Refund of amount from builder
I booked a commercial office space with a particular builder in 2007 and paid an initial deposit of 15 %.
In 2008, another deposit of 15% was made. In papers, it was a CONSTRUCTION LINK PAYMENT PLAN. Date of completion: Aug.2010. Allotment letter was issued in 2008.
No builder buyer agreement was signed. Till 2011, construction was going at very very slow.pace. No demands were made. In 2013, we were told that the area was increased by 30 % owing to some change in floor plans.
In protest to slow pace of construction and oral denial of builder time and again to refund amount, we stopped making payments. interestingly, the builder also didn't make any demands for money, no interest letters on late payments etc. Just casual reminder in 2014 to deposit balance amount so that builder buyer agreement can be finalised.
Now, still it seems the project will be completed by late 2016.
Can I seek refund with interest from the developer or not? If yes, interest will be calculated from which date?
Asked in Property Law from faridabad, Haryana
1. It happens almost with all builders in India and hence there is nothing unusual in it.
2. That does not , however, mean that you have no legal recourse.
3. For this you have to file case in consumer forum where you can claim for refund of the money and also compensation for delay out of it.
1) What were terms and conditions of booking ?
2) if builder failed to complete project in time you could have cancelled agreement and sought refund
3) now that you have waited eight years better pay balance amount and enter into regd agreement with builder for purchase of shop
4) take possession of the shop
5) you have only paid 30 per cent of amount . However if You can if you desire cancel agreement and seek refund of money as per terms of your agreement
Can I seek Interest on my 30 % deposit owing to loss of interest in possession of property due to extraordinary delay
Asked 2 years ago
First of all you should get the deposit amount in full without any deduction hen only you can even think of the interest portion.
However there is no legal infirmity if you demand the interest on the deposit while refunding it and it can be from the date of deposit till the date of final payment.
1. To seek refund you have to act in accordance with the law. You qualify to seek refund if you have not violated the agreement or the clauses mentioned on the booking form.
2. If the builder did not show expediency in construction you ought to have issued a lawyer's notice to cancel the agreement and then stopped making further payments, which you did not.
3. To seek refund you have to issue a legal notice for cancellation to the builder. If he does not refund on his own after notice you can sue him to recover the amount paid to him with interest which will be calculated from the date on which you issue the notice to him.
1) the terms of agreement are sacrosanct . when you had made booking the builder must have mentioned the terms of the booking of the flat in writing
2)you have not disclosed the said terms and conditions mentioned in the allotment letter
3) any advice given to you without going through the case papers would not be in your interest
4) if your agreement with builder provides for payment of interest you can definitely claim interest when you cancel the agreement
In a landmark ruling, the National Consumer Disputes Redressal Commission (NCDRC) on Monday asked real estate major Unitech to pay buyers compensation at the rate of 12% per annum for delay in delivery of flats, overruling the builder-buyer agreement that had set the rate at 1.8% per annum.
The order came in a case filed by 24 buyers of a housing project, Vistas, in Sector 70 of Gurgaon. The buyers alleged that they had booked the flats in 2009-10 and delivery was promised in 36 months.
In his order, Justice V K Jain directed the company to pay compensation at the rate of 12% per annum on the amount paid for the period from the date of delivery originally promised to the new date. The new delivery dates promised by the company are between February 2016 and February 2018.
The NCDRC had said any unfair trade practice can be challenged by it, even if there is a prior agreement between the parties. "When the buyer is made to pay 18% penalty for default, is it fair on the developer's part to pay a mere 1.8%?"
he Supreme Court in Lucknow Development Authority vs. M.K. Gupta [Dated 05.11.1993, reported as AIR 1994 SC 787 = 1994 SCC (1) 243]
when there is a delay in delivering the possession of a property i.e. beyond the stipulated period, the delay so caused also amounts to denial of service. Such disputes or claims fall under the category of deficiency in rendering of service of particular standard, quality or grade, as defined in Section 2(r) (ii) as unfair trade practice.
The consumer is entitled to claim and empowers the Commission to redress any injustice done to him and accordingly to award not only value of the goods or services but also to compensate a consumer for injustice suffered by him.
You can refund of booking money with 9% interest, failing which you can file a case in Consumer Forum by claiming refund of money with interest, compensation for mental agony and also litigation cost.
Yes, you can seek interest on your deposit money as well.
Hi, file a consumer complaint against the builder and ask him to refund of the amount as he has not deliver the possession in time.
1. You bcan certainly ask for the refund of the entire amount paid by you with interest and damage caused to you,
2. The interest will be charged from the date of payment of each installments,
3. You can seek interest at highest banking rate of lending and also for damage caused to you for the said delay.
1. You should charge the highest percentage of interest Banks charge while mlending money to private borrowers,
2. 20% will be too high which neither he will pay nor the Court will direct him to pay at hat rate,
3. You claim damage seperately caused to you for the said delay.