• Real estate builder not refunding the money

I been through cancellation of property because of current covid situation.
The amount already paid to the builder was 10% (4,32,000)
Out of that , builder says that 1lac was the booking amount and can’t be refunded. That’s fine 
But the remaining 3,32,000 builder has agreed (on 8th April) that they will pay. But the are now citing reason for lockdowns for not processing funds.
This is despite all the work of builders going on. And there should be no problem in money transfer as banks are working fine.

How can I sue or send notice to builder ?
If they make any further delay, can I claim interest on my money they have kept ?
Asked 3 years ago in Consumer Law

3 answers received in 10 minutes.

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24 Answers

Send him legal notice for going to consumer forum with FIR of extortion charges, that should suffice your need

Aveek Bose
Advocate, Kolkata
1222 Answers
9 Consultations

4.7 on 5.0

He’s legally bound to refund the remaining amount of 3.32lacs, in case he can’t forfeit anything over and above the booking amount, off course in accordance with the Agreement/ terms and conditions in the booking form. Send him a legal notice to forthwith process your refund along with interest for the delay that has been occasioned. You are legally entitled to claim interest for the delayed that’s been happening 

Vibhanshu Srivastava
Advocate, Lucknow
9525 Answers
290 Consultations

5.0 on 5.0

Dear Sir,

You are suggested to serve the legal notice and if the money is not returning, file the case . 

Ganesh Singh
Advocate, New Delhi
6705 Answers
16 Consultations

4.5 on 5.0

File complaint against builder before RERA and seek refund of money paid by you with interest 

Ajay Sethi
Advocate, Mumbai
92891 Answers
7157 Consultations

5.0 on 5.0

Dear Sir, 

You may file a complaint against the Builder in RERA to get your refund with interest.

Jaswant Singh
Advocate, Gurugram
929 Answers
2 Consultations

4.8 on 5.0

Dear querist, 

These are the possible legal recourse available to you:

1. You can file a consumer complaint against the builder in accordance and relying on the agreement signed and you can also claim compensation for harassment.

2. You mentioned that he is denying 1 lakh rupees (booking amount), that depends on the agreement, which has to perused, but on a large viewpoint,he is liable to reimburse you the amount of 3,32,000 and 1 lakh.

3. If the property or the builder is RERA registered, then you can file a case at RERA authority and claim compensation. 

But, in my opinion, before filing the case, a legal notice must be sent to the builder which might suffice your requirement. 


You can contact me for consultation, in case you require my assistance in the matter. 




Yuganshu Sharma
Advocate, Delhi
430 Answers
1 Consultation

5.0 on 5.0

See you can engage an advocate and through mail cam send a notice to builder for refund of the total amount along with the interest on delay. In case on notice also if builder refuses you have to file a consumer complaint or alternatively a RERA complaint after lockdown is lifted.

Shubham Jhajharia
Advocate, Ahmedabad
25514 Answers
179 Consultations

5.0 on 5.0

Notice can be send from any where in India. Since postal services are closed, delivery of notice through whats app, e mail is valid delivery.

Do you have their assurance to refund on 8th April in written ? Oral commitment hard to prove. Better cite force force majeure due to lock down and default at builder end to claim full amount.

You are entitle to interest on delayed payment.

Yogendra Singh Rajawat
Advocate, Jaipur
22323 Answers
31 Consultations

4.4 on 5.0


  1. You can send a Legal Notice demanding refund by engaging a lawyer. If you choose, you can engage any lawyer from Kaanoon by paying reqisite fee of the lawyer.
  2. Yes, you can demand an interest for the delay caused or until the payment is made.

S J Mathew
Advocate, Mumbai
3528 Answers
175 Consultations

5.0 on 5.0

Send him a legal notice for releasing the funds to you.

If he doesn't do than you will have to file a specific performance suit or money recovery suit against him

Rahul Jatain
Advocate, Rohtak
5365 Answers
4 Consultations

4.8 on 5.0

1. The whole of the booking money can not be forfeited even f there is an agreement on that regard.

2. Now you can always engage an advocate who can send the builder legal notice through email.

3. On normalisation of situation if you are paid your money you can file case before the consumer forum wherein you will get both refund and damages along with interest.

