• Developer unable to produce documents to bank for loan, I want to cancel and get refund

Hello,

I have booked 2 flats with a developer and have told the developer that I will be applying for loan to SBI only as I believe they have the best verification process. Now SBI has rejected the loan application saying below concerns
1) Couple of original linked deeds not available, they are producing certified copies.
2) Conversion of total land area to bastu is not present. A discrepancy on 3 decimal of land.
3) Sale and purchase of undivided piece of land spotted.

Now the developer is saying they will deduct 10% of the invested amount and then only return the money. And also pressurizing me to take loan from other banks.
But I don't believe other banks approval and verification process and want my money back as I feel the property is not clean.

Any suggestions and help is welcome.

Many Thanks,
Sourav Ghatak
email : [deleted]
Asked 3 years ago in Civil Law

2 answers received in 30 minutes.

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17 Answers

You are entitled to full refund as title of builder is not clear and marketable 

 

2) builder cannot deduct 10 per cent of booking amount 

 

if he fails to refund complain against builder before RERA and seek orders to direct builder to refund your money with interest 

Ajay Sethi
Advocate, Mumbai
89022 Answers
6344 Consultations

5.0 on 5.0

You must move the consumer Court against the developer

Netra Mohanchandra Pant
Advocate, Navi Mumbai
1431 Answers
5 Consultations

4.4 on 5.0

1.  See issue a legal notice to developer to refund the complete amount or provide the original linked documents and conversion discrepancy and other related information. In case the developer fails to do any of this thing file a complaint before the RERA authority. 

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

Ghatak Sir, now don't go verbal further, immediately send him a legal notice for refund of money as he is unable to give you the booked flats on the grounds of the bank's letter which is in your possession so the question of deduction of 10% amount be diluted or deleted, if he do not refund the money and opine otherwise then immediately file a case of deficiency in service before the Consumer Court with refund of money.

Koshal Kumar Vatsa
Advocate, Gurgaon
2283 Answers
3 Consultations

5.0 on 5.0

Since you are not cancelling this deal due to any fault of your, but it is only because the title documents of the builder are incomplete(as observed by SBI), you are forced to pull out of this project, builder cannot forfeit even 1% from your booking amount.

Send him a legal notice claiming full refund of your booking amount, without any forfeiture. 

Approach RERA in case he fails to do the needful. 

Vibhanshu Srivastava
Advocate, New Delhi
9441 Answers
251 Consultations

5.0 on 5.0

You have not disclosed the terms and conditions which you have signed at the time of booking of the flat but even then for recovery of your booking amount you have to send a legal demand notice to the builder through advocate and if builder did not pay the amount with in stipulated days as mentioned in your notice, you have to file a suit for recovery against the builder. You can also approach to consumer court but it will be finally decide which forum is best for you only after reading terms and conditions of your agreement.

Mohammed Mujeeb
Advocate, Hyderabad
19032 Answers
32 Consultations

4.5 on 5.0

If rera is applicable to you file complaint to rera for refund of money against builder

Prashant Nayak
Advocate, Mumbai
28058 Answers
93 Consultations

4.4 on 5.0

You can refuse the offer of the builder stating that it is his duty to produce the documents as required by bank to sanction housing loan, since he failed to produce the same, it is his fault and not yours to cancel the booking hence he cannot deduct even a singly penny from the booking amount  and demand him to return the entire amount without any deduction.

If he fails to respond or do not comply with the demand made, you may file case before consumer forum for releif and remedy including compensation for the mental agony you suffered in this regard.

T Kalaiselvan
Advocate, Vellore
79184 Answers
1611 Consultations

5.0 on 5.0

Dear Sir,

 

Following examples make you clear.

 

Cancelling an apartment booking?


Saurabh from Bangalore booked an apartment in January 2014 after taking a home loan from a well known bank. However, now he wants to cancel the booking and is ready to bear the necessary monetary loss. He wrote to Magicbricks.com enquiring about his available options while cancelling the booking? 

