• Refund required for cancellation of booking of flat

Sir ,i have booked flat in 2017 in mumbai .The Total Cost of flat is around 5 Cr. I have paid 50% amount around 2.5 Cr. I want to cancell the flat due to financial problems. Sir stamp duty and Registration has been paid by builder and i think it is paid pradanmantri Aavas scheme . Service tax of approx 8 lakhs has been paid by us ,GST of 12% has been paid by on 1.25 cr approx 15 lakhs gst paid. Total 23 Lakhs paid by me for service tax and GST. Let me know what is procedure for cancellation and how much amount builder can deduct my amount . I have paid 2.5 cr including 23 lakhs for service tax and gst. Stamp duty of 22 lakhs has been paid by builder. Also the Agreement value is 4.45 cr and balance is misc amount of 55 lakhs . Total value of flat is 5 cr. Please guide . Any mumbai advocate who is having idea in the matter i can meet personally. My email id is [deleted]
Asked 9 days ago in Property Law from Greater Mumbai, Maharashtra
Religion: Hindu

1) Whatsoever is paid as stamp duty, registration charges, GST etc whichever is government charges that you won't get back only GST can be considered on cancellation basis.

 

2) After paying 50% amount it's not good idea to cancel the flat as more than 50-60 lacs will be eaten by builder as cancellation charges and other government charges waste of money.

 

3) Its better to tell builder another transaction instead cancellation this current transaction.

 

4) Divert this transcations to new sell deed and get possession and current status of project.

Ganesh Kadam
Advocate, Pune
5475 Answers
40 Consultations

4.9 on 5.0

Hi, is there a cancellation clause in the builder Buyer agreement? if the builder refuses to refund the amount as per cancellation clause , you can file the case in NCDRC ( national commission forum ), Delhi .. Approaching RERA is not advisable as RERA authority does not have execution powers , and as authority is more inclined for giving compensation for delay rather then refund on cancellation or withdrawal

Hemant Chaudhary
Advocate, Gurgaon
3968 Answers
20 Consultations

4.9 on 5.0

In the event of cancellation of booking builder can deduct cancellation charges as per terms of your agreement 

 

2) I presume project is registered with RERA 

 

3) on cancellation 10 per cent booking amount would be forfeited by builder 

 

3) you can contact  any local lawyer 

 

4) necessary to peruse agreement signed by you with builder 

Ajay Sethi
Advocate, Mumbai
56959 Answers
3456 Consultations

5.0 on 5.0

Hello,

The cancellation has to be done in the registry office in presence of the builder.

Regards

Swarupananda Neogi
Advocate, Kolkata
887 Answers
2 Consultations

4.8 on 5.0

The allottee or flat buyer can complain for cancellation of allotment and refund of his money with interest only when the builder commits default of the obligations contained in the agreement or the provisions of the real estate act and of its rules, u/s 18 of Rera

A builder can cancel the allotment only u/s 11(5) of rera act provided the cancellation is in accordance with the terms agreed on cancellation as contained in the agreement

There is no express provision in Rera or Mofa for the case when buyer wishes to cancel the allotment and agreement due to financial constraints

So since you wish to cancel the agreement for no fault of builder, you need to check the agreement terms applicable on cancellation 

Generally the builder forfeits certain amount towards penalty for premature cancellation and refunds the balance after deducting such penalty. Also the refund is not given immediately 

Also he will not refund the taxes paid on execution of agreement as they are already deposited with the government by builder

So i suggest you find a buyer who can buy your flat. The only expense in that case would be to pay transfer fees to the builder for giving his noc for transferring the flat to the name of your buyer 

You cannot do anything legally against the builder as in your case he is not in default 

Yusuf Rampurawala
Advocate, Mumbai
3186 Answers
12 Consultations

5.0 on 5.0

Hi, for cancellation you can send an e-mail or notice from the lawyer ... The cancellation will be as per the builder buyer agreement (if there is a clause for forfeiture of 10 percent ) .. The builders looking at current real estate conditions, refuses to accept cancellation requests from allottes ..

