• Refund money from builder as per RERA act

We had booked flat in mira road thane,maharashtra.
We paid initial booking amount of rs 81000 and also paid total of rs. 6 lacs against two demand letter. But as per documents we signed registration was supposed to done within 21 days of booking the flat.
We continously followed up with builder for registration for two month but builder did not reverted. Later on due to personal reason we decided to cancel this booking and sought builder to refund our total amount. But builder has commuicated to refund only 50% of amount paid.

Kindly suggest can i go to RERA for my refund or what RERA act say as per my situation mentioned above.

Thanking you.

Kumar Gaurav
Asked 4 years ago in Property Law
Religion: Hindu

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9 Answers

What are terms of your agreement regarding refund ?

2) if builder failed to register agreement within period of 21 days you should have issued legalnotice to builder to register agreement in your favour

3) if he fails to do so inspite of repeated reminders you can cancel the contract and seek refund

4) per The Real Estate (Regulation and Development) Act, 2016, which came into force on May 1, 2017, The allottee have the right to cancel/withdraw his allotment in the project . Provided that where the allottee proposes to cancel/withdraw from the project without any fault of the promoter, the promoter herein is entitled to forfeit 10% of booking amount for the allotment. The balance amount of money paid by the allottee shall be returned by the promoter to the allottee within 45 days of such cancellation

Ajay Sethi
Advocate, Mumbai
87895 Answers
6207 Consultations

5.0 on 5.0

You can definitely approach RERA seeking complete refund, along with interest as the Builder has failed to fulfill his obligations to the contract because he had failed to do the registration within 21 days of booking the flat.

You have a good prima facie case against the builder and you should not accept half of the amount, in my opinion.


Siddharth Jain
Advocate, New Delhi
5925 Answers
101 Consultations

5.0 on 5.0

1. Refund will be as per the terms contained in your allotment letter or booking form

2. Do you have them?

3. Deducting 50% which comes to nearly 3.5 lacs is quite unreasonable

4. So if you dont have an allotment letter or booking form, then builder cannot decide any exorbitant percent for deducting from your money when you cancel the flat booking

5. You can approach Rera

Yusuf Rampurawala
Advocate, Mumbai
6876 Answers
79 Consultations

5.0 on 5.0

RERA says 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.

It also states that if a promoter fails to complete a project within the stipulated time or is unable to provide possession of the real estate property due to any reason whatsoever, the promoter must refund to the homebuyer, any amount received for the property. In addition to refund of the amount paid, the promoter is also required to pay an interest at the prescribed rate in this behalf including compensation.

Siddharth Jain
Advocate, New Delhi
5925 Answers
101 Consultations

5.0 on 5.0

1. The builder can not deduct half of the price towards cancellation of booking.

2. So the act of the builder is not permissible and can be remedied under RERA.

3. So to get back your legitimate dues you can lodge complaint with the RERA Tribunal wherein your grievances would be aptly redressed.

Devajyoti Barman
Advocate, Kolkata
22515 Answers
402 Consultations

5.0 on 5.0

This is my response to you:

1. Is the project registered under RERA?

2. Even under RERA the builder can only forfeit 20% of the amount paid but in your case you can reclaim the whole amount since it is not your fault;

3. As per section 12 only 10% advance money may be taken by the builder;

4. Also as per section 18 of the Act you can reclaim refund:

18. (1) If the promoter fails to complete or is unable to give possession of an apartment, plot or building,—

(a) in accordance with the terms of the agreement for sale or, as the case may be, duly completed by the date specified therein; or

(b) due to discontinuance of his business as a developer on account of suspension or revocation of the registration under this Act or for any other reason, he shall be liable on demand to the allottees, in case the allottee wishes to withdraw from the project, without prejudice to any other remedy available, to return the amount received by him in respect of that apartment, plot, building, as the case may be, with interest at such rate as may be prescribed in this behalf including compensation in the manner as provided under this Act:

Provided that where an allottee does not intend to withdraw from the project, he shall be paid, by the promoter, interest for every month of delay, till the handing over of the possession, at such rate as may be prescribed;

5. Therefore you have whole of the merit on your case;

6. You can engage services of a lawyer and file a RERA complaint.

Gowaal Padavi
Advocate, Mumbai
1920 Answers
5 Consultations

5.0 on 5.0

1. Since the builder has violated the terms mentioned in the agreement for sale or other document, you have the right to seek relief by filing a complaint case before the RERA.

2. File the complaint case before the RERA praying for a direction upon the builder for refunding the amount paid by you with interest, compensation and cost.

Krishna Kishore Ganguly
Advocate, Kolkata
26602 Answers
726 Consultations

5.0 on 5.0

Dear Client,

Don`t show your willingness to cancel the booking for any reason.

Complain to RERA for his default to get the registration in given time and sought refund.

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

The builder's reply to refund only 50% is unjustified.

He cannot deduct 50% of the booking amount.

You have options to either approach RERA or the consumer forum

Before that you communicate your decision to cancel the booking by a letter sent by registered post and demand the booking amount, let him give a reply, you can initiate proper action as per prevailing circumstances after that.

T Kalaiselvan
Advocate, Vellore
78050 Answers
1543 Consultations

5.0 on 5.0

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