• Cancellation of booking and refund of token amount

Dear Sir/Madam
I have paid token amount of 1 lakh for booking of flat in a residential township project in Godrej Garden City Ahmedabad.( My building is RERA Approved.)
Following are my concerns:-
1. On scrutiny of draft agreement it is observed that block/survey details of building ( in which my flat is alloted) are not provided. Instead they have given final plot no where my building is constructed as per their Revised Master Plan approved by Town planner, Ahmedabad.
On asking details, they have given Block No. on their company letterhead but neither they want to amend the agreement ( by mentioning block no.) nor they are ready to add as a supplement/ Annexure. 
2. They have taken 1 lakh rupees for open car parking charges and mentioned the same by mail in their cost estimate. On asking for cancellation of the same, they are not agreeing to it.
3. Few documents like power of attorney/Board of resolution for ascertaining authorised signatory ( which is required for approval of loan from my company) are also not provided . On questioning they are asking me to submit it on letterhead of panel advocate/ legal department of the organization.
I am already in discussion with them for last thirty days but couldn't resolve the above issues. 
They have clearly stated that entire amount paid shall be forfeited in case unit is cancelled.
Now I can't bear this unprofessionalism further and would like to cancel the booking. 
My question is Can I approach RERA and get my refund? If I lose my case will I be liable for any penalty from builder side.
I would like to mention that at time of submitting token amount I have signed an Application form wherein one condition is that entire amount paid shall be forfeited if allottee back out which is not attributed to builder's default.
Kindly guide.
Asked 4 years ago in Property Law
Religion: Hindu

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9 Answers

1. Block details of building on builder’s company letterhead is fine

2.open car park cannot be sold. You can claim refund of money paid

3. At the time of registration of sale agreement, the builder will have to attach power of attorney or board resolution to show authorised signatory. So builder should not have any problem in sharing the document with you

4. You can approach Rera. Main point will be illegally charging you for open car park. You can also raise points of not annexing block details to sale agreement and not providing power of attorney required for loan sanction

5. If you cancel booking then you will be liable for liquidated damages as agreed in your allotment letter

6. But since you wish to cancel booking, you can approach Rera. This will put pressure on builder. You will get refund for money paid for open car park. But other amount will be refunded to you as agreed in allotment letter in the event the booking is cancelled by you

Yusuf Rampurawala
Advocate, Mumbai
6880 Answers
79 Consultations

5.0 on 5.0

Yes you can approach rera or Consumer court for seeking refund.

Prashant Nayak
Advocate, Mumbai
27247 Answers
88 Consultations

4.4 on 5.0

1. The builder must have signed redevelopment agreement with owner of plot which will be uploaded on Rera website. Check signature in that agreement. If it matches with signature on the letter given to you, then letter is fine even without stamp

2. That means you have not separately paid for open car park. So you cant complain against builder on that ground

3. What is the harm for the lawyer to simply give a list of required documents on the letterhead? I dont see any harm.

4.if your complaint is found frivolous by rera then it may dismiss it and may impose cost on you. So complain only if you have proper grounds against builder that he has violated provisions of rera and its rules

Yusuf Rampurawala
Advocate, Mumbai
6880 Answers
79 Consultations

5.0 on 5.0

1) dont cancel the booking

2) if you do so your earnest money paid would be forfeited

3) Godrej is a reputed real estate company and they would complete construction of project within stipulated time

40 if you go to RERA after cancellation of booking and seek refund you would not be granted refund

Ajay Sethi
Advocate, Mumbai
87917 Answers
6207 Consultations

5.0 on 5.0

you should continue with your booking

2) ask builder to sign document giving details of your block

3)for deficient document ask your lawyer to request for said documents on his letter head

Ajay Sethi
Advocate, Mumbai
87917 Answers
6207 Consultations

5.0 on 5.0

This is my response to you:

1. As per the provisions of RERA as there has been deficiency of service;

2. The block number should be mentioned in the agreement, what if there is a conflict with someone else's land or a government land then the whole project could be stayed;

3. They cannot take one lakh token amount for car, because car parking cannot be sold;

4. The fact that the car parking has been mentioned in sale deed, is itself wrong;

5. You can easily seek compensation for cheating you in the RERA office;

6. Please refer to this manual: https://gujrera.gujarat.gov.in/resources/staticpage/GRERA_User_Manual.pdf .

Gowaal Padavi
Advocate, Mumbai
1920 Answers
5 Consultations

5.0 on 5.0

My question is Can I approach RERA and get my refund? If I lose my case will I be liable for any penalty from builder side.

You first communicate your decision to cancel the booking for the reasons that caused the concern abut the transparency as well continuance of the purchase.

You can even send a legal notice in this regard mention all the drawbacks and the irregularities observed on their side while demanding to cancel the booking and refund of booking amount with interest from the date of payment since it is their fault for not abiding by the conditions or not maintaining the transperancy.

If you dont get any response for this legal notice, you may approach RERA for relief, if yo0u dont get any proper relief from them also then you may approach consumer court to get your grievances redressed.

I would like to mention that at time of submitting token amount I have signed an Application form wherein one condition is that entire amount paid shall be forfeited if allottee back out which is not attributed to builder's default

This is an arbitral condition and illegal in the eyes of law.

They cannot work under such blanket condition, they have to honor the law of the land and cannot form their own rule or law which would favor all their atrocious or unjustified activities.

T Kalaiselvan
Advocate, Vellore
78070 Answers
1543 Consultations

5.0 on 5.0

1. That may not stand as authentic commitment from the builder side, he will claim excuse stating that it is am mischief of any staff who has left his organisation hence he cannot undertake the responsibility and moreover this is not a registered agreement that can be enforced through law.

2. The sale of car parking is illegal, hence you can verywell object to it.

3. While sending a legal notice you can condemn their illegal demands about involving a lawyer for each and every routine and petty issues.

4. RERA is not the final authority, you can approach consumer court after not getting proper response from RERA also.

T Kalaiselvan
Advocate, Vellore
78070 Answers
1543 Consultations

5.0 on 5.0

1. Builder has given me block details on company letterhead, however name and stamp/seal below signature is missing. -- complete details would be provided in sale agreement if no than complain to RERA, and u can also ask any details, builder bound to provide information, if no, than RERA.

2. I have not paid money for open allotted car parking as on date but they have considered the amount of open alloted car parking in sale consideration and they are not deducting the same in sales consideration. Should I approach RERA? --- Yes if parking not allotted.

3. Regarding any deficient documents builder is asking on letter head of empanelled lawyer of organization. As Lawyer is empanelled she doesn't feel the need to do so. What should I do to get requisite documents? -- What ?

4. Lastly, I am bit concerned that Will be financial implications if I lose in RERA? Will I be liable for any penalty? Shall I go to RERA or forget about the refund? --- RERA and consumer court, No penalty.

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

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