• Builder not refunding initial booking amount

I had approached builder in Jan, 2013 after reference from one of my friend regarding 2BHK flat in our locality. He showed me pamphlets and told that he is planning to build building on a plot. He didn't show any architectural plans but showed plot and pamphlets.

As token amount he took One lac rupees in Feb, 2013. After 15-days he called and informed that purchase of plot has been finalized and you are required to pay additional two lacs rupees, which was paid by me in two installments of one lac each. In June, 2013 he called and showed that he has started making paper work for purchasing the plot.

After that he started to delaying the commencement of work by giving excuses that certain permissions are not coming. In August, 2014 I cancelled booking and asked for refund.

In November, 2014 I visited his head-office to claim refund cheque, there his officials told me that they have not received cancellation form which you had submitted at branch office, So I filled cancellation form at head-office.

When I approached head-office of builder in December, 2014, officials informed me that proprietor has gone out of Mumbai. In January 2015 I met proprietor and he informed me that he would provide refund cheque in Feb, 2015.

In February , 2015 first week he provided refund cheque dated Feb 28, 2015 of half the booking amount and told that he would provide remaining cheque amount by March 15, 2015.

When I deposited the cheque the cheque got bounced. When we approached builder office, officials told that proprietor is not at office.

In May, 2015 as per lawyer 1 advice I again deposited cheque and sent the builder cheque bounce notice in June, 2015. In July, 2015 I approached lawyer 2 he informed that the cheque bounce notice was wrongly addressed to Proprietor instead of company.

Now what should be my approach so that I could recover my money in minimum duration of time
Asked 1 year ago in Property Law from Navi Mumbai, Maharashtra
Religion: Hindu
1) you should file complaint before consumer forum against the builder for deficiency in service and selk refund of rs 3 lakes paidby you with interest 

2) also seek compensation for mental torture undergone by you 

3) cases before consumer forum take 2 years to be disposed of 

Ajay Sethi
Advocate, Mumbai
23408 Answers
1230 Consultations
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1. If time is there then send fresh notice.
2. Alternatively file case in consumer forum where you would get speedy remedy.
Devajyoti Barman
Advocate, Kolkata
5248 Answers
54 Consultations
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1) even if agreement is not registered you can move consumer forum . You have not mentioned whether any building plans have been sanctioned or not 

2) if other purchasers have been duped you should all lodge police complaint against builder of cheating criminal breach of trust 

3) it appears builder is fly by night operator and has no intentions to complete construction and deliver possession of the flats 

4) you have to proceed both before consumer forum and also file criminal complaint against builder to recover your money 
Ajay Sethi
Advocate, Mumbai
23408 Answers
1230 Consultations
5.0 on 5.0
1. The cheque bounce noticed had to be issued to the builder and not the proprietor except if the builder was carrying his business as a sole proprietor. However, if this is not the case then it is a serious flaw which can oust your claim in the court.

2. Now the only option available to you is to file a case for recovery against him in the court.

3. The notarized agreement is as good as a registered agreement.

4. The other offences committed by him have no nexus with your legal rights as every case is special and different on the face of its own merits.
Ashish Davessar
Advocate, Jaipur
18275 Answers
451 Consultations
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Besides filing a cheating  complaint with the police against him, you may also follow up with the cheque bounce case, money recovery suit in civil court and for deficiency of services trough a consumer forum.
The cheque may have been issued on company's name but the proprietor can be held responsible for the  fraudulent acts.
T Kalaiselvan
Advocate, Vellore
14177 Answers
128 Consultations
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Yes, it is a fit case for going to consumer forum.
Devajyoti Barman
Advocate, Kolkata
5248 Answers
54 Consultations
4.9 on 5.0

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