Don’t cancel your booking
if you cancel booking builder will seek to forfeit the booking amount paid by you
litigation is long drawn and expensive proposition
even if you go to court you may not get any relief
Builder is not ready to refund initial booking amount even though agreement is not done
I booked an apartment with one top reputed builder in Bangalore in Jan2020. It's been 6 months that I had paid them booking amount of 8 lacs which is 10% of agreement value of flat but still I have not received agreement till date. I paid them 10% in two installments, second week of Jan and rest amount on 23rd Jan for which I have receipts with me. I received my allotment letter in first week of Feb. I dropped them an email in month of Feb(last week) about agreement and they said I will get agreement within 7-10 days which implies agreement should have been delivered in first or second week of March which has not happened till date. Today situation is not same because of pandemic. I am fearing a job loss. My father passed away last year and my mother also had to resign her private job in March end this year as she shifted with me. I am the only bread winner in house. I am not in a state where I would be able to commit further finances. I dropped an email to builder requesting that after careful consideration I would like to cancel my allotment and kindly please help with refund. They have sent me an email showing the clause in allotment paper where I had signed. (My mistake, I did not read that application letter, rather I should say sales people only filled in the form and took my signature without letting me read the application paper cleverly). Clause says that if I would have cancelled in first 30 days then 1 lac deduction, within 60 days 2 lac deduction and after 60 days whole amount is forfeited. I am fine if they would have taken 10 to 20% from 8 lacs but they are not ready to give any money back on cancellation. I went back and read the application letter again. I did not find any clause in application letter where if builder fails to send agreement on time, builder should be liable. (Though it could have hampered me as I planned to take home load and rates kept changing in between.) There was another clause in form which builder did not send me on email but I read it later. That says buyer should enter in definitive agreement within 60 days from allotment date(which is first week of feb), else the allotment will be deemed as cancelled without any further notice unless builder agrees to extend timelines. I would like to withdraw my candidature but I am not sure what to do. I am fine to take loss of 10 to 20% on 8 lacs but considering whole amount will be forfeited, does not give me a peaceful sleep. Please help with your advice.
Asked 4 years ago in Property Law
Religion: Hindu
17 Answers
1. Whether a sale agreement is made or not the agreement for sale on payment of money and in receipt of allotment letter does not come to an end.
2. So the default clause has no basis in the eye of law.
3. Now even though the initial booking is cancelled by any of the parties for whatsoever reason the builder can not forfeit the sole amount.
4. So forget the clauses and claim your money .
5. If it is rejected then file case before the consumer forum.
You can make a written complaint against builder in RERA office of your city and online in Consumer forum. And can take refund money with interest from Builder.
If there is no such application clause at the time of the purchasing the flat then builder can't deduct the 10% amount as well. check the sale brochure of the builder.
- 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 made 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 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.
- Further , if you cancel the booking due to the fault of builder , then builder is bound to refund the entire amount with 10 percent interest.
- If, builder not refunding the same ,then you should lodge your complaint before the Consumer court , and thereby prayed for the refund of paid amount with interest.
This is fraud and criminal breach of trust. You should file a complaint against the builder in the RERA tribunal immediately. Also file a criminal complaint.
1. Since you have not signed the agreement, that means you have not entered into a contract with the builder.
2. Send a legal notice to the builder to return your advance amount of Rs. 8 Lakhs or little less, as you have not yet executed the agreement and there's uncertainty due to Covid19.
3. Also, you can complain against the builder to RERA to get back your money.
Send a legal notice to the concerned builder and seek full refund of your booking amount.
The condition(S) pertaining to forfeiture Of booking amount are totally lopsided and will surely be read down by the court, it all this matter goes to the court.
Get issued a legal notice to the builder through a lawyer
Contact a local lawyer, send a legal notice stating that since you have failed to send the agreement within 60 days of allotment, the allotment stand cancelled. Kindly refund my money with interest within 15 days failing which I shall be compelled to initiate legal action. After 15 days file a complaint with the District Consumer Forum with a relief for refund of allotment money with interest plus compensation for mental agony and litigation charges. In this way, you would be able to recover your money.
