• Refund under rera and penalty clause applicable

I booked a flat in noida in Dec 15 and I was promised delivery date of flat in sale agreement as June 2019. Till date the work in my tower has not started and builder says it will be delivered in June 2020 which seems not possible. 
Now I want refund of money. Can you plz guide
1. What is the process for initiating refund? 
2. What is the penalty clause applicable under rera? 
3. How much time it usually takes to get refund under rera after initiating a complaint? 

Thanking you
Asked 5 years ago in Property Law
Religion: Hindu

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14 Answers

1. Approach RERA, since it is impossible for the builder to hand over possession to you in June 2019, as per his promise.

2. You will easily get in a refund in this case along with interest@ 9.45%. For delayed penalty/compensation, you need to initiate separate proceedings before the Adjudicating Officer.

3. About 3 months. 

Vibhanshu Srivastava
Advocate, Lucknow
9588 Answers
303 Consultations

5.0 on 5.0

Cancel your booking seek refund of your money 

 

2) if builder fails to refund your money file complaint against builder before RERA and seek refund of your money with interest at 10 per cent 

 

3) it should not take more than 6 months to get orders for refund under RERA 

Ajay Sethi
Advocate, Mumbai
94522 Answers
7485 Consultations

5.0 on 5.0

Hi,we can file a complaint under section 18 of RERA and can seek refund ,along with 10.75 percent of interest and compensation..As per RERA act ,the complaint has to be decided within 2  months after filing of complaint 

Hemant Chaudhary
Advocate, Gurgaon
4630 Answers
67 Consultations

4.9 on 5.0

Dear Sir,

The following information may kindly be read:

Cancellation and Refund under RERA

RERA registration and RERA Act is applicable for all residential real estate development with 8 units or development of plots with a total area of over 500 square meters. The RERA Act permits the homebuyer, otherwise known as an allottee, to withdraw from the real estate agreement, whether or not the developer is at default. In such a scenario, the developer is obliged to refund the amount paid by the allottee within a period of 90 days (according to TNRERA) of the allottee’s withdrawal, after deducting the amount paid for the allotment.  In this article, we look at the rules and regulations relating to cancellation and refund under RERA in detail.

Cancellation under RERA

A homebuyer may withdraw from a purchase agreement for varied reasons. While some of them can be attributed to the default committed by a promoter, the other likely reasons for such a withdrawal could be due to dismal market situations, personal or financial emergencies or other reasons.

Home buyers rights under RERA.

Promoters Default

If a promoter fails to complete a project within the stipulated time or is unable to provide possession of the real estate property due to any reason whatsoever, the promoter must refund to the homebuyer, any amount received for the property. In addition to refund of the amount paid, the promoter is also required to pay an interest at the prescribed rate in this behalf including compensation.

Finally, the promoter is also required to compensate a homebuyer on any losses caused due to a defective title of the land, on which the project is/has been developed.

In case of delay and if the buyer is unwilling to withdraw from the contract, the promoter is obligated to pay the necessary interest until the project is completed. However, if the delay occurs due to any natural or other calamities which is not in the control of the developer, the promoter is not obligated to make any payment of interest.

Allottees Default

If a homebuyer fails to make the necessary payments for a continuous period of time, the developer is empowered to terminate the agreement and revoke the allotment made to the buyer. The provision of refund here is no different from the general RERA rule i.e. the amount paid to the promoter must be refunded to the homebuyer within a period of 90 days, (According to TNRERA) excluding booking amount and interest liabilities.

The liability for paying interest not only affects the promoter but the homebuyer as well. The promoter is entitled to claim interest from the homebuyer for any delay in payments.

Amendment of Agreement

The RERA Act now provides room for both allottees and developers to amend the sales agreement, provided both the parties consent to it by writing.

Rate of Interest

The rate of interest payable by either the promoter or the homebuyer will be the State Bank of India’s highest Marginal Cost of Lending Rate + 2%. If the State Bank of India’s Marginal Cost of Lending Rate is not applicable, it would be replaced by the benchmark lending rates stipulated by the Government-owned banking body i.e. State Bank of India.

Netravathi Kalaskar
Advocate, Bengaluru
4952 Answers
27 Consultations

4.8 on 5.0

1. You can send him a notice cancelling the agreement and seeking the refund of the advance money.

2. The penalty to be imposed for deductions would be governed by the terms of the agreement.. If the agreement does not provide such details then RERA would govern it.