Devajyoti Barman
Advocate, Kolkata
22526 Answers
459 Consultations

5.0 on 5.0

You can send him a legal notice to him through lawyer and later can file case against him in consumer court or rera.For any assistance contact me in kaanoon on 9a7g6g9g4e9g0f9f1a1. Consultation charges applicable.

Prashant Nayak
Advocate, Mumbai
30784 Answers
155 Consultations

4.1 on 5.0

- There is no guidelines laid down by the government to forfeit the booking amount for the cancellation, and the deduction is done at the builder’s discretion.

- Hence, legally, the builder cannot deduct any money out of the advance payment you have paid for the booking till the time a builder-buyer agreement is made and registered with the sub-registrar.

- Further, A builder-buyer agreement is not created until the buyer pays at least 10 per cent of the property value.

- Further, as per Real Estate Regulation Act (RERA), home-buyers can cancel allotment of the apartment booked with a builder at any stage even if there is no default on the part of the developer. The builder is bound by law to return the money collected from buyers within 45 days, after deducting the booking amount.

- Hence, if you have already paid 10 percent of the flat value , and if the said agreement signed by you , is not registered in the office of the Registrar , then you are liable to get full amount refund paid by you ,even there is a clause present in the agreement for not refunding  , and if the said agreement is registered , then builder has right to deduct booking amount from the paid amount. 

- Since, the builder is refunding your amount in the name of Covid-19, and also without any sufficient reasons, then you should firstly send a legal demand notice .

- If, no response within a period of 7 days of time, then you should lodge your complaint before the Consumer court , and thereby prayed for the refund of paid amount with interest.


- Good luck and dont forget to rating Positively. 

Mohammed Shahzad
Advocate, Delhi
12176 Answers
170 Consultations

5.0 on 5.0

If there is any clause for booking amount in the sale brochure of builders or any where did builder has mentioned that the cancellation fees will be 1 lac rupees.


otherwise first you can send him normal notice for refund of fund and later on legal notice. but before sending legal notice. I will suggest you after lock down period is over you can make complaint in the consumer forum and in the RERA office pune.

Ganesh Kadam
Advocate, Pune
12822 Answers
239 Consultations

4.9 on 5.0

Hi, it is advisable to issue a legal notice for refund of your money ..As per RERA provision builder has to refund money after deducting booking amount on course of cancellation..Later you can file complaint before RERA and seek refund along with interest and compensation if he refuses to refund the money 

Hemant Chaudhary
Advocate, Gurgaon
4629 Answers
67 Consultations

4.9 on 5.0

Assume that, you have confirmation in writing / message etc., from Builder about about refund of 3.32 lakhs.

In case if he does not refund the agreed amount, you need to issue notice demanding the refund of amount after adjusting cancellation charges.

If he fails to respond, you lodge compliant with RERA against Builder by appending the above documents.

You can file case before Consumer Forum, seeking direction from Forum to direct the Builder to refund the amount, damages for mental agony and also litigation expenses.


S Srinivasa Prasad
Advocate, Hyderabad
2876 Answers
9 Consultations

5.0 on 5.0

You first issue a legal demand notice demanding the return of booking amount after deductions of statutory deductions.

You can stipulate a time period for him to comply with the demand made.

If he do not respond or comply with the demand made then you can sue him for recovery of your money along with interest.


T Kalaiselvan
Advocate, Vellore
83082 Answers
1999 Consultations

5.0 on 5.0

1. Due to lockdown he can delay processing the refund, but he is liable to pay it.

2. At this stage even if you go to court against builder the court will not hear the case as presently courts are hearing only urgent cases.

3. Wait for the lockdown to be withdrawn and then serve the lawyer's notice to builder for refund of money. If even then the amount is not withdrawn then you will have to sue the builder for recovery of money.

4. It is imperative that you serve him a notice for cancellation immediately.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

You may issues notice of recovery of your amount from the Builder giving him two to three week time.

If not paid during 3 week time then file Application before RERA having jurisdiction over the property for refund of cost of flat paid to the Builder.

All the Best. 

