• Is the builder liable to forfeit my booking amount

I have booked a property worth 2 crore in 2017 and paid the builder 120 lakh which is 60 percent of the total value. Property is in Gurgaon , Haryana. Builder is sending me the cancellation notice as I don't have enough funds to pay.Builder gave me the allotment letter in 2017 but never executed the builder buyer agreement since 3 years. My simple question is -- Can the builder forfeit 10 percent(20 lakhs) of the total value(2 crores) when he has not registered the BBA? What are my rights in this case to prevent my loss when I did not sign any BBA with the builder neither did he execute the BBA and what should I do to protect my rights as a buyer.
Asked 2 months ago in Property Law
Religion: Hindu

First answer received in 10 minutes.

Lawyers are available now to answer your questions.

16 Answers

Since 60 per cent of money was paid by you builder should have executed registered builder buyer agreement 

 

2) in your reply to legal notice take the plea that you did not make balance payment as builder failed to execute registered builder buyer agreement 

 

3) complain against builder before RERA and seek orders to direct builder to execute builder buyer agreement and to set aside cancellation notice 

Ajay Sethi
Advocate, Mumbai
82096 Answers
5157 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.

Mohammed Shahzad
Advocate, Delhi
6719 Answers
71 Consultations

5.0 on 5.0

In the absence of bba nothing can be deducted from the advance paid by buyer on cancellation of sale. There is no agreement  to be cancelled only sale is cancelled. Builder has no basis for any deduction in the absence of agreement. Not only the agreement but in the agreement there has to be specific  clause to that effect laying down the modalities of deduction .

Ravi Shinde
Advocate, Hyderabad
797 Answers
7 Consultations

5.0 on 5.0

sir

builders are being bounded by various laws these days and they are on slippery footing. you can easily save your money but i will still suggest you to find faults in their conduct. in 2017 RERA law was implemented so check if they have complied with RERA norms or not. if they are defaulting at any point then it will be easy to save money. share your documents with a lawyer so that the proper advice may be given to you. since they have not executed BBA therefore you have very good chances of saving your hard earned money.

good luck.

Gopender
Advocate, New Delhi
366 Answers

4.9 on 5.0

  If the builder do not possess any substantial documentary evidence to prove that he has rights to deduct 10% of the booking amount on the cancellation of the booking, his act may be considered as an illegal act, you can initiate appropriate legal action to recover the amount deducted 

T Kalaiselvan
Advocate, Vellore
72170 Answers
1078 Consultations

5.0 on 5.0

1. Even if there is a breach of agreement then also the builder can not forfeit the exorbitant amount.

2. Since the builder wants to cancel the agreement on pretext of delay in payment file a case beofre the consumer forum immediately and seek injunction as well.

3. So do this asap.

Devajyoti Barman
Advocate, Kolkata
22341 Answers
343 Consultations

5.0 on 5.0

File case against builder before RERA 

 

2) it should take 2 years or so for obtaining results from RERA 

 

3) amicable settlement is best option 

Ajay Sethi
Advocate, Mumbai
82096 Answers
5157 Consultations

5.0 on 5.0

What are the terms of the allotment letter?

Are any terms stated in the allotment letter?

Those terms will be binding on you in absence of a registered BBA

Yusuf Rampurawala
Advocate, Mumbai
6157 Answers
50 Consultations

5.0 on 5.0

1. You should be aware that it will certainly take long time for disposal of the litigation before any legal forum. 

If you cannot wait then you may have to compromise for lesser amount. 

2. See the above answer. 

3. You can decide based on your necessity and seriousness. 

T Kalaiselvan
Advocate, Vellore
72170 Answers
1078 Consultations

5.0 on 5.0

Sir

No one can give any guarantee to get your money back but you have to start the process from available options. 

I've filed a case in rera for refund in January 2021 and in February there was first hearing in haryana rera. Now the matter has been adjourned for final hearing. In April.. so there is no faster option available. However you have option of going to consumer court also. 

You can go to civil court also having faster provisions but it will require 1% court fee also besides our fee. 

I will suggest you to start as soon as possible. You must start with RERA, as it takes least time.

Good luck

GMGupta Advocate

D-674/2000

Gopender
Advocate, New Delhi
366 Answers

4.9 on 5.0

Consumer forum is always preferable then RERA.

If you file case before the RERA or Consumer Forum then only you will get your money back. 

 

Devajyoti Barman
Advocate, Kolkata
22341 Answers
343 Consultations

5.0 on 5.0

1. You should file compliant before Consumer court , as i mentioned above in details.

2. Consumer court will take short time .

3. Without filing case , builder will not refund promptly, and without deduction . 

Mohammed Shahzad
Advocate, Delhi
6719 Answers
71 Consultations

5.0 on 5.0

He cannot forfeit such a huge amount. That is illegal. He hasn't even executed the BB agreement. That is ridiculous. How could you give him such a huge amount  without setting up terms and conditions.

Rahul Mishra
Advocate, Lucknow
12251 Answers
29 Consultations

5.0 on 5.0

File a case in RERA TRIBUNAL immediately.

Rahul Mishra
Advocate, Lucknow
12251 Answers
29 Consultations

5.0 on 5.0

Dear sir,

you can send the builder a legal notice for the recovery of the amount. in case he ignores your legal notice, you can file a case for the recovery of the amount. The litigation process takes time but if you abide by the law, prove all your points, provide enough evidence to support your views, you are likely to get compensated and amount back.

 

  • For more assistance, you can book a consultation with me.

 

Anik Miu
Advocate, Bangalore
1125 Answers
10 Consultations

5.0 on 5.0

Hi, the appropriate forum where we can seek relief is the consumer court and RERA ..RERA is a fast trial court where decesion of the case is made within six months ,unlikely with consumer court where litigation takes more time ...Talking about RERA ,since we do not have funds to continue with the project ,the builder can cancel your unit on account of non-payment ,even if the builder -buyer agreement is not there ( Rera provisions will prevail in such scenario....However,you can seek cancellation of your unit , where the builder has to refund your remaining amount after deduction of 10 percent ( not 20 )  from the total sale consideration of the unit ...Let me know for further assistance..Thank you 

Hemant Chaudhary
Advocate, Gurgaon
4605 Answers
48 Consultations

4.9 on 5.0

Ask a Lawyer

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