• Cancellation of booking an under-construction property


We had booked an under-construction apartment and the builder has delayed the project due to funding issues. So they haven't started building and we have paid some 20% . We already had an agreement in place and the project was to be delivered by June 2021. However, the builder has put our money in the other ongoing project in the same area to meet the deadline. They have asked us to swap to their ongoing project because our project would get delayed.

Since we do not want to proceed with the ongoing project and the project for which we had invested has been delayed until not any specific date, So we want to take out our money.

Based on our discussion with the builder, he says he can refund only upon completion of the ongoing project which is 1.5 year from now.Since in our agreement it writeen after cancellation due to delay they have to refund within 90 days.They told us that our money is locked with their construction.

Can we get some guidance here on how we can proceed with cancellation and the refund on time as our project is not even started.
Asked 9 months ago in Property Law from Bangalore, Karnataka
Religion: Hindu

You can cancel the same and seek refund. If he is not paying the money you can approach rera or consumer court

Prashant Nayak
Advocate, Mumbai
17530 Answers
30 Consultations

4.6 on 5.0

You are at liberty to cancel your booking and seek refund of money paid by you 


2) if builder delays refund for more than 90 days  file complaint against builder before consumer forum and seek refund of money paid by you with interest 



3) in alternative complain  to RERA 

Ajay Sethi
Advocate, Mumbai
73115 Answers
4389 Consultations

5.0 on 5.0

Since the project is delayed and you can demonstrate this through documentary evidence, approach RERA and seek refund of your deposit along with interest.

You are protected in terms of section 18 and 19(4) of the Real Estate Act/ 

Vibhanshu Srivastava
Advocate, New Delhi
8755 Answers
152 Consultations

5.0 on 5.0

See if in written builder has given that the project is delayed then at this stage you can step for cancellation otherwise the builder has time upto 2021 as per promised date. So in case there is proof of delay from there side then you can seek cancellation and can ask for amount if they fail you can file a consumer complaint against the builder. 

Shubham Jhajharia
Advocate, Ahmedabad
23519 Answers
94 Consultations

5.0 on 5.0

Dear Sir,

He cannot play like that. Just get issue a legal notice and file consumer case for refund and compensation towards mental torture. You will succeed because the builder do not wish their reputation come down. Try to tarnish his image if he did not budge.


Kishan Dutt Kalaskar
Advocate, Bangalore
5041 Answers
160 Consultations

5.0 on 5.0

You can file a complaint under Consumer Protection Act. Present all the related documents before court and claim refund of entire money as well as proportionately for the stress mental agony you suffered. 

Mohammed Mujeeb
Advocate, Hyderabad
14598 Answers
6 Consultations

4.5 on 5.0

Ongoing projects are covered under rera. Approach RERA with your complaint. It's the best option these days

Advocate, New Delhi
160 Answers

4.9 on 5.0



You may send a letter to them for the cancellation of flat and for the refund of the money that have been given by you and thereafter if they do not refund the money then you may show them a legal notice

If After the legal notice also they do not refund the money then you may file a case against the builder before RERA and take your refund back along with interest.



Anilesh Tewari
Advocate, New Delhi
17471 Answers
283 Consultations

5.0 on 5.0

Serve a legal notice on the builder to comply with the terms of the sale agreement and start the construction work or make a refund of the advance money which he received from you along with the interest as laid down in RERA. Further, you may mention in your notice that the builder had contravened the provisions of section 4(2 l D)  of RERA as he had used and invested your money in another ongoing project. 

If the builder doesn't make a refund of the entire amount with interest, lodge a complaint with RERA.



Robert D Rozario
Advocate, Kolkata
24 Answers

5.0 on 5.0

Issue a legal notice to the builder seeking cancellation and refund of your monies within 90 days, failure to do so, proceed to file a consumer complaint against builder while seeking refund with interest, litigation expenses and compensation.

Contact a good consumer advocate to process this.

Kiran N. Murthy
Advocate, Bangalore
1262 Answers
179 Consultations

5.0 on 5.0


You can cancel your booking any time and seek refund from builder and he can't deny the refund. 

If he still doesn't refund the money send him legal notice through advocate and then file petition in consumer Forum or RERA for getting the refund. 

Mohit Kapoor
Advocate, Rohtak
7194 Answers
2 Consultations

5.0 on 5.0

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