• Maharera

I had booked a flat i a project registered under RERA. I had paid 10% amount (Rs. 15 lacs) to the builder by signing a allotment letter and we were supposed to have formal agreement after 2 months . After 2 months before signing the agreement I have cancelled the booking. 

Now the builder is saying it has right to forefit the 10% amount by RERA act. what is the remedy in this case? Is the allotment letter letters termed as formal agreement .

please guide
Asked 6 years ago in Civil Law

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9 Answers

Dear Client,

Without executing agreement to sell, promoter can take only 10% in advance. IF earnest amount is more than 10% than promoter too at fault, hence, full amount refundable. But make sure reason of cancellation shall be paste on builder. For whatever false promotion, you have decided to cancel but not on your volition.

Yogendra Singh Rajawat
Advocate, Jaipur
23081 Answers
31 Consultations

Hi, as per RERA provisions incase if the allotte wants to cancel the flat without the fault of builder then 10percent of the booking amount has to forfeited ..In your case the builder is entitled to refund 13.5 lacs after deducting 10 percent of your booking amount ..It is advisable to issue a him a legal notice for refund of money within 15 days ,on default of which you can approach RERA for refund of your amount ..

Hemant Chaudhary
Advocate, Gurgaon
4632 Answers
67 Consultations

Builder can forfeit only 10 per cent of the booking amount 

 

 

2) 

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. N

Ajay Sethi
Advocate, Mumbai
99784 Answers
8145 Consultations

In case there is terms condition in the allotment letter then in that case builder can foreit the amount upto 10 percent you can contest though and can file a RERA complaint stating there was no agreement.

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

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.

Mohammed Mujeeb
Advocate, Hyderabad
19325 Answers
32 Consultations

  1. You will have to go thoroughly with the allotment letter about having any clause of such forfeiture matter/ right vested in the builder.
  2. And even is that clause is there then also he can’t this much amount deducted as allotment letter are not subject to such clauses, otherwise you would have gone through it at the time of signing it (this would be your plea, if there is any such clause in allotment latter).
  3. You should file a consumer complaint before the District Consumer Forum for the revenue of your amount without deducting the 10 percent.
  4. You may also file the same in RERA also if it is functional in your area.

Sanjay Baniwal
Advocate, South Delhi
5477 Answers
13 Consultations

You can send him a legal notice and file a complaint for refund at rera

Prashant Nayak
Advocate, Mumbai
34520 Answers
249 Consultations

As there is no agreement has been entered between  you both, you may object to his deduction of 10% of booking amount  and if he refuses to accept your request you may make a complaint against him with RERA.

Real Estate (Regulation and Development) Act, 2016 is going to complete a year and people are still skeptical about the implementation of the provisions of the act. One of the vital point which was not covered under the provisions of RERA was the refund of the booking amount as on the basis of same the home-buyer can’t get the status of an allottee as per Section 2(d) of the RERA Act and for the maintainability of the case a complainant should be an allottee.

Lately, the Maharashtra Real Estate Regulatory Authority in its ruling shed some light on the refund of booking amount as in its order the authority directed the developer to give back the amount of Rs 1 lakh which was paid as a booking sum by the home-buyer.

T Kalaiselvan
Advocate, Vellore
89986 Answers
2493 Consultations

Yes booking amount can be forfeited by the builder if buyer is withdrawing or canceling the booking from the project with no fault of the builder. Simply you can go to Consumer Court to get some amount back but be ready for no relief.

Koshal Kumar Vatsa
Advocate, Gurgaon
2282 Answers
3 Consultations

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