• I have purchased flat in June 2016. I would like to cancel the flat in Dec 2019

Hi, 
I booked a flat in June 2016. In 2018, builder changed master plan to include more flats and villas. I did not agree to this change. Flat is still to be delivered to me for possession. I would like to cancel the booking now. 

I have following questions
a) As there is change in master plan, will my cancellation attract any charges from builder?
b) Can we get refund of VAT (as GST came in 2017) and GST amount?

Thanks for clarifying
Asked 6 years ago in Property Law
Religion: Hindu

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13 Answers

Builder would be bound by the terms and conditions of the builder buyer agreement executed between you and the builder during booking of the flat. In case of any changes without your consent to the original terms of agreement, you are liable to seek complete refund, along with interest and compensation from the builder. No charges can be  deducted by the builder for cancellation of the project in your case, in fact is liable to compensate you as well as pay interest on the amount paid by you till date as per law. (VAT and GST amount is required to be refunded too)

Siddharth Jain
Advocate, New Delhi
6619 Answers
102 Consultations

1. See if the plan and undivided share is.changing then in that case builder.cannot change fee.

2. The VAT and GST shall not be refunded.

 

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

Yes it may attract cancellation charges depending on the contract with builder.

You will not get GST refund from builder for that you have to apply in income tax department.

Mohit Kapoor
Advocate, Rohtak
10686 Answers
7 Consultations

If it's registered in your name it may. 

Yes you may get

Prashant Nayak
Advocate, Mumbai
34602 Answers
249 Consultations

We have to see the Builder-buyer agreement and the sub clauses involved in it. Thereafter based on the present developments of the flat you have a remedy under the concerned District Forum. 

Mohammed Mujeeb
Advocate, Hyderabad
19350 Answers
32 Consultations

You are at liberty to cancel your booking as changes have been made in master plan without your approval 

 

 

2) seek refund of money paid by you 

 

3) if builder fails to refund file complaint against builder before RERA and seek orders to direct builder to refund Your money 

 

4) you should be entitled to full refund 

Ajay Sethi
Advocate, Mumbai
99891 Answers
8153 Consultations

You can ask builder for compensation that you're not agree with new layout plan. You will get refund after cancellation of flat if builder has not paid any VAT and GST charges in your name.

 

If VAT and GST amount is not paid to government than he can refund you those amount.

Ganesh Kadam
Advocate, Pune
13008 Answers
267 Consultations

1. How has the change in master plan prejudiced you? Has as a result of the change in master plan the area of flat been reduced or flat which you had booked has been shifted to another location?

2. Unless the change is master plan has prejudiced you, the builder is free to apply cancellation charges.

Ashish Davessar
Advocate, Jaipur
30840 Answers
981 Consultations

Cancellation is due to buyer fault, you are entitle full refund + interest + GST/Vat from builder. Builder later can process to recover from govt.

Yogendra Singh Rajawat
Advocate, Jaipur
23085 Answers
31 Consultations

Dear Sir,

If master plan is changed you are entitled for legal cancellation of your booking and claim for refund of entire amount paid along with refund of VAT etc.

Kishan Dutt Kalaskar
Advocate, Bangalore
6230 Answers
499 Consultations

a.  The builder will certainly charge for the cancellation of the booking since it is from your side.

You may have to fight it back giving the reasons for cancellation as the builder has changed the plans.

b.  If the VAT was paid to the government then you may find it difficult to get the refund of the same.

You can normally reclaim the VAT paid on goods and services if they've been purchased for use in your business. ... And if you're not VAT registered, then you won't be able to claim back on any goods or services - sorry about that, but that's the way it is

T Kalaiselvan
Advocate, Vellore
90093 Answers
2503 Consultations

- As per law, If you will cancel  the booking , due to any fault of builder, such as, delay in delivery/change in master plan which conceals earlier etc , then you have right to  get entire amount along with compensation back from the builder.

- Since, you want to cancel the booking due to concealment of builder regarding master plan , and further delay in delivery, hence the builder is bound to return the entire amount paid by you. 

- Further, as per IT Department , the builders will have to refund GST paid by home buyers in case he cancels the   booking in the last fiscal and will be allowed to avail credit adjustment for such refunds.

- If , the builder is not ready the entire amount , then you should send the builder , a cancellation notice for cancelling the booking, after mentioning the reasons of cancellation ,and thereby ask him to refund your amount within a period of 7 days.

- If, no response and not refund the amount to you , then you should file a complaint before the consumer court/RERA on the ground of said notice.

 

Good luck and dont forget to rating Positively.

Mohammed Shahzad
Advocate, Delhi
15836 Answers
242 Consultations

Dear Sir,

Cancellation possible on certain grounds of impossibility: If you did not sign any sale agreement or allotment agreement with the builder at the time of getting your allotment, there is still room for cancellation. Even in case there is no clause for termination or cancellation or you did not enter into any agreement with the builder, you are well within your right to cancel the sale on certain grounds of impossibility depending on the basic agreement between you and the builder.

In such a scenario, your grievance for cancellation should be a legitimate one, or else you may also face some legal implications of cancelling without any basis. Make sure to keep a copy of application form, allotment leer as well as the receipt for payments made to the builder to facilitate the cancellation process.

Seek legal help: Cancelling an apartment booking involves a number of legal formalities and it is better to get the help of a lawyer socializing in real estate deals. Even in case you may have everything in written from the builder and a genuine reason to opt for a cancellation, it is always a good idea to seek legal help before filling for any cancelation refunds request from the builder.

Getting a lawyer ion board can help you draft the cancellation letter and other communication with the builder without any legal loopholes that the builder may use to his advantage later.

Communicate with the builder in black and white: When opting for a cancellation f any apartment, there is no room for verbal communication or assurances. Irrespective of what the builder may assure you, make sure to get every communication in black and white.

Even if you are sending an email to the builder, it is recommended to get the mail drafted through your legal counsel. Such a communication I admissible in court and is useful in case of any dispute in refunding of the money by the builder.

Explore legal options by approaching a consumer court: If you are not happy with the money that the builder has paid you back on account for cancellation of your apartment, there is a case to approach the consumer protection court. You can take the payment from the builder under protest and file an application with your nearest consumer court seeking full refund from the builder. Make sure to have all documents in place before taking on the builder legally.

 

Netravathi Kalaskar
Advocate, Bengaluru
4951 Answers
27 Consultations

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