• Need advice on cancellation and refund of flat booking.


I had booked a flat in Oct 2015. The sale agreement said possession would be within 3 yrs 6 months from the date of commencement (Nov 2014). In May 2018 that period has ended and there has not been much progress from the builder. The builder tells me that there have been delays because of demonetization and RERA approval. The RERA approval for the building is not yet completed and I expect it to be approved This month (June 2018). But, in the RERA application the builder has given possession time of March 2020.
I am fed up with this delay and want to cancel my booking. Please advice me on how to move forward.
I have taken a home loan and I want my complete money refunded including the interest I have been paying for the home loan.
Appreciate your help.

Asked 4 years ago in Property Law
Religion: Hindu

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19 Answers

Sir since the builder has delayed and breached in agreement this amount to deficiency in service so for that you can issue a legal notice to builder asking to refund complete amount with the interest as he has breached the agreement and further there shall be delay as project is not likely to complete before 2020.

Further the RERA and demonetisation cannot be held reason of delay as held by national and state consumer forum in many order.

If on the legal notice the builder does not refund the amount with interest file a Consumer complaint before the appropriate jurisdiction demanding refund along with interest compensation and the litigation fee.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

since builder has failed to deliver possession within stipulated period mentioned in contract ie May 2018 you can cancel your booking and seek refund of money paid by you to builder with interest

2) if builder fails to refund file complaint before RERA and seek refund of your money

Ajay Sethi
Advocate, Mumbai
87911 Answers
6207 Consultations

5.0 on 5.0

1. file a rera complaint online

2. seek refund of entire with interest and compensation

3. say that you do not wish to continue in the project

4. that there is delay in handover of possession

5. you will get your full refund with interest + compensation + stamp duty and registration fee paid + bank loan processing charges paid by you + interest component of EMI. Claim refund of each and every amount that you have spent till now

Yusuf Rampurawala
Advocate, Mumbai
6880 Answers
79 Consultations

5.0 on 5.0

1. As per limitation Act, you have time to sue builder.

2. It is the act of cheating and Criminal breach of trust by the builder. So, I suggest you to file criminal complaint against the builder.

3. You may also issue legal notice for the refund.

4. If you do not get reply for your legal notice within stipulated time then you need to file a case against the builder in consumer forum for the recovery.

5. You can also claim Damages, Advocate fee, Case filing charges .. any charges that you incur during the trail.

Advocate, Bangalore
844 Answers
9 Consultations

4.9 on 5.0

Firstly send a legal notice seeking for refund of entire amount paid by you along with interest and state that Since they have not fulfilled their part of contract on time you are cancelling the agreement. If they fail to refund you file a suit for recovery of money in jurisdiction court and also consumer complaint under section 12 of consumer protection act for deficiency in service and seek for damages.

Swarnarka Chowdhury
Advocate, Mysore
1878 Answers
5 Consultations

5.0 on 5.0

Builder ought to have adhered with the timeline, that he had agreed to in terms of the agreement sign by you.

You are eligible to seek full refund of your deposit along with interest.

Approach RERA/Consumer Forum, as the case may be.

Feel free to reach out for any further assistance.

Vibhanshu Srivastava
Advocate, New Delhi
9426 Answers
245 Consultations

5.0 on 5.0

1) Do not cancel the flat, instead try to take possession ASAP as you have invested money and time in it.

See RERA rule below

The Real Estate (Regulation & Development) Act, 2016, which came into force on 1st May 2017, with the implementation of Sections 3-19, 40, 59-70, 79 and 80. The Ministry of Housing & Urban Poverty Alleviation had worked out and circulated Model Real Estate Regulations for accepting by the Regulatory Authorities in the States/UTs.

It regulates transaction between buyers and builders of a residential project, through the establishment of a state-level regulatory authority known as Real Estate Regulatory Authorities.

It explains that buyers can cancel allotment of the booked flat with a builder at any stage even if the builder is not guilty. At the same time, the builder is also limited by law to return the money collected from buyers within 45 days, after forfeiting the 10% of booking amount.

