builder can only deduct 10 per cent of booking amount as cancellation charges
2) complain to RERA against builder and seek refund of excess amount deducted by builder
Is cancellation amount deduction legal
Hi I like a flat and filled the form of to blocked the flat, developer demanded 5 Lakh cheque for booking same, which I gave. However after 2 days I found the flat not suitable due to vaastu and cancelled it, but the developer charged 1 Lakh as cancellation charges and 8 thousand as agreement charges, which I never signed, what I filled was a form giving my address and name details. Want help in knowing is this legal? I did this on May 31st 2019, the developer only issued a cheque on 3rd Aug 2019 with 1,08,000/- deduction I want to file a cheating case and recover charges and sue for opportunity loss due to not having access to my booking amount for more than 45 days Please advise
Asked 6 years ago in Property Law
Religion: Other
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15 Answers
Dear Client,
As per facts, you have to Lodge an FIR before the police station.
See you have to file a complaint before the RERA authority as builder illegally deducted the amount/
You must have signed an application form at the time of flat booking. Please check if there are any hidden terms and conditions mentioned in the backside of the Booking Form.
Usually, Terms and Conditions of the documents will stand.
In case the terms of booking allow for flat cancellation, you should send a legal notice to the builder for claiming the Rs. 5 lakh paid by you as booking fee.
Subsequently, if the legal notice does not result in your booking fee being returned to you by the builder, you can move the concerned Consumer Court under deficiency in the Service and unfair trade practice.
1. "IF" agreement was not signed THEN cancellation and agreement charges are not payable, in any manner, more since such cancellation clauses are defined only in the agreement, wherein both (seller & buyer) are bound by it legally.
2. Criminal case is not possible. However you can file a grievance petition before the local Consumer Court, for your claims, damages, interest, refund, legal fees etc.... by following due procedure of law.
File FIR u/s 420 and 406 IPC.
The agreement had mentioned 1 Lakh dedication about cancellation, but it was only showed to me after giving the booking amount cheque, I refused to sign but the salesmen assured it is only formality, they won't really deduct but when cancelled they deducted Hence I felt, the form which I filled and signed was made to sign under hostel situation as they only told me about in the last second Hence can I not book case either in RERA or in Court ? and send the builder a notice they cannot just cut some cost under the name of company policy etc., how it stands ? when it did not caused any loss to them nor any exchange of material had still taken place
Asked 6 years ago
You himself have agreed to agreement, what hostile in it, if he fooled you. Even under RERA, cancellation without builder fault, 10% of booking amount deductible.
Well, now RERA rules follow, builder own draft of agreement not valid. Approach RERA but with builder fault and not volunteer withdrawal.
You can approach rera or consumption court for the same
You can file a case.before the RERA authoriry in this situation also to recover the amount
Provisions of RERA over ride clauses in agreement
builder can deduct only 10 per cent of booking amount
Yes you can file a case with RERA or consumer forum on ground of illegal trade practices by builder.
And you can also lodge FIR against builder for cheating and fraud.
You may approach RERA for this and seek remedy through the latest laws on it.
The builder cannot deduct such an exorbitant amount on his own whims.
If there is no such clause that you have signed authorising the builder to deduct such a huge amount on cancellation of booking then you may even drag the builder to the consumer forum for recovery of the amount deducted and also for compensation for causing you mental agony.
The lopsided agreement favoring the builder is not valid in the eyes of law.
There is a latest supreme court judgment making such one sided agreement as invalid in law, hence you may very well make a complaint with the RERA or even before the consumer forum for recovery of your amount.
Dear Client,
You can file a case before both of court as well as RERA.
- As per the information mentioned in the present query, makes it clear that you have been cheated for sure.
- See, as the agreement is there then you can’t do much as your signature is also there which are not challenged also.
- But, surely if you have any message or talk with the sales person that you got to know about it now then you can file case for cheating as well as consumer case for return of money.
- And if no word is there then also you can do a work at your part by which you would get your case made for filing.