File complaint against builder before RERA and seek orders to direct builder to refund your money with interest
Refund of booking amount by cancellation of flat booked under subvention scheme
I have booked flat in September 2018 under subvention scheme and paid above 485000 amount to the builder as 9% amount of flat cost. Yet i have not made any agreement and registration of that property . Due to loss in business of my wife and existing loan obligation i am not able to purchase this flat. As i am salaried person and holding few loan obligation will not able to get more loan to purchase this property hence i inform builder to cancel my booking and return my amount which i made while purchasing this flat. but now builder is replying me stating that the amount which i have paid will get forfeited. As per Maharera appellate judgement given on 29th June builder can not forfeit the booking amount if buyer wanted to cancel the booking. Please advise what should i do to get my money back. Still the building is under construction. I have given my cancellation request to builder on 3 March 2020.
Asked 5 years ago in Property Law
Religion: Hindu
14 Answers
If cancellation is without builder fault than builder can forfeit booking amount. Sub vention scheme is banned by govt. Builder cannot continue this scheme. Use this reason and some other reasons which impose fault at builder end to claim full refund with interest.
Please approach MAHA RERA authority with an application and details of payment for refund of your 9 % booking amount. Serve the notice and copy of application upon the builder by WhatsApp and E mail which is allowed by recent ruling of Supreme Court of India.
The Rera authority would pass an order after hearing both the parties at length.
You may get back your 9% advance booking amount by the order of MAHARERA AUTHORITY.
1. Based on the RERA Appellate judgment, you may file complaint against Builder before local RERA office, seeking relief by way of full refund of booking amount and interest thereon, by giving proper justification for cancelling the booking. You too are entitled to the same relief, more so specifically since relief on same causes cannot be denied or discriminated.
1. Even before the Maharera decision it was wells settled that whole of the booking amount even on cancellation of the sale agreement the developer can not be forfeited.
2. So apart from RERA you can file case before the consumer forum as well wherein you would get full refund with interest along with damages and compensation.
You can make complaint in the RERA and Consumer Forum office.
- 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.
- Since, there is not agreement registered , then the said builder is bond to return your entire paid amount.
- 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.
Actually builder can forfeit the booking amount will the cancellation is due buyers fault and no fault of builder then only booking amount will be forfeited and balance returned
Send him a legal notice and than file a specific performance suit against him for getting the required amount
You may go for cancellation of the same on the ground that the builder is not giving the possession of the flat as per the agreed terms and conditions. If in your purchase agreement cancellation clause is written then you can cancel the flat as per that condition.
If the builder is not cooperating then you can approach RERA.
As per the new RERA rule, if you cancel such a booking, builders will have to return your money within 45 days. If they don't pay back, you can file a money suit claiming the rest amount along with compensation.
Builders will have to refund GST paid by home buyers in case he cancels the flat booked in the last fiscal and will be allowed to avail credit adjustment for such refunds
Definitely you can recover your money back with interest from the builder from the date of your payment till realization. As a first step you need to issue him a legal notice through your advocate and thereafter it is advised to approach the consumer forum for claiming compensation.
you can file recovery suit against the builder and also file complaint against him in RERA Act.
A complaint for refund of money must be lodged against the builder in the RERA tribunal immediately. The RERA tribunal will pass an order.
Dear Sir/Madam,
It is suggested that you are suggested to serve a legal notice and then file the case.
You should file suit against builder for cancellation of booking and refund of money paid as advance along with interest and legal fees.