Ramesh Pandey
Advocate, Mumbai
2541 Answers
8 Consultations

5.0 on 5.0

1. You cannot force builder to refund your money during lockdown of COVID 19 as this obligation of contract due to forced Majeure clause.

2. Yes you can claim interest on delay of refund but interest cannot be claimed for lockdown period.

Mohit Kapoor
Advocate, Rohtak
10687 Answers
7 Consultations

5.0 on 5.0

The booking amount should also be refunded. A legal notice must be sent and a complaint must be filed in the RERA TRIBUNAL as and when the courts open the amount and the interest accrued on it.

Rahul Mishra
Advocate, Lucknow
14052 Answers
65 Consultations

5.0 on 5.0

Immediately notice to the developer asking for or refund of your amount citing the reason that the banks are fully functional. .

Garima Anil Mehrotra
Advocate, Mumbai
514 Answers
1 Consultation

4.9 on 5.0

You have two option there

First to file consumer complaint for deficiency of service on the part of builder by claiming back your earnest amount along with claim of compensation.

Secondly you have option to file civil suit for recovery of amount so given by you as earnest amount.

Mohammed Mujeeb
Advocate, Hyderabad
19291 Answers
32 Consultations

4.7 on 5.0

From examining all the facts of your query I want to say that-
These cases are very common in nowadays. I can understand your problem. Many people/clients call me to help in such cases. In view of the lockdown, the Reserve Bank of India ("RBI") on 27th March, 2020 announced the COVID-19 package with an intention to bring relief to the ailing financial sector. The real estate sector has been impacted as well with the tightened restrictions and the construction work of all the real estate projects has been severely affected in the manner that the partial workforce has been unable to attend work or construction sites as the labour work force may have migrated back to their respective home states. Further, there is disturbed supply chain in obtaining construction materials as the same has been disrupted. The RBI having recognized the same has allowed all banks to provide a 3 (three) months moratorium period for fixed term loans and EMI payments.
The Maharashtra Real Estate Regulatory Authority ("Authority") has issued an Order No.13/2020 on 2nd April, 2020 announcing the revision of real estate project registration, validity and extended the timeline for statutory compliances in view of the pandemic , the lockdown and its impact to ensure the compliance of obligations cast upon the promoters, allottees and the real estate agents.

The Order states that all the MahaRERA Registered Projects where completion date, revised completion date or extended completion date expires on or after 15th March, 2020, the period of validity thereof for registration of such projects shall be extended by 3 (three) months. The Authority has taken into consideration the reasons set out in the provisions of Section 5, 6, 7(3) of the Real Estate (Regulation and Development) Act, 2016 ("Act") or Rule 4(2) of the Maharashtra Real Estate (Regulation and Development) (Registration of Real Estate Projects, Registration of Real Estate Agents, Rates of Interest and Disclosure on Website) Rules, 2017 to be read with Section 34(f) of the Act. The aforesaid provisions deal with the grant of registration, extension of registration and revocation of registration of the real estate projects.


You can claim the compensation (interest) for the mental and physical agony you are facing. I have issued legal notices to such builders in some cases under my signature and the issue is settled. All legal action can only be taken once notice has been served upon the entity or individual you wish to take to court. It is only this process that legalises bringing a matter to court. The intimation sent is known as a legal notice. A legal notice is, therefore, a formal communication to a person or an entity, informing the other party of your intention to undertake legal proceedings against them. This notice, when sent, conveys your intention before the legal proceedings and thus, makes the party aware of your grievance. Many times, a legal notice served will bring the other party on heels, and the problem can get resolved out of court too, with fruitful discussions on both sides. And, if the other party is still not heeding to the grievance, one can always start the court proceedings after a particular interval, as stated by the law. Although a legal notice can serve as a purpose of negotiations between the parties and save time, effort and money that are usually spent in court cases.

You may contact my secretary to connect with me for clarification.
I hope you and your family are safe and healthy. Stay home and be safe during Covid-19.

Gopal Verma,
Advocate-on-Record & Amicus Curiae,
Supreme Court of India

Shri Gopal Verma
Advocate, New Delhi
362 Answers
9 Consultations

4.0 on 5.0

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