• Cancellation of booked flat

Hi, I recently booked a flat on 27th april 2015, paid 1Lakhs as a token advance , opted for bank loan, signed agreement deed - one copy - original was given to bank for home loan, xerox copy is available with builder and with us, now due to mother health problem I spent all money reserved for buying the house, so I cancelled the booking, now the builder is asking us to pay ( as per sale deed given to bank )cancellation charge of 2.5 lakhs + 24% interest of total house value ( 73 Lakhs ), please guide us wheather we have to pay the above charges - since I donot have the money,  I cannot pay the amount or how to deal this situation, please help, thanks
Asked 1 year ago in Property Law from Pondicherry, Puducherry
Religion: Hindu
1) if as per sale deed signed by you with the builder you have to pay cancellation charges then builder will seek to recover the same from you 

2) it is necessary to peruse agreement signed by you with the builder for further advice 

3) you can refuse to pay . Let builder move court to recover said amount 
Ajay Sethi
Advocate, Mumbai
23351 Answers
1221 Consultations
5.0 on 5.0
1. No, you do not have to pay such amount.
2. On the contrary cancel the agreement and ask for return of the booking amount which the builder is bound to return.
3. If the builder does not return your money you can file case before the consumer forum for the same.
Devajyoti Barman
Advocate, Kolkata
5246 Answers
54 Consultations
4.9 on 5.0
With out knowing the clauses in the agreement entered between you and the builder ,i can't provide an answer correctly. What are the liabilities and charges mention about the cancellation of booking?
Ajay N S
Advocate, Ernakulam
1916 Answers
19 Consultations
5.0 on 5.0
1. The builder is well within his right to seek the cancellation amount if the agreement provides for it. Once an agreement is signed it can be cancelled only within its periphery. Ill health of mother is not a legal ground to refuse to discharge contractual obligations.

2. If the agreement does not make you liable to pay the cancellation charges sought by the builder then you can jolly well refuse to pay the same.
Ashish Davessar
Advocate, Jaipur
18183 Answers
449 Consultations
5.0 on 5.0
Hi
 refuse to pay the amount the amount and the amount of rs.1,00,000/- will not be returned  unless you take ome steps..
Refuse to pay any further amount .
depending on the clause in the agreement you signed, if there is no clause specifying the cancellation f the deal, send him alegal notice and ask him to return the amount
Thresiamma G. Mathew
Advocate, Mumbai
1316 Answers
85 Consultations
5.0 on 5.0
1. You have already paid Rs.1 Lakh as token advance and this amount may not be returned to you since you already have signed the agreement for sale where the clause for penalty for cancellation was mentioned,

2. Do not pay the balance amount since it is abnormally high,

3. If he files any case for specific performance, fight it fittingly on the ground that the developer was in a dominating position for which he forced you to sign the said one sided agreement for sale with penalty clause of absurd amount.
Krishna Kishore Ganguly
Advocate, Kolkata
12131 Answers
233 Consultations
5.0 on 5.0
The builder is wrong and he cannot demand the said amount towards cancellation charges.  In fact it is you who should claim your Rs. 1 Lakh back after deductions if any.
Refuse the same orally if asked orally or give a reply n writing if demand was made through notice. 
You can face the case before the civil court. 
T Kalaiselvan
Advocate, Vellore
14151 Answers
127 Consultations
5.0 on 5.0

Ask a Lawyer

Get legal answers from top-rated lawyers in 1 hour. It's quick, easy, and anonymous!
Ask a Lawyer

Property Lawyers

T Kalaiselvan
Advocate, Vellore
14151 Answers
127 Consultations
5.0 on 5.0
Ajay Sethi
Advocate, Mumbai
23351 Answers
1221 Consultations
5.0 on 5.0
Ashish Davessar
Advocate, Jaipur
18183 Answers
449 Consultations
5.0 on 5.0
Krishna Kishore Ganguly
Advocate, Kolkata
12131 Answers
233 Consultations
5.0 on 5.0
Devajyoti Barman
Advocate, Kolkata
5246 Answers
54 Consultations
4.9 on 5.0
Atulay Nehra
Advocate, Noida
443 Answers
15 Consultations
4.7 on 5.0
Shivendra Pratap Singh
Advocate, Lucknow
2771 Answers
41 Consultations
4.9 on 5.0
Rajgopalan Sripathi
Advocate, Hyderabad
873 Answers
43 Consultations
5.0 on 5.0
Ajay N S
Advocate, Ernakulam
1916 Answers
19 Consultations
5.0 on 5.0
S J Mathew
Advocate, Mumbai
1953 Answers
65 Consultations
5.0 on 5.0