3. It depends on developer . If delay is inordinate then you can consider fling case before the consumer forum.

Devajyoti Barman
Advocate, Kolkata
22779 Answers
484 Consultations

5.0 on 5.0

1.in order to get complete  refund along with interest and compensation from the builder, you will have to file a complaint against him in consumer court or in RERA.

2. Rera generally awards about 10 to 14 % interest per annum on the total amount paid.

3. The cases are disposed off within 6-8 months.

Siddharth Jain
Advocate, New Delhi
6303 Answers
102 Consultations

5.0 on 5.0

File FIR agasint the builder, fast recovery. Also complaint to RERA. Depends on pendency of cases otherwise recovery in a month.

Under RERA, entitle to refund with interest. You can also file consumer complain for refund with compensation. 

 

Yogendra Singh Rajawat
Advocate, Jaipur
22596 Answers
31 Consultations

4.4 on 5.0

Hi

You are suggested to send legal notice that due to deliberate delay of the builder, you are withdrawing from the project and the amount paid by you must be returned with interest and penalty for delay. If not refunded by builder file the case to RERA online and the case may be decided within one year. 

Ganesh Singh
Advocate, New Delhi
6757 Answers
16 Consultations

4.5 on 5.0

You can file a complaint in rera and seek refund

Prashant Nayak
Advocate, Mumbai
31807 Answers
175 Consultations

4.1 on 5.0

1. You can first issue a notice of cancellation to builder seeking refund with interest as he failed to deliver the flat on time. If on notice the builder fails to refund you can file a RERA complaint or alternatively a consumer complaint .

2. You shall get refund along with interest of around 10 percent as per RERA.

3.Proceedings before RERA are fast though it can take time of 6-8 months to complete same.

Shubham Jhajharia
Advocate, Ahmedabad
25514 Answers
179 Consultations

5.0 on 5.0

1. Send a legal notice to the builder 

2. Thereafter file a case before RERA. 

3. It will take 4-6 months 

Anilesh Tewari
Advocate, New Delhi
18077 Answers
377 Consultations

5.0 on 5.0

you can approach Consumer forum or RERA seeking compensation for delay. that is the best available option against the builder. 

Mohammed Mujeeb
Advocate, Hyderabad
19299 Answers
32 Consultations

4.7 on 5.0

Dear client


  1. Complaints can be filed under Section 31 of the Real Estate (Regulation and Development) Act, 2016, either with the Real Estate Regulatory Authority or the adjudicating officer. Such complaints may be against promoters, allottees and/or real estate agents. Most state government rules, made appurtenant to the RERA, have laid out the procedure and form, in which such applications can be made. In the case of Chandigarh UT or Uttar Pradesh, for instance, these are placed as Form ‘M’ or Form ‘N’ 

  2. Section 18 of The Real Estate (Regulation and Development) Act, 2016 clearly lays down that if the promoter fails to complete or is unable to grant possession of an apartment, plot or building,— (a) in accordance with the terms of the agreement for sale or, as the case may be, duly completed by the date specified therein; or (b) due to discontinuance of his business as a developer on account of suspension or revocation of the registration under this Act or for any other reason, he shall be liable on demand to the allottees, in case the allottee wishes to withdraw from the project, without prejudice to any other remedy available, to return the amount received by him in respect of that apartment, plot, building, as the case may be, with interest at such rate as may be prescribed in this behalf including compensation in the manner as provided under this Act: provided that where an allottee does not intend to withdraw from the project, he shall be paid, by the promoter, interest for every month of delay, till the handing over of the possession, at such rate as may be prescribed.
  3. When you file a complaint for the refund and same is proved the builder or promoter have to pay you the refund with in 90 days from the order. 

Mohit Kapoor
Advocate, Rohtak
10687 Answers
7 Consultations

5.0 on 5.0

1. First you send a communication to the builder in writing by registered post intimating that you are canceling the booking owing to the inordinate delay and seek refund of entire booking amount along with interest till date within a week from the date of receipt of this registered post.

Let him give a reply denying the payment or with some flimsy excuses, you can approach RERA or consumer court for releif and remedy.

 

2. Since this is the fault of builder he only has to pay the penalty as per RERA rules.

 

3. It cannot be predicted though the time limit is just six months, owing to several factors involved in this.

 

T Kalaiselvan
Advocate, Vellore
84711 Answers
2172 Consultations

5.0 on 5.0

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