Ganesh Kadam
Advocate, Pune
12335 Answers
191 Consultations

4.9 on 5.0

Dear Client,

File Consumer complain for refund and compensation.

No such excuse work in court that due to demonetization and RERA approval, project could be done on time. And, RERA approval is no big deal, even online registration is provided for under construction projects,

It`s only builder who applied after much delay.

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

It is clear cut case of fraud.

Junaid Ali Khan
Advocate, New Delhi
173 Answers
1 Consultation

4.7 on 5.0

This is my response to you:

1. Send a formal letter to the builder for refund;

2. Make sure you read the allotment letter wherein it may be written the amount the builder will actually refund while retain a part of it;

3. If it is not written well and good, you should get full refund;

4. Sometimes the builder does not refund a huge chunk of the refund and that itself is a big problem;

5. If you face more difficulties then file complain in RERA;

6. Ask for compensation for the mental agony and torture suffered by you.

Gowaal Padavi
Advocate, Mumbai
1920 Answers
5 Consultations

5.0 on 5.0

Lodge an FIR stating the same facts or move an application u/s 156(3) before the MM.

Junaid Ali Khan
Advocate, New Delhi
173 Answers
1 Consultation

4.7 on 5.0

In this case, you should serve a legal notice to the builder asking him to deliver possession within 15 days of the receipt of notice as per the builder buyer agreement. Also ask him to compensate you for delay @ Rs. 2,000/- per day.

Also, mention in the said notice that the said agreement would be deemed to be cancelled, if the builder doesn't adhere within 15 days and he is liable for refund as well as damages and interest.

Siddharth Jain
Advocate, New Delhi
5928 Answers
101 Consultations

5.0 on 5.0

If he fails to refund your money even after receiving the legal notice, you can file a complaint against the builder in Consumer court for deficiency of services and unfair trade practices adopted by the builder seeking refund alongwith damages, interest and litigation expenses.


Siddharth Jain
Advocate, New Delhi
5928 Answers
101 Consultations

5.0 on 5.0

Dear Sir,

You can get issue a legal notice and get refund the amount. If he did not obliges there so many alternatives which cannot be disclosed on this platform.



All sections of the RERA Act came into force with effect from May 1, 2017. Under the RERA Act, the Karnataka Real Estate Regulation and Development Rules, 2017 was approved by Government of Karnataka and notified on July 10, 2017.


Kishan Dutt Kalaskar
Advocate, Bangalore
6050 Answers
381 Consultations

4.8 on 5.0

Mr Vivek you can start the process by writing a mail to the builder asking for a cancellation of your booking and complete refund of your monies along with interest. If the builder fails to respond or comply with your demands, get a legal notice issued and file the complaint either under the RERA Act or under the Consumer Protection Act. You will get the complete refund, together with compensation and litigation cost as well.

Kiran N. Murthy
Advocate, Bangalore
1298 Answers
194 Consultations

5.0 on 5.0

Firslty, yes sir, you would surely get your money back with interest.

Secondly, first give a legal notice to he builder then wait for 15 days.

Thirdly, then file RERA complain, and get started with the process of getting your money back plus interest till the date of the conclusion of the case before RERA.

Sanjay Baniwal
Advocate, South Delhi
5464 Answers
13 Consultations

5.0 on 5.0

1. FILE Grievance Petition before the local Consumer Court, supported with documentary evidence, photographs, and seek damages, compensation etc.... for the builders negligence and deficiency & harassments.

Keep Smiling .... Hemant Agarwal

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

5.0 on 5.0

If you are not interested in continuing the booking you may communicate your decision to the builder in writing and send the same by registered post.

You may cite that the inordinate delay from the side of the builder as the reasons for cancellation of the booking.

If there is no proper response or the builder is not willing to pay interest you may drag him to consumer forum for relief and compensation.

T Kalaiselvan
Advocate, Vellore
78070 Answers
1543 Consultations

5.0 on 5.0

You can go before rera or Consumer Court for refund. In rera you can apply for refund anytime with any reason.

Prashant Nayak
Advocate, Mumbai
27245 Answers
88 Consultations

4.4 on 5.0

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