• Application fee of Rs 1 lakh paid and wanted refund

I had applied for a flat in Bangalore and paid Rs one Lakh as application fee, after few days I decided not to proceed with the flat I booked due to various reason. the builder responds to me over phone through their dealer that the refund can not be made. I asked them to send me a copy of the documentations signed while booking the flat and there is a clause which mentions as follows. I want to know if there is a way I get a refund.

Extract from the application form which I have singed.
I confirm and undertake not to make any claim against the Developer/DM or seek cancellation of this Application Form / allotment letter/ agreement for sale or refund of the monies paid by me by reason of anything contained in other information / disclosure not forming part of this Application Form / allotment letter/agreement for sale or the RERA website.
Asked 5 years ago in Property Law
Religion: Christian

4 answers received in 30 minutes.

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13 Answers

You must have signed an agreement, while booking .If the agreement states the cancellation charges, u have not much options, try to negotiate for a lessor deduction .

Mohammed Mujeeb
Advocate, Hyderabad
19291 Answers
32 Consultations

4.7 on 5.0

Your Rs 1 lakh paid at time of booking would be forfeited by builder in the event you cancel the booking

Chances of obtaining refund are bleak

Ajay Sethi
Advocate, Mumbai
91342 Answers
6823 Consultations

5.0 on 5.0

Hi, since the refund is not on the default of the builder , therefore you are bound by the agreement .. Your complaint will not be maintanable

Hemant Chaudhary
Advocate, Gurgaon
4629 Answers
67 Consultations

4.9 on 5.0


a contract cannot override the provisions of the law and a contract which is against the law and puts undue pressure upon the person is unlawful and can be challenged.

file a complaint in the consumer forum and you would get relief.


Rahul Mishra
Advocate, Lucknow
13998 Answers
65 Consultations

5.0 on 5.0

If you have decided to not to go ahead with the booking you may communicate the information to the builder in writing sent by registered post to him and demand the refund of the booking amount after deductions of statutory expenses towards administrative cost.

If the builder is not responding or not complying with the demand made, you may drag him to consumer forum seeking relief and and also for compensation towards deficiency in service.

Let him appear before court and giver his own explanation.

The court will decide after hearing both the sides on merits and as per law on this.

T Kalaiselvan
Advocate, Vellore
81519 Answers
1836 Consultations

5.0 on 5.0

though the application has mentioned the refund can not be asked and the builder clarifying that the application fee is non refundable, Is there a law/way I can request refund of Rs 1 lakh.

Try your best including the legal action.

If it is returned at least partially you will be benefited

T Kalaiselvan
Advocate, Vellore
81519 Answers
1836 Consultations

5.0 on 5.0

1. Once you have applied and paid application fee you are governed by the terms of agreement or the terms mentioned on the receipt or brochure of builder. Normally, there is a clause in the agreement to sell, receipt or brochure of builder that application fee will not be refunded.

2. There is no law which provides for refund of application fee. The parties are governed by the contract.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

Dear Sir,

The law is very clear that the initial booking cannot be returned. But it is limited to 10% of the total cost of the Apartment. You may challenge such a limitation and seek to limit it 2% of the sale consideration amount. Get issue a legal notice and then approach RERA. Since developers are afraid of litigations as such there are chances of compromise.


Filing of Complaint

Any aggrieved person may file a complaint with the Regulatory Authority for any violation under the Act would file the complaint to the Adjudicating Officer. He would have to provide a fee of INR 1,000 in form of DD.

8. Does the term ‘allottee’ include secondary sales? Ans: As per section 2(d) an allottee includes a person who acquires the said ‘apartment / plot’ through transfer or sale, but does not include a person to whom such plot, apartment is given on rent. The Act doesn’t include rental projects, lease / leave and License deals.

17. What are the penalties that a Real Estate Agent would face if he fails to adhere to the mandates prescribed by MahaRERA?

Ans: If any real estate agent fails to register and contravenes the provisions of section 9 or section 10 of the Act, he shall be liable to a penalty of ten thousand rupees for every day during which such default continues, which may cumulatively extend up to five per cent of the cost of plot, apartment or buildings, as the case may be, of the real estate project, for which the sale or purchase has been facilitated as determined by MahaRERA.

20. In case of delay in getting possession from the promoter, will the buyer be entitled to get interest on the amount paid by him, for such delayed period?

Ans: Yes. In accordance with the model form of agreement, if the Promoter fails to abide by the time schedule for completing the project and handing over the [Apartment/Plot] to the Allottee, the Promoter agrees to pay to the Allottee, who does not intend to withdraw from the project, interest as specified in the Rule, on all the amounts paid by the Allottee, for every month of delay, till the handing over of the possession.

37. Is it compulsory for the promoter to register the project immediately after he gets sanctioned approvals?

Ans: Promoter has to register the project before he starts any form of advertising, marketing, booking, selling, offer for selling or inviting people to purchase plots, apartment or buildings.

