• Refund of amount from builder in case the allotment is done

I paid in advance rs 2 lakh for a property booking , now because of my personal issue i want to cancel it. Builder is saying that he will not return any amount as i have signed an allotment form (where the cancelllation clause was mentioned). The agreement is not done yet , please let me know the legal procedure . Can i get my booking amount back?
Asked 4 years ago in Property Law
Religion: Hindu

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18 Answers

1) builder can deduct 10 per cent of booking amount as cancellation charges 

 

2) he cannot refuse to refund any amount 

 

3) file complaint against builder before RERA and seek orders to direct builder to refund your money with interest 

Ajay Sethi
Advocate, Mumbai
94712 Answers
7530 Consultations

5.0 on 5.0

Booking amount is subject to forfeiture in absence of any terms to the contrary, on cancellation of booking by the other party.

If the payment are in the nature of advance payment, you can claim refund after deduction of some reasonable cancellation charges. Make sure of it whether payment was an advance or booking amount in nature .

Now as per RERA  builder can not take any deposit in any form, of more than 10% of the cost of apartment ,plot without entering into written agreement for sale duly registered.

If the booking amount exceeds 10 % of the cost of your apartment, it shall be illegal and you can claim refund of the entire amount paid by you. 

Kallol Majumdar
Advocate, Kolkata
2837 Answers
14 Consultations

5.0 on 5.0

No allotment letter can contain a clause where in cancellation the whole money paid for booking the flat would be forfeited.

So send him a legal notice and seek full refund.

if he does not hen file case before the consumer forum wherein you would get full refund, interest not more than 9 % and damages and compensation.

Devajyoti Barman
Advocate, Kolkata
22821 Answers
488 Consultations

5.0 on 5.0

 eventually you cannot force the Builder to refund the advance amount as you have already signed the application form which may have the clause regarding advance payment and refund you need to to take up the matter with builder only amicably so that you can get refund otherwise legally it is not possible

Vimlesh Prasad Mishra
Advocate, Lucknow
6852 Answers
23 Consultations

4.9 on 5.0

Hello, 

1. One needs to see the terms and conditions on the booking form to find out if you had bound yourself to forefiet the amount paid as booking amount. 

2. You can send him a legal notice demanding the refund immediately. 

3. He can deduct a nominal amount as cancellation charges. 

S J Mathew
Advocate, Mumbai
3547 Answers
175 Consultations

5.0 on 5.0

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  .. 

Netravathi Kalaskar
Advocate, Bengaluru
4952 Answers
27 Consultations

4.8 on 5.0

See if the amount paid by you is less then 10 percent of total amount then for that even if agreement is not there the condition of allotment letter shall be applicable. See builder can take defense of terms and conditions signed by you though you can try and file a RERA complaint for refund of your amount.

Shubham Jhajharia
Advocate, Ahmedabad
25514 Answers
179 Consultations

5.0 on 5.0

You should file a case in the district consumer forum. Make builder a party and demand compensation for harassing you and not returning the amount.

Regards 

Rahul Mishra
Advocate, Lucknow
14088 Answers
65 Consultations

5.0 on 5.0

If the agreement is not done yet he can return by deducting some percentage from the same. You can approach consumer court against him

Prashant Nayak
Advocate, Mumbai
31946 Answers
179 Consultations

4.1 on 5.0

What does the cancellation clause in the allotment form reads?

You should send a legal notice to this Builder, seeking refund of your deposit of Rs. 2 lacs. Builder cannot forfeit the whole amount, but only a small percentage in lieu of certain administrative expenses incurred by him. 

Vibhanshu Srivastava
Advocate, Lucknow
9600 Answers
303 Consultations

5.0 on 5.0

For no fault of buyer, if you will cancel booking, builder can forfeit booking amount. Find fault in builder offer. That he offered that and now in agreement is offering different than offered. 

Yogendra Singh Rajawat
Advocate, Jaipur
22633 Answers
31 Consultations

4.4 on 5.0

Yes. You can approach Consumer Court and claim your bookings amount. 

Jamal Sait
Advocate, Bangalore
168 Answers
2 Consultations

4.9 on 5.0

Signing allotment letter does not mean its a "Agreement to Sale" registered agreement where all terms and conditions are mentioned.

 

You make complaint against builder in the consumer forum and RERA registration.

Ganesh Kadam
Advocate, Pune
12930 Answers
255 Consultations

4.9 on 5.0

As per the cancellation clause what happens in an event such as this, if you as the buyer decide to cancel, does it specifically state that the builder will not refund the entire advance amount or does it say that 25% of the amount paid will be deducted and balance will be refunded. 

Anyways, under any of the above circumstances, legally the builder can deduct upto 25% of the amount paid by you towards booking and refund the balance amount. If the builder is stating that he will not refund any amount back to you, you can proceed to issue a legal notice asking him to refund back the entire amount to you within a certain period say 7 or 15 days, if the builder fails to do so, then you can proceed to file a consumer complaint before the District Consumer Disputes Redressal Forum, at Bangalore.

Kiran N. Murthy
Advocate, Bangalore
1298 Answers
194 Consultations

5.0 on 5.0

you can file an appeal before the national consumer court under section 21 of consumer act. pray for refund  of money along with interest

 

Mohammed Mujeeb
Advocate, Hyderabad
19299 Answers
32 Consultations

4.7 on 5.0

Dear Sir,

you can get it back by issuing a legal notice with some deduction towards administrative expenses or else you can approach the consumer forum.

Kishan Dutt Kalaskar
Advocate, Bangalore
6136 Answers
487 Consultations

4.8 on 5.0

You can send him a intimation for cancellation of flat.

Builder cannot deduct complete advance paid to him he can deduct a nominal penalty as cancellation charges.

If he refuse to refund the money lodge complaint in RERA for refund of money.

Mohit Kapoor
Advocate, Rohtak
10687 Answers
7 Consultations

5.0 on 5.0

You can issue a legal demand notice to the builder intimating your decision to cancel the booking for the reasons that you may rely upon and demand the return of booking amount since the agreement is also not entered between both and the allotment letter is not legally valid or binding.

If the builder is refusing to return the amount, you may either make a complaint with the RERA or before the consumer forum for relief and remedy.

 

T Kalaiselvan
Advocate, Vellore
84913 Answers
2194 Consultations

5.0 on 5.0

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