Buyers like Saurabh, who due to various reasons, are forced to cancel their booked property. However, the path to booking cancellation is unfamiliar to many. 
Sometime issues such as delayed project and exuberant cancellation fees being charged by builders are faced by such buyers. 

Following are some circumstances that buyers can identify and their solutions with while cancelling their booking. 

Asha Nayar Basu, partner, S Jalan & Co, a legal firm in response to Saurabh's query says, "Carefully go through the sale/ allotment agreement on the clause pertaining to cancellation of the booking. It will be as per the agreement. Some ag .. 
There are others who did not sign any agreement or did not have a clause of cancellation of the agreement. Take for instance Dharmesh, who entered into an agreement for an under construction flat. His agreement had no provision for cancellation. In such cases Basu advices, "In case there is no clause for termination or cancellation, you can cancel the same on certain grounds of impossibility to perform the same, which can be made out from the agreement. However, if the agreement is cancelled on  .. 

Netravathi Kalaskar
Advocate, Bengaluru
4952 Answers
27 Consultations

4.8 on 5.0

Registration with RERA is mandatory as building is under construction and no OC has been issued

2) complain to RERA against builder not registering his project 

 

3) in alternative complain to consumer forum and seek orders to direct builder to refund your money with interest 

 

4) complaint should be filed within period of 2 years 

 

5) builder cannot deduct 10 per cent as his title is not clear and marketable 

Ajay Sethi
Advocate, Mumbai
89022 Answers
6344 Consultations

5.0 on 5.0

You file Complaint before Consumer court seeking urgent interim relief

Prashant Nayak
Advocate, Mumbai
28058 Answers
93 Consultations

4.4 on 5.0

You can file complaint before district consumer forum on defeincy of service and seek refund and compensation for mentally torturing. .

Mohammed Mujeeb
Advocate, Hyderabad
19032 Answers
32 Consultations

4.5 on 5.0

Q.1 Before the Consumer forum.

2. 2 years from date of cause of action.

3. Since it is default on part of developer you can contest the said clause.

4. You can file a consumer complaint if on notice builder refuses or fails to refund the complete amount.

 

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

1. You have taken the right decision to cancel the booking and ask for the mioney back  since the property documents  submitted by him are not adequate.

 

2. Send him a legal notice claiming the money deposited by you back with in next 15 days.

 

3. If the developer fails to refund your money, file a complaint case before the local District Consumer Dispute Redressal Forom alleging deficiency in service and unfair business practice claiming the amount dep[osited by you back with interesty, damage and cost.             

Krishna Kishore Ganguly
Advocate, Kolkata
26791 Answers
726 Consultations

5.0 on 5.0

1. RERA has not been implemented for properties in West Bengal.

 

2. In the instant case, you have cancelled the booking for the deficiencies of the Developer.

 

3. In act you can also lodge a police complaint against him, alleging that he has chjeated you by taking the deposit showing the construction which has not been constructed as per law.

Krishna Kishore Ganguly
Advocate, Kolkata
26791 Answers
726 Consultations

5.0 on 5.0

1.  You can straightaway drag him to consumer forum with the grievances for relief and remedy.

2.  Two years period to approach consumer forum.

3.  It shall be 10% of the invested amount.

 

T Kalaiselvan
Advocate, Vellore
79184 Answers
1611 Consultations

5.0 on 5.0

  1. There has been a clause in the agreement to deduct 10 percent, there is no doubt in it, but at the same time it also needs to be seen that developer is not having all legal documents.
  2. It means that he is at fault not you.
  3. You should file a complaint in state district forum in the amount is above 20 Lakhs which you are demanding, otherwise in district consumer forum seeking all money back with interest as this situation has arisen due to his fault not yours.

Sanjay Baniwal
Advocate, South Delhi
5468 Answers
13 Consultations

5.0 on 5.0

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