• Builder not refunding booking amount

Hi , I booked a Property in Bangalore paid 10% as Advance 5.2 Lacs of the Total Property Cost in Mid 2021. Due to Personal Loss in my family i am unable to proceed further with the Property to purchase . Now i have asked for the Refund's [ told them take if any document Charges for the agreement ]. but they are saying as per agreement 10% wont be Refunded, which is the entire 5.2 Lacs. When i signed up, i never thought i would be in such a instance , but now that money is needed for my Family support. For the Builder its a small amount, but they are denying to Refund. How can i proceed further to retrieve the money. Kindly Help if anyone can give me a advice
Asked 6 days ago in Property Law
Religion: Hindu

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9 Answers

Builder can forfeit the advance amount paid by you in case of cancellation of booking 


you would not get refund 

Ajay Sethi
Advocate, Mumbai
85546 Answers
5730 Consultations

5.0 on 5.0

Builder has not right under law or refuse refund of such huge amount even if there a clause to that extent You can file complaint under Real Estate (Regulation and Development) Act, 2016 but that will take time.  As per the direction of Supreme Court  in a recent case, even District Consumer Forum  have power to decide dispute between buyer and builder. Under Section 88,  provisions of Real Estate (Regulation and Development) Act, 2016 are in addition to, and not in derogation of, the provisions of any other law. Issue a lawyer's notice  seeking refund of deposit with interest. After that file a complaint in District Consumer Forum  under new Consumer Protection Act, 2019 under which  proceeding are very fast. You will get refund with interest, compensation for mental harassment, cost of complaint and lawyer’s fee.

Ravi Shinde
Advocate, Hyderabad
1654 Answers
21 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 after sending a legal notice , and thereby prayed for the refund of paid amount with interest.

You can contact me , if further suggestion needed. 

Mohammed Shahzad
Advocate, Delhi
8791 Answers
94 Consultations

5.0 on 5.0

1. Send a legal notice to the builder to forthwith return your 10% advance amount.

2.  If the builder denies to refund your advance, complain to RERA, Karnataka, for recovery of your money and also file a case in the jurisdictional Court against the builder to get back your advance.

Shashidhar S. Sastry
Advocate, Bangalore
3949 Answers
237 Consultations

5.0 on 5.0

Booking amount is generally forfeited if you cancel for your own personal reasons. Only if there is a issue with builder promise you get the refund. You can try sending him legal notice and filing consumer complaint seeking refund

Prashant Nayak
Advocate, Mumbai
25386 Answers
65 Consultations

4.4 on 5.0

The builder cannot forfeit the entire booking mount.

He can deduct 10% of the booking amount only.

If there is any condition stating that he will deduct 10% of the value of the property then it is not maintainable because it is one sided agreement 

You first of all communicate your decision to cancel the booking in writing to the builder and demand refund of your booking amount after deducting the administrative charges.

If he refusing to return the amount you can drag him to consumer forum for return of your booking amount and also for compensation for the mental harassment he caused. 

T Kalaiselvan
Advocate, Vellore
75676 Answers
1313 Consultations

5.0 on 5.0

You need to lodge a written complaint against the builder with the State RERA Authority in Karnataka for appropriate redress of your grievance. Also, you may send them a legal notice demanding immediate refund.

Swaminathan Neelakantan
Advocate, Coimbatore
1498 Answers
17 Consultations

4.9 on 5.0

Dear client, 

You can send him a legal notice or approach the National Consumer Dispute redressal Commission and file a case against him. 

Thank you. 

Anik Miu
Advocate, Bangalore
3311 Answers
34 Consultations

4.9 on 5.0

At the outset on a priority basis, get a legal notice issued onto the builder for the refund of the amount within 7 days failing which mention that you will complain to the REA authorities. If he doesn't refund, then initiate consumer forum proceedings against the builder other than complaining to the RERA authorities. 

Sanjay Narayandas
Advocate, Hyderabad
92 Answers

5.0 on 5.0

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