• Legal process for compensation claim from real estate builder

I have booked an apartment with a builder 2 years back by paying 10 lacs as advance. Builder assured that the project is going to be launched soon and given a very attractive rate which tempted me to go ahead with booking. since 2 years the project is not launched and the builder has no clue on the same. it is not yet approves by RERA. He is ready to refund the amount that I have paid with out any interest. I want my money back along with interest and additional compensation for losing other investment opportunities. shall.i first take back the amount that i have paid and then proceed legally? or I have to approach legally with out taking back the principal amount? if i take back the money will i have legal right to approach consumer forum/RERA for additional compensation?
Asked 9 days ago in Property Law from Bengaluru, Karnataka
Religion: Hindu

You have to play this game very smartly. On same day you have to file case in the RERA and Consumer Forum. At the same time take the principal amount back in the form of DD or NEFT transfer. And don't sign any terms and conditions documents with builder for refund amount.

Ganesh Kadam
Advocate, Pune
8481 Answers
70 Consultations

4.9 on 5.0

File complaint against builder before consumer forum and seek orders to direct builder to refund your money with interest 

 

2) also claim litigation costs and compensation for mental torture undergone by you 

Ajay Sethi
Advocate, Mumbai
69581 Answers
4181 Consultations

5.0 on 5.0

Its better you go for consumer forum if you want interest and compensation. You can opt for rera also

Prashant Nayak
Advocate, Mumbai
14897 Answers
25 Consultations

4.6 on 5.0

If you take the refund then you cannot file complaint Before consumer forum against builder.

And if you file case before consumer forum or civil court Then you may have to wait for another two to three years if compromise is not done by you. 

Mohit Kapoor
Advocate, Rohtak
5151 Answers
1 Consultation

5.0 on 5.0

You can take back your booking amount with protest or objection first.

After that you can file a complaint against the builder before the consumer forum seeking interest as well as compensation. 

If you refuse to accept the refund of booking amount then you may have to wait for years to get back even that amount. 

T Kalaiselvan
Advocate, Vellore
59440 Answers
756 Consultations

5.0 on 5.0

issue a legal notice through an advocate to builder and file Complaint before Dist Consumer Forum and seek order to refund Amount along with compensation for mental agony. 

Mohammed Mujeeb
Advocate, Hyderabad
12143 Answers
4 Consultations

4.5 on 5.0

1. IF you take back the Principal amount, THEN legally it would amount to that you have forgone the other claims (Interest /losses /compensation for physical & mental trauma), unless you have signed any agreement /contract /undertaking with the builder for the delay /whatever ....

2. File a grievance petition before the local consumer court, with all available & relevant documentary evidences, for the negligence & harassment caused by builder and claim your principal amount alongwith Interest /losses /compensation for physical & mental trauma.  There are many positive court judgments available on such matters and you too will get sure success.

Hemant Agarwal
Advocate, Mumbai
3004 Answers
17 Consultations

5.0 on 5.0

Yes firstly take the amount then file a complaint before the consumer court seeking interest and compensation for the delay.

Shubham Jhajharia
Advocate, Ahmedabad
21308 Answers
83 Consultations

5.0 on 5.0

Dear Sir,

At the time of taking back your amount you must be very careful that you should not give any undertaking that you do not proceed against the builder in RERA or Consumer Forum. Anyway it is advisable to take back your principal amount and thereafter start litigation.

Kishan Dutt Kalaskar
Advocate, Bangalore
4750 Answers
141 Consultations

5.0 on 5.0

Real estate development and Regulation Act 2016 do not provide any jurisdiction to real estate regulator in this regard as your project is not approved and registered with RERA Authorities.

Since you paid the amount to the Builder in 2010 it is long time and The RERA was not in existence so you have the option available is file your complaint against the Builder in state consumer disputes redressal Commission because you paid the amount in 2010 calculating the interest @ 24% will give you some additional amount to claim along with legal charges, compensation and the legal expenses. total must go more than 20 lakh rupees which is eligibility to go state consumer dispute redressal Commission to qualify  to avoid filing complaints in district consumer forum  which will take additional time to decide the case and finally builder may go for appeal in state consumer Commission . commission will order the Builder to appear before the court and decide the complaint based on fats and merit.

Vimlesh Prasad Mishra
Advocate, Lucknow
5792 Answers
19 Consultations

4.9 on 5.0

It's better to first take the full refund and then proceed further with legal action for wrongful retention of money for more than 2 years, breach of trust, causing loss of opportunity and mental hardship, etc.

Sandeep Hegde
Advocate, Bangalore
414 Answers
136 Consultations

4.8 on 5.0

If you receive back the amount without interest now, later on you cannot proceed against the builder for interest and compensation, if the builder is not willing to pay it now along with your principal amount, then you must first issue a legal notice demanding both these along with your principal amount, since he has already refused to accommodate these, you can file a complaint with the district consumer court and receive back your money with interest and compensation for loss of other investment opportunities. 

Kiran N. Murthy
Advocate, Bangalore
1218 Answers
171 Consultations

5.0 on 5.0

Take refund of principal amount from builder 

 

then sue the builder to recover interest 

Ajay Sethi
Advocate, Mumbai
69581 Answers
4181 Consultations

5.0 on 5.0

after taking amount you can proceed. 

Mohammed Mujeeb
Advocate, Hyderabad
12143 Answers
4 Consultations

4.5 on 5.0

In order to avoid the confusions about filing a consumer case at a later stage towards the interest portion, you may first issue a legal  notice to the builder about refund of amount with interest.

After that accept the booking amount being paid by the builder in full.

Later on file a complaint before the consumer forum for the balance amount (towards interest).

Dont be dejected or discouraged listening to unnecessary rumours, you may try your luck, let the court decide.

T Kalaiselvan
Advocate, Vellore
59440 Answers
756 Consultations

5.0 on 5.0

See you have right for compensation and interest even after the refund. See if no undertaking or compromise or settlement in writing is done then in that case there is no issue in proceeding with the case.

Shubham Jhajharia
Advocate, Ahmedabad
21308 Answers
83 Consultations

5.0 on 5.0

You can proceed to consumer forum after taking refund of principal amount on ground that you have lost many opportunities during that period due to delay of possession and refund of money. 

Mohit Kapoor
Advocate, Rohtak
5151 Answers
1 Consultation

5.0 on 5.0

You can seek principal amount under protest and then move to consumer court for relief

Prashant Nayak
Advocate, Mumbai
14897 Answers
25 Consultations

4.6 on 5.0

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