Go ahead. Good luck.
Serve him with a legal notice and than file a complaint against the builder in the consumer court
You send a legal notice through your lawyer to the builder communicating your decision to cancel the booking owing to the failure on the part of the builder to execute the sale agreement despite many requests made by you in this regard even after paying the requisite 10% of sale consideration amount which was criteria for entering into an agreeent of sale.
You can demand refund of booking amount with interest from the date of booking til the date of settlement.
You can also mention that if he fails to respond or comply with the demand made, he may have to face legal consequences through RERA or consumer forum.
For your information the conditions so written in the allotment letter is one sided agreement in favor of the builder hence it is not maintainable in law.
One-Sided Clauses in Builder-Buyer Agreement is Unfair Trade Practice- Supreme Court;
In a remarkable judgment, the Supreme Court has recently held that one-sided clauses in the Apartment Buyer’s Agreement constitutes unfair trade practice and such terms cannot bind the flat-purchaser.
Case name: Pioneer Urban Land & Infrastructure Ltd. v. Govindan Raghavan
You can fight the consumer case against the builder based on the above judgment.
You can cancel the same and get the refund. If it's your fault then only booking amount will be forfeited
File a case in the consumer forum.
1. Builder is bound to refund the amount in entirety if there is no agreement or the booking form does not contain a forfeiture clause.
2. The practice of first paying the advance to the builder and then executing the ATS later is flawed and designed to doom the buyers. The buyers should insist that ATS is executed the moment advance is paid.
3. Since the clause of forfeiture is a part of the allotment letter the builder can invoke it.
4. Always read the fine print.
Dear Sir,
The following information is exhaustive in nature
How To Register a Complaint Against Housing Society/Any other Trust/ Professionals/Builder as defined below.
==================================================================
https://www.icrpc.org/icrpc.org.contact.htm
International Consumer Rights Protection Council
Consumer Court entertains consumer complaints against defective product or service. Bima Lokpal, Lok Ayukt, Lok Adalat are also places where complaints can be filed.
If you want to file complaint against builder, insurance company, housing society, bank, educational institute, hospital, doctor, railways, municipality, airlines, transport, school, college, manufacturer, dealer, etc. you can file your complaint here on this website. The process is very simple.
==============================================================================
Living in a housing society is akin to being in a committed relationship, except it gets murkier when things go awry as they sometimes do. We’ve all been in catch 22 situations where if a problem persists, we are damned if we try to solve it and damned if we don’t. After all, it is better to resolve a conflict or dispute peacefully in a way that is acceptable to both parties. If however, the society has been functioning to the detriment of its members, causing unbearable inconvenience, they have the power to right the wrong. Luckily, there are laws that guard you against real and present danger (and even inconvenience) posed to you by incompetent, ruthless or negligent committee members. This post covers the different problems that may arise for members in a housing society and various ways for redressal.
Complaints that can be raised in General Body Meeting:
- Issues related to maintenance of the property
- Not displaying society’s name board
- Not allowing members access to common spaces
- Charging excessive fines, maintenance, other dues
- Failure to insure the property
How to submit a complaint to the Managing Committee?
The member should submit a written complaint explaining the dispute/complaint in full detail to any office-bearer of the society.
In the next committee (after the complaint is received), the Managing Committee reviews the complaint, takes a decision and communicates it to the member within 15 days.
If the members do not receive any communication from the Committee within 15 days, they can approach any competent authorities for redressal of their complaints. A copy of the original complaint letter should also be attached to the escalation complaint.
In cases that are not so cut and dried and require extensive study of legal loopholes and workarounds, members should think about hiring an experienced lawyer (preferably specialising in real estate laws) who can bear the load and present a winning case. As such, housing societies have their own legal advisor/consultant or lawyer who does a good enough job of defending it if trouble befalls. Members who want to present a solid case with all legal intricacies and technicalities covered in a complex situation, should be better off with legal counsel.