Hemant Chaudhary
Advocate, Gurgaon
3968 Answers
20 Consultations

4.9 on 5.0

If rera is applicable to you then you can file complaint for refund

Prashant Nayak
Advocate, Mumbai
4875 Answers
3 Consultations

4.8 on 5.0

You have request builder to cancel the booking and refund your money 

 

2) mention that on account of financial constraints you are unable to make balance payment 

 

3) builder would deduct 10 per cent booking amount and refund you balance amount 

 

4) if builder refuses to refund your money file complaint against builder before RERA for refund of your money 

 

5) builder has to refund your money within 45 days 

Ajay Sethi
Advocate, Mumbai
56959 Answers
3456 Consultations

5.0 on 5.0

1) Financial reason you can give to builder for cancellation of flat.

2) 10% on booking amount, but here you have paid 2.5 crore ..your 20% come to 25 lacs plus PMAY  2.5 lacs, 22 lacs, so approx 50 lacs will get deducted. And refund amount depends upon builder within how many days he wants to refund it. As legally within 30 days he has to refund it.

Ganesh Kadam
Advocate, Pune
5475 Answers
40 Consultations

4.9 on 5.0

 it is common for builders to deduct a cancellation charge, usually 10 per cent of the cost of the apartment, before refunding the booking amount. Apart from this charge, any government tax paid by the buyer such as Stamp duty, GST or service tax will also be deducted from the refund.

Mohammed Mujeeb
Advocate, Hyderabad
4635 Answers
3 Consultations

4.5 on 5.0

1. The terms of cancellation and the implications arising therefrom is to be guided by the sale agreement itself. So refer to the relevant clause to find out the amount to be deducted while the agreement is cancelled .

2. The amount of 10% deductions seems reasonable since the builder has already paid the stamp duty and registration fees which the buyer is supposed to pay.

3. Since the cancellation is to be dome from your end without the fault of the builder, the terms of cancellation may not be favourable to you.

Devajyoti Barman
Advocate, Kolkata
15387 Answers
211 Consultations

5.0 on 5.0

This is my response to you:

1. If you have only paid 50% then you can get full refund;

2. This will depend on your booking letter, MOU or Agreement to Sell;

3. The clauses or the terms & conditions will be mentioned in the same;

4. If the builder is liable to 10% refund or no will also be considered if the project is RERA registered;

5. You will have to state genuine reasons otherwise you may not get full refund;

6. Consult a local lawyer and take steps.

Gowaal Padavi
Advocate, Mumbai
1599 Answers
2 Consultations

5.0 on 5.0

Sir, 

yes sir, you are entitled for the refund  of the amount after the deduction of 105 as mentioned in the agreement clause.  as far as  the stamp duty/service tax/GST is concerned, you will not get that amount from the developer, further he will also deduct the stamp duty which  has been paid by him. since you are seeking refund of the amount due to financial stress, approaching the RERA authorities will not be a safe option. as far as payment of stamp duty and GST is concerned you can seek refund of  it from the tax authorities, provided you have to lodge your claim. if the developer is not returning the amount soon then check whether there is arbitration clause,  because in that event you cannot approach the court but have to approach arbitrator in case of dispute.  Start with a request letter  to teh builder, his subsequent action will be the course to decide whether you have to send legal notice or not. 

Devendra singh , [deleted] 

suigeneris.com

Devendra Singh
Advocate, Mumbai
28 Answers

4.0 on 5.0

You may go through the clauses which governs the cancellation condition.

Since this cancellation is being initiate from your side for no fault of builder, you may hve to shell out more towards the charges for cancellation.

As per RERA,  home buyers can cancel allotment of the apartment booked with a builder at any stage even if there is no default on the part of the developer. The builder is also bound by law to return the money collected from buyers within 45 days, after deducting the booking amount.

“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 rule.

T Kalaiselvan
Advocate, Vellore
46951 Answers
557 Consultations

5.0 on 5.0

if you cancel the booking for a registered project, the promoter has to refund the amount collected after deducting any cancellation or forfeiture charges stipulated in the agreement to sale/allotment letter.

Cancellation of booking will purely be governed by the contact between you and the promoter and if the contract stipulates 100% forfeiture of booking money, then you might not have any recourse under RERA.

Any VAT or service tax or GST paid  shall not be refunded. 

Apart from this, any stamp duty or tax or GST paid by the builder shall be deducted from the refund amount.

There is no specific rules in this regard, it is the discretion of the builder hence you cannot protest the builder on this aspect.

The builder may even waive off this cost.

T Kalaiselvan
Advocate, Vellore
46951 Answers
557 Consultations

5.0 on 5.0

Ask a Lawyer

Get legal answers from top-rated lawyers in 1 hour. It's quick, easy, and anonymous!
  Ask a lawyer