then refund application would be governed by allottment letter

Ajay Sethi
Advocate, Mumbai
87917 Answers
6207 Consultations

5.0 on 5.0

Dear Sir,

Your decision is correct. There is no provision in RERA about forfeiture clause on cancellation of contract. It will goes with agreement terms entered between the parties.

Kishan Dutt Kalaskar
Advocate, Bangalore
6050 Answers
381 Consultations

4.8 on 5.0

1. The above condition in not applicable on you.

2. You may refer to section 12 and 13 of the Act, which will be of help to you.

3. First step is to send a legal notice to the promoter.

Find the RERA act here: http://www.up-rera.in/pdf/reraact.pdf

regards

Anilesh Tewari
Advocate, New Delhi
17940 Answers
377 Consultations

5.0 on 5.0

1. the builder has already mailed you the sale agreement. that is as good as receiving the sale agreement

2. now you are liable to execute the agreement within 30 days of receipt of the mail containing the agreement, as per the T&C given in your payment receipt

3. the condition is self explanatory. if you fail to execute the agreement within the stipulated period, your booking will be deemed to be cancelled on expiry of 30 days and the builder will refund you your booking amount after deducting the 50,000 plus GST

4. this you have already agreed by signing the payment receipt

5. so i dont see any way out how you can contest this

6. RERA does not have any provision about refund of booking money before signing of agreement

7. even if you had entered into a RERA agreement and after that wishes to withdraw from the project, the case would be governed by what would be agreed in your agreement ie. builder would be entitled to deduct the agreed liquidated damages from the booking amount

8. i suggest you issue a legal notice stating that the money sought to be deducted by the builder is way too high and arbitrary, onerous and one sided and unilateral

9.see what response you get. in case of no reply or negative reply, just file an online RERA complaint and try your luck there. May be RERA tribunal may rule in your favour by reducing the penalty on cancellation of booking by buyer

Yusuf Rampurawala
Advocate, Mumbai
6880 Answers
79 Consultations

5.0 on 5.0

You can send him a legal notice and file a consumer complaint before forum. This is clear defiency of service.

Prashant Nayak
Advocate, Mumbai
27247 Answers
88 Consultations

4.4 on 5.0

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