Below is a classification of complaints and the competent authority for members to approach.
Administrative and financial mismanagement complaints and disputes that fall under the purview of the Registrar:-
- Non-issuance of share certificates
- Refusal of membership
- Exorbitant premium demand
- Refusal to produce account books and registers for inspection/ tampering or destruction of records
- Incomplete or falsified maintenance records
- Failure to prepare audit reports/ audit rectification reports/ annual reports
- Corruption and misappropriation of funds
- Investing funds without prior approval of members
- Inappropriate/false non-occupancy charges
- Failure to conduct election on time
- Appointing defaulting members on committee
- Rejection of nomination
- Failure to conduct annual, special or general body meetings wilfully
- Failure to file returns, statements or mismanagement of bank records/documents
Disputes pertaining to repair, construction and amenities should be appealed to Co-operative Court/Municipal Corporation or Local Authority:-
- Major and minor repairs, leakages
- Parking issues, disputes with allotment of residence
- Managing Committee resolutions
- Disputes with election of managing committee (except nomination refusal)
- High construction cost, disputes with appointment of architect or redeveloper
- Water supply issues and high maintenance/recovery
If you are facing harassment from the committee members, including but not limited to rude/impolite behavior on a consistent basis, verbal or physical threats or assaults, you must immediately approach the local police station and file an FIR. After receiving a police NC (non-cognizable), you can approach the Civil Court for further redressal.
Complaint against Co-op Housing Society
To file a consumer complaint against a co-operative housing society send your complaint to the registrar of co-op housing society:
Registrar
Co-operative Housing Societies Federation Ltd.
Address of the office where your society is registered
City name
Complaint to Registrar is to be made on the matters of:
1) Registration of society on misrepresentation
2) Non occupancy charges
3) Non supply of copies of record and documents
4) Non maintenance or incomplete maintenance of records and books
5) Misappropriation of funds
6) Investment of funds without prior permission
7) Audit
8) Non conducting of election before expiry of the term of committee
9) Non calling of General Body Meeting
10) Resignation of committee
Complaint in Co-operative court is to be made on the matters of:
1) Repairs, internal repairs, leakages.
2) Parking
3) Escalation of construction cost
4) Unequal water supply
5) Excess recovery of dues from members
Complaint to Police is to be made on the matters of:
1) Nuisance carried out by unauthorized use of flat / shop / parking space / open space by member or builder.
2) Threatening / assault by or to the member of society
3) Creating noise after prescribed deadline hour in the evening
Complaint to General Body is to be made on the matters of:
1) Non maintenance of property by managing committee
2) Levy of excess fine
3) Not allowing authenticated use of the available open space of the society by managing committee
Please Note: If your grievance is not redressed, you can contact the Commissioner of the Co-operative Housing Societies Federation Ltd,. located in your State.
=================================================================
Builder can forfeit 10% of total amount if cancellation is without builder fault. This is law.
Ground of cancellation shall be failure of builder to execute agreement within 60 days. One side building contract is not valid and builder is equally liable to execute agreement with in 60 days otherwise deemed cancellation.
So contract is already cancelled due to builder fault, so you can demand full refund with interest. Withdraw previous request and send legal notice for refund with interest, failure to which you shall be constrain to file FIR agasint him and RERA/consumer complaint and insolvency proceeding.
issue a legal demand notice to the builder through an advocate and if builder did not pay the amount with in stipulated days as mentioned in your notice, you have to file a suit for recovery against the builder. You can also approach to consumer court.
1. You should hire an advocate and send a legal notice for refund of complete amount with in 15 days of recieving the legal Notice in ground that agreement was never signed by you.
2. If builder refuse to refund the amount then file suit against builder for cancellation of flat allotment and refund of complete amount along with interest.
3. The suit can be filed before RERA or consumer forum as per your convenience.
