Hi, you have to issue legal notice demand the builder to refund of the entire amount and if he failed to refund the amount then you have to file a complaint in the Consumer Forum for deficiency of service for Not refunding the booking amount.
Flat allotment - forfeiture
I have applied for a flat with a builder in Bangalore and paid Rs.200000 along with application. Two weeks after the allotment, I decided to backout due to personal reasons. We did not enter into any form of Sale deed. The builder forfeited the whole amount siting RERA allows him to forfeit the booking amount. The proforma allotment form uploaded by this builder in karnataka RERA website mentioned: "In the event of the Promoter, rejecting the application or not accepting this offer or the Applicant/s failing to come forward to execute the agreement for sale within the time frame provided in clause 4 above, the Promoter will refund the earnest amount deposit within 15 days of rejection or failure of the Applicant/s failing to execute the agreement for sale in terms of clause 4. All the refund shall be without any interest." What is the next steps I can take in getting my application amount back.
Asked 6 years ago in Property Law
Religion: Hindu
19 Answers
File complaint against builder before consumer forum seek refund of money paid by you as per clauses in allotment letter
2) also seek litigation costs and compensation for mental torture undergone by you
As per mentioned in your query, you have every right to get back amount which was paid by you, without interest after deducting the nominal amount for default of non execute sale agreement. All the best.
Hello,
File a complaint before RERA in order to get the refund of the deposit made by you. The money can not be forfeited by them in such unlawful manner.
Regards
A homebuyer may withdraw from a purchase agreement for varied reasons. While some of them can be attributed to the default committed by a promoter, the other likely reasons for such a withdrawal could be due to dismal market situations, personal or financial emergencies or other reasons.
So, you can file a complaint under RERA seeking refund for the amount paid by you till date minus some nominal cancellation charges as per RERA rules.
1. Is the cancellation clause mentioned on the booking form does contain any word on forfeiture of booking amount?.
2. The earnest money can not be completely forfeit, In your case.
3. You should get your booking amount back from builder in maximum 45 days after cancellation ( refer. booking form for more details ).
4. The builder registration details with RERA has to be referred, whether they are permitted for complete forfeiture of booking money according to the project.
5. You may issue legal notice to builder for the refund in stipulated time. Based on the reply, you can decide next course of action.
6. By parallel, you can also file complaint with RERA against the builder.
7. Discuss with me for further details.
1. Well, the RERA is not actually clear on this issue and the clause uploaded in the website is not your favour either.
2. So best thin to do is to send them a legal notice seeking refund of the money.
3. if it refuses to refund then lodge complaint with the RERA Tribunal. There your dispute would be adjudicated so refund is made.
Firstly, as per above clause you should get your amount for sure.
Secondly, but I may not be surprised if there is any other document entered between you and the builder which may talk about non refundable of the amount.
Thirdly, if it is there then he can take some part of the amount though whatever been there in RERA clauses, but he can’t hold the whole amount from you.
Dear Sir,
It appears you have not executed any sale agreement then as per the above clauses you are entitled for refund of Rs.2,00,000/- . You have get issue legal notice immediately and call back the amount.
1. if earnest money can be refunded as per allotment letter then you can apply to RERA and seek your refund
Dear Sir,
If you have not executed sale agreement then you are entitled. Please the documents. Please visit the following website of RERA.
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RERA is very clear about the refund.
The builder cannot refuse the refund quoting RERA regulations because he is trying to fool you.
You may issue a registered legal demand notice seeking full refund stating that there was no agreement entered hence you are eligible for full refund.
Send a legal notice to builder seeking refund of not refunded file Complaint at rera
Dear Sir, The allotment proforma uploaded by this builder on Karnataka website mentions "the Promoter will refund the earnest amount deposit within 15 days of rejection or failure of the Applicant/s failing to execute the agreement for sale" But, the allotment request form that I signed has a clause that "A flat allotment once done can not be cancelled" Does this mean a cancellation would lead to forfeiture of earnest money deposit? Is it legal by RERA to have a different application form from what is uploaded to RERA website. I had another discussion with the builder regarding the refund. He says they have already shown the forfeited amount as income in their accounts and paid GST to the IT department. Is it true that once the forfeiture is taken onto their accounts, refund cannot be done? Appreciate your responses in guiding me in the right direction.
Asked 6 years ago
Builder cannot have separate form that on RERA website
2) builder can refund your money if he so desires
1. RERA not bound by the rules created by the builder.
2. The clause did not mean anything about forfeiture, if allotment cancelled by you.
3. I suggest you to share me the relevant documents to investigate on the issue.
builder will be bound by what he has uploaded on RERA website
there is no GST payable on forfeited amount since builder has neither provided any service or supplied any goods to the purchaser, as the deal itself is cancelled
whether or not the builder has declared the forfeited amount as income in his returns, is fully inconsequential
This is my response to you:
1. It is difficult to obtain the refund amount;
2. You can still file complaint against RERA, that the builder made false promises that is why you had to seek refund;
3. Also state that the builder was taking time to complete his work on time and has a misleading advertisement;
4. There is no other way to get your token money if you have agreed to the terms of the allotment letter;
5. You will have to try other tricks to retrieve your money;
6. The builder shall not accept more than 10% of the money as advance or token money if he has then it is wrong;
7. If he has taken more than that then you can file complaint to RERA;
8. Whatever the builder might put on the website, RERA overpowers that.
The arbitral conditions made by the builder has no legal validity.
The builder cannot forfeit the entire deposit or booking amount.
He can be dragged before RERA or the consumer forum if he does any mischief in this manner.
The builder cannot forfeit the amount on his own conditions which has no legal recognition.
Once dragged before the consumer forum and quizzed properly he may agree to refund after certain deductions towards the administrative costs.
He will refund you the money. He can get the refund of gst or adjustment of the same in govt records