38. Will ongoing Project have to stop sales or construction till receiving the Registration? Ans: At the end of ninety days from the date of notification of Section 3 of the Act, the promoter of an ongoing project shall not advertise, market, book, sell or offer for sale or invite persons to purchase in any manner any plot, apartment or building, unless he registers the project.

53. How will the Act, Rules and Regulations affect advertisement of projects with many phases?

Ans: A promoter would be allowed to advertise, market, book, sell or offer to sell or invite persons to purchase plot, apartment or building in a phase of a real estate project, only if the said phase is registered. A promoter cannot advertise, commit or sell amenities or facilities that are in a subsequent phase which is still not registered.

65. In case of customers default: can developer be selective in cancelling units?

Ans: Provision of termination of agreement is covered in the Model Form of Agreement attached to Maharashtra Real Estate (Regulation and Development)(Registration of Real Estate Projects, Registration of Real Estate Agents, Rates of Interest and Disclosures on Website) Rules, 2017.

Q.Does RERA apply to plotted development scheme?(without any construction of building but only sale of NA plots) What will be the "occupation/completion certificate" provision in such plotted schemes?

A.The plotting is approved by the town planning or the collector of the district as per the delegation of power given under Maharashtra Regional Town Planning Act, 1966. When a plotting is approved, certain common amenities are shown or agreed to be provided by the developer in the agreement for sale such as common road, garden, swimming pool, water connection, electric connection for common area and individual plot, gym, club faculties, compound, etc. As I understand, when you do get any such area built, you do get a completion certificate from local authority. For e.g. Gym or Club house OC. If that is not provided, internal road completion certificate or post electric supply connection, water connection is provided. Also, town planning authority gives initial approval with few conditions and then final approval of layout after the facilities are constructed. At least, the developer should complete the common facilities and individual facilities as per agreement for sale and as per the details provided at the time of registration of real estate project and submit the Architect certificate as per form 4 given in Maharashtra Real Estate Regulatory Authority (General) Regulations 2017. In this certificate of architect, the completion of facilities provided by respective authorities are be incorporated and certificate is to be issued. This has to be submitted to town planning authority and then uploaded to RERA website for project completion.

A case in point is Noida Extension. Many homebuyers there had booked apartments after paying 10% booking amount when property prices were affordable. Much to their dismay, when construction restarted after a gap of some months after resolution of the land acquisition problem, their bookings were cancelled by the developers on one pretext of the other. The latter were hoping to sell the projects at higher prices and cancel the initial bookings, and the buyers could not take any action as they had not registered the sale agreement.]

“Hundreds of cases of disputes between homebuyers and builders have arisen due to lack of clarity of terms and conditions at the time of paying booking amount. If homebuyers will be aware of each and every detail of the project and know how and when they have to pay their installments, there won’t be any dispute later,” says Garg.

“The allottee shall have the right to cancel/withdraw his allotment in the project as provided in the Act: 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 the booking amount paid 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,” says the

Kishan Dutt Kalaskar
Advocate, Bangalore
6128 Answers
436 Consultations

4.8 on 5.0

As per the application form yes Delhi fund is not allowed but you have the option to find your case in consumer forum not in rera you get your refund on the basis of others regions relating to the project and the Builder that you cancel booking due to those regions and asking for the refund of the application amount along with the interest and legal charges you can also claim some compensation under nalhati builder to refund the amount

Vimlesh Prasad Mishra
Advocate, Lucknow
6849 Answers
23 Consultations

4.9 on 5.0

1. Apply through RTI to get all the copies pertaining to your flat registration. Builder can not ignore your RTI application and they need to respond at the max of 30 days.

2. I suggest you to issue legal notice builder for the refund of the money without even obtaining the flat registration document.

Advocate, Bangalore
844 Answers
9 Consultations

4.9 on 5.0

No you can not ask for the refund as you are making the cancellation out of your own will and you have agreed to the conditions mentioned thereupon.


Anilesh Tewari
Advocate, New Delhi
18043 Answers
377 Consultations

5.0 on 5.0

Section 19(4) of RERA reads as follow:

4) The allottee shall be entitled to claim the refund of amount paid along with interest

at such rate as may be prescribed and compensation in the manner as provided under this

Act, from the promoter, if the promoter fails to comply or is unable to give possession of the

apartment, plot or building, as the case may be, in accordance with the terms of agreement for

sale or due to discontinuance of his business as a developer on account of suspension or

revocation of his registration under the provisions of this Act or the rules or regulations

made thereunder.

and apart from this you are not eligible to ask for refund in case you yourself get your unit cancelled.


Anilesh Tewari
Advocate, New Delhi
18043 Answers
377 Consultations

5.0 on 5.0

Yes! There is a way to claim the application money. You may Send a legal notice and claim the money and damage through consumer court.

Sudhindra Bhat
Advocate, Bangalore
51 Answers

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