I have booked a 3BHK apartment with a renowned builder. The project location is in Yelahanka, Bangalore. An initial booking amount of 30000 paid in the month of October-2017. It was in pre-launch stage at the time of booking. Builder didnt provide any detail other than site location and approximate SBA of each flat. He promised the launching will be in the month of December-2017. Again in December they have collected 5 lacs as the blocking amount to ensure the allocation of flat. Then in the month of February-2018 they have collected 5 more lacs by allocating flat number and given an allotment form. So, total 10.3 lacs was paid. The reason for paying the huge amount before launching was an attractive price. Till now the builder not launched the project and he is saying that the RERA formalities are not completed. Now I am worried as a huge amount is lying with him, without knowing the launch date. He will give back my money if I want to cancel, since the location is very good he can easily sell it to other party. But I wanted to keep only around 1 lac with him as an advance and take back remaining amount. If he denies to refund the amount, what options I have legally to take action on the builder? Is it a right practice to collect that much amount without RERA approval?
1) You can ask him when the project is going to start as you said you don't want lose the flat, which is in good location.
2) You can cross check with RERA under RTI that this builder has applied for RERA number and what is missing from builder side, than take further decision.
See builder cannot collect so.much amount without prior approval and agreement to sale. Since the builder has not registered with RERA and the project has not commenced till date there can be fraud involved so you can legally ask your amount back along with the interest as the project is not still started and builder has delayed.
Further you cannot do legally anything like giving 1 lakh and taking rest of amount back.
Dear Client,
No promoter can advertise, market, book, sell or offer for sale, or invite persons to purchase in any manner any plot, apartment or building without registering the real estate project with the Real Estate Regulatory Authority.
And promoter can not accept a sum more than ten per cent of the cost of the apartment, plot, or building as the case may be, as an advance payment or an application fee, from a person without first entering into a written agreement for sale with such person and register the said agreement for sale.
On these provisions you can seek refund.
Every real estate project which has land area more than 500 sqmts or has more than 8 apartments needs to be registered
2) Section 3 (1) of the Act prohibits advertisements for all projects (ongoing/future) without registration with the real estate regulator. This provision has come into effect from May 1, 2017,"
3) No promoter shall advertise, market, book, sell or offer for sale, or invite persons to purchase in any manner any plot, apartment or building, as the case may be, in any real estate project or part of it, in any planning area, without registering the real estate project with the Real Estate Regulatory Authority established under this Act," reads Section 3(I) of the law.
4) complain to RERA against builder for collecting Rs 10.30 lakhs without registration of project
1.RERA registration is mandatory, it is advisable to check whether builder is required to get registered under RERA or not .
2. Send a Legal Notice to the builder stating your reasons of discontent
3. Await for a response for the stipulated time from the other party.
4.on no-response, prepare a petition stating facts and evidences with the help of expert legal advice.
4. Approach the Consumer Court and file your petition against the builder for seeking refund of 100% advance and additional compensation .
Yes you can file a complaint to rera you will get refund
1. project needs to be compulsorily registered with RERA
2. As per RERA the builder can take only 10% of agreed sale price and has to register agreement for sale in buyer's favour
3. builder cannot charge more than 10% without first executing a registered agreement with buyer
4. the balance payment has to be paid as agreed in the registered agreement
5. first check whether this project has been registered by builder with RERA or not?
6. if not then file a complaint against builder for non compliance with RERA law
7. you can file a separate complaint for registration of agreement with possession date clearly mentioned
8. you can also club both the complaints and approach RERA
Hello,
Have you entered into any written agreement with him?
What is the condition of cancellation?
Do have receipts of payment?
Tell the facts in detail to that appropriate advise can be rendered.
Regards
Dear Sir,
When givers are there then builders will take the amounts without interest and enjoy. Get issue a legal notice and claim interest and penal interest on the amount you paid and also ask for refund of Rs.9 lakhs as it is not yet published on RERA. The big builders are afraid of court/consumer court cases due to their reputation.
Since you have already paid the advance amount you cannot ask for refund of a portion of advance amount for whatever the reason.
You can cancel the booking and ask for refund the entire amount with interest since the project has not been launched despite passing of more than one year or more.
Collecting advance amount has nothing to do with the registration of project with RERA.
RERA will interfere only when there is a dispute or fraud played by the builder in this regard.
What is amount of compensation I can ask for? I have paid 10.3 lacs with out entering any agreement and even with out having RERA registration. So, I lost the interest on 10.3 almost for 1 year. I want to drag the builder to the consumer court seeking compensation in the form of interest and additional compensation for lost of opportunities to invest in any other project. let me know the process to approach the right court.
You can also file a complaint in Consumer court for deficiency in service and compensation
You should file complaint before consumer forum seek refund of money paid by you with interest at 12 per cent per annum
2) also seek compensation of Rs 1 lakh for mental torture undergone by you
3) also seek litigation costs
Compensation award depends on many factors. Usually, consumer courts will award reasonable compensation commensurate with the loss caused to you along with cost of litigation.
You can complain to RERA also. Hire local advocate to file complaint in consumer court.
See you can file a consumer complaint and can claim refund of amount along interest with the damages and mental harassment along with litigation charges.
Further you need file a complaint before district consumer forum in the jurisdiction.
You can claim full refund with interest and also compensation as proposed by you.
However the builder may not pay the interest or any compensation hence you may have to approach consumer forum with your grievances and seek proper relief including compensation.