• Builder not refunding money

Hi, I had given advance to buy a house and before we could sign the agreement he cancelled the deal. He said he will refund in 45 working days. Would like to know what constitutes working days ?, I have been sending him emails to give me an exact date or post dated cheque to which he has not responded.
Asked 3 years ago in Property Law
Religion: Hindu

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12 Answers

Hi,it is advisable to issue him a legal demand notice to refund the amount within 15 days of receiving the notice ..If he fails to refund the amount we can file a civil suit for recovery in court 

Hemant Chaudhary
Advocate, Gurgaon
4630 Answers
67 Consultations

4.9 on 5.0

Lodge immediately a complaint of cheating and fraud with the police as well as file a case before consumer court for deficiency in service.

Koshal Kumar Vatsa
Advocate, Gurgaon
2283 Answers
3 Consultations

5.0 on 5.0

Do you have receipts of the same ? if yes then claim before the District Consumer Forum. 

Working days includes all days except public holidays and official holidays. 

Pooja Ashar
Advocate, Ahmedabad
235 Answers
4 Consultations

5.0 on 5.0


Working days means days excluding the holidays.

You can get issued a legal notice demanding him to refund the money. He should refund after the same. 

Agam Sharma
Advocate, New Delhi
617 Answers
6 Consultations

5.0 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 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. 

- 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.

- However before filing complaint , you can send a legal demand notice to the said builder . 


You can contact me for sending the legal notice in India. 

Mohammed Shahzad
Advocate, Delhi
13529 Answers
201 Consultations

5.0 on 5.0

He may not respond properly to emails. 

You write to him demanding the specific date of the return of booking amount and also demand him to issue a post dated cheque for the amount to be returned to you by the builder. 

You can send the communication by registered post so that a documentary evidence has been created in this connection. 

You will certainly get a response from the builder for this registered letter communication. 


T Kalaiselvan
Advocate, Vellore
85404 Answers
2236 Consultations

5.0 on 5.0

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

Ajay Sethi
Advocate, Mumbai
95203 Answers
7607 Consultations

5.0 on 5.0

If he is rera registered you can approach rera or consumer court. you can also file FIR against him for cheating

Prashant Nayak
Advocate, Mumbai
32148 Answers
185 Consultations

4.1 on 5.0

Serve them with a legal notice. 

Rahul Jatain
Advocate, Rohtak
5365 Answers
4 Consultations

4.8 on 5.0

Refer to the terms of sale agreement to find out the norms of cancellation of agreement. 

If its silent then his continued silence may be treated as refusal. 

In such circumstances you can file case criminal breach of trust or cheating. 

Another option is to file civil suit for recovery of money. 

Devajyoti Barman
Advocate, Kolkata
22920 Answers
498 Consultations

5.0 on 5.0

You can make online complain in the consumer forum and RERA office.

Ganesh Kadam
Advocate, Pune
12940 Answers
256 Consultations

4.9 on 5.0

you need to file a Suit for Recovery of your money alongwith the interest on amount which is to be recovered within the prescribed time otherwise there is no option left for you to forefeit your money. 

Mohammed Mujeeb
Advocate, Hyderabad
19299 Answers
32 Consultations

4.7 on 5.0

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