• Refund of appln money 1 & 2 paid to builders on booking of flat..

I had booked a flat with one of the top rated builders in Mumbai and had paid Application Money 1 towards booking of Rs.1,08,000/- and Application money 2 was due to be paid to them after 21 days which was also paid by me through cheque Rs.13232009/-.  As per their terms they will be allotting the flat only after payment of the Application Money 3.  Meanwhile, on visiting the flat after payment of Application Money 2, On the first visit I had noticed the leakage and complained to them for which I was informed that they will repair the leakage prior to giving possession.  In my next visit I noticed that the leakage had become profuse and decided to cancel the booking and asked for refund of the money.  Meanwhile, deviating from their normal of allotment which is done only after receipt of the Application Money 3, they allotted the flat.  I found that the stamp duty calculated in the computation of the flat was initially @ 5% and in the allotment it was shown as 6% being in Thane jurisdiction.  I objected to this since this was exceeding the total cost for which I had agreed while booking for which I was explained that it was a mistake and the actual stamp duty is 6% and not 5% hence I will have to pay.  Then I reconfirmed my cancellation of the booking and demanded the entire payment made to them owing to breach of trust.  Now, they are saying that they have addressed to all my problems regarding leakage and also reduced the additional stamp duty from the total cost of the flat but are forcing me to continue.  I do not wish to continue due to breach of trust by the builders.  Do I have legal rights to cancel and get the full refund since I don't want to buy a leakage flat and have lost confidence in their approach due to breach of trust in stamp duty and am also scared that they will slap further charges unknown to me as of now. Please advise.  R G KRISHNAN, rgkrishnan@rediffmail.com 06.05.2014
Asked 2 years ago in Property Law from Mumbai, Maharashtra
1) since they have reduced additional  stamp duty paid and have addressed leakage problems take possession of flat from builder . 

2) builders dont refund money easily . it is long drawn process . 

3) if builder refuses to refund move consumer forum for necessary reliefs
Ajay Sethi
Advocate, Mumbai
23118 Answers
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Hi!
The stamp duty has to be charged @ 6% as per the recent rules by the Govt. You can initiate a suit in consumer court for deficiency of service against the builder. First serve him a legal notice regarding this. It's very difficult to get money from the builder.
Rajni Sinha
Advocate, Mumbai
273 Answers
25 Consultations
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before you make any payment it is your duty to survey flat . if flat is sold by reputed builder they will rectify leakages
Ajay Sethi
Advocate, Mumbai
23118 Answers
1214 Consultations
5.0 on 5.0
we have advised you at length . it is your call now . accept the flat  after rectification of leakages  or fight for refund .
Ajay Sethi
Advocate, Mumbai
23118 Answers
1214 Consultations
5.0 on 5.0

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