Dear Sir / Madam, i have booked apartment in the year 2015 June and possession was scheduled to deliver by December 2017 and 6 month extension without any providing reason. This is under subvention scheme where the Interest for the loan amount will be paid by the builder to the bank till the possession. Flat is not delivered yet and am requesting to cancel my booking. i have paid 10% of the total amount and 80% bank loan processed. Kindly advise how to proceed.
You will have to start the process by issuing a legal notice seeking cancellation and complete refund on account of delay in completion of the project. Post the legal notice, you can either approach the RERA authority or Consumer court to seek out your remedy and compensation.
My advice however is to approach the consumer court.
Inform the builder that you want to cancel your booking on account of delay in delivery of possession
2) seek refund of money paid by you with interest
3) if builder fails to refund file complaint against builder before RERA and seek orders to direct builder to refund your money with interest
Issue a legal notice. As the builder committed default you have a riggt to cancel
Regards
G.Rajaganapathy
Thank you for the information. as i gone through the construction agreement copy. below is the cancellation clause : In the event of a request for cancellation made by second party (buyer) from the date of this agreement and upon such request for cancellation being accepted by First party (builder), the first party shall forfeit a sum equivalent of 20% of the total amount received under this agreement and under the agreement for sale together with interest and charges if any paid by the first party(builder) to the bank / HFIs on behalf of Second Party (buyer) as liquidated damages. In case of housing loan availed by the second party from Bank / HFI, unless a no due certificate is produced from the concerned Bank / HFI, the balance amounts paid by the Second Party after the deduction of the above said liquidated damages shall be refunded to the Bank / HFI by the first party but without any interest of compensation of whatsoever nature only after receipt of monies pursuant to the first party entering into construction agreement with new customer in respect of scheduled apartment. kindly advise me what will be the loss as per this agreement. is the loss on what i paid as 10% or Total cost the flat value. Kindly share if there is any standard cancellation template to fill and send to build for the cancellation.
Builder cannot levy cancellation charges at 20 per cent of total amount
2) reason being builder has defaulted in delivering possession on due date ie by June 2018
You can give a cancellation notice to builder and seek refund along the interest. In case builder fails on notice to refund the amount you can file a complaint under RERA or alternatively before the consumer court.
Since builder has defaulted and delayed the project in that case no amount can be deducted, builder has to pay interest in this case.
Irrespective of the clause cited by you, you are entitled for a full refund of whatever amount you have paid to the builder. This is in terms of remedy available to you under the RERA Act, particularly prescribed under section 18 and 19(4).
Send a legal notice of cancellation seeking full refund with interested, citing the delay. In case the needful is not done, approach RERA with a complaint and seek the remedy of refund.
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 ..
This cancellation clause was valid, if builder had completed construction and had delivered the possession with OC and CC on time. Builder is at default and you are entitle refund with interest and compensation. Buyers cannot be made to wait indefinitely for possession of property.
Issue notice of cancellation of deal and demand refund with interest, if not paid, approach Consumer court for relief and can also file criminal complaint.
You can file complaint with RERA. Alternatively you may approach Consumer Commission/Form under consumer protection act with consumer complaint for refund with interest and compensation. The consumer protection act remedy is in addition to the other remedy available.
You need to serve legal notice to builder for cancellation of flat and refund of money paid to him with Interest.
If builder refuse to cancel the flat and refund then you can approach Regulatory authority under RERA or Consumer forum for refund and cancellation on ground of delayed possession.
Builder cannot deduct cancellation charges because he delayed the possession of flat.
You can approach for cancellation if not file complaint under consumer protection Act. You can also file complaint under rera
Since this under subvention scheme, it is the duty of the builder to pay the EMI amount to the bank till handing over possession.
However you may decide to cancel the booking based on the reason what yo have stated here.
You may seek the refund of the booking amount with interest since it is the fault of the builder to delay the completion of construction and handing over possession.
You can go ahead with your decision to cancel the booking and can even drag the builder to RERA or consumer forum if he is not complying with the demands made.
The cancellation of booking was forced on you hence you may present your argument that this controversial clause is not applicable because the possession was not handed over despite years passed after the expiration of the stipulated time.
You dont worry abut the stand that may be taken by the builder in this regard, you can claim full refund, there are plenty of judgments to return the booking amount with interest in case the possession was not delivered within the stipulated time.