• Allotment letter and booking form

Booking of a flat in Mumbai was done last year in September 2021. And it mentioned, if we cancel, they will forfeit all 10% amount paid. This booking form was signed by buyer, but there is no sign of builder and neither it is on official builder letter head. We assumed if we cancel, but registration is not done, we get the money back and on their verbal assurance we signed booking form and now they are just refunding 5% of cost of said unit. They did not send us allotment letter last year and also did not send us latest proforma allotment letter order 31 as given by maharera which said only 2% of cost of said unit will be deducted. 
Builder said, new allotment letter does not apply to old booking made last year in sep 2021 and is not ready to give us new proforma allotment letter. Rather builder gave us back dated (oct 2021)provisional allotment letter ( now in sep 2022 ) in which builder said only booking form rules will be applied.
Question: Is new proforma allotment letter order 31 also applied to booking made in last year sep 2021 but registration not done yet? OR it is only for new booking after July 2022? Should we receive new proforma allotment letter order 31 from builder?
What is the legal source which we can read and where in clause it's written?
How can we get back our full 10% refund? Please help.
Asked 2 years ago in Property Law
Religion: Hindu

First answer received in 10 minutes.

Lawyers are available now to answer your questions.

12 Answers

Inform the builder in writing that no allotment letter was received by yiu 

 

2) that in September 2022 you have received back dared allotment letter 

 

3) request builder to refund your full booking amount as per verbal assistances given 

 

4) chances of getting full refund are bleak 

Ajay Sethi
Advocate, Mumbai
95168 Answers
7604 Consultations

5.0 on 5.0

You can go go rera and seek full refund. 

Prashant Nayak
Advocate, Mumbai
32146 Answers
184 Consultations

4.1 on 5.0

You are entitled to refund of booking amount as per RERA rules.

If the builder is refusing to return the same as per the latest law especially if he is trying to manipulate the iossue by handing over old format, you can drag the builder to the consumer forum and seek necessary relief alternately you can approach RERA too for the same relief. 

T Kalaiselvan
Advocate, Vellore
85369 Answers
2231 Consultations

5.0 on 5.0

Hi, as per RERA norms earnest money or 10 percent of the total sale consideration amount shall be forfeited if the allottee intends to withdraw..However ,if there is default from the developer side entire money has to be refunded along with interest and compensation 

Hemant Chaudhary
Advocate, Gurgaon
4630 Answers
67 Consultations

4.9 on 5.0

the Maharera order no.30 prescribing the model form of the allotment letter came into force on 30.6.22

the said order no.30 states as below:

Promoters shall henceforth upload the allotment letter, as at Annexure '1' hereto or
the amended form of the allotment letter as mentioned at (b) above when applying
for registration of a real estate proiect.

 

the use of the word 'henceforth' in the order no.30 shows that it is prospective in nature, i.e. it would not apply to bookings made prior to 30.6.22

 

your booking was done in September 2021

so i am afraid if you can avail the benefit of the above order no.30

 

on one hand you are seeking cancellation of your booking and on the other hand you are asking for the allotment letter? how can both stand together?

so the refund of your money will be governed by the terms stated in your booking form 

also plz note that the proforma allotment letter as per order no.30 will apply only if the deposit/advance paid to the builder is not more than 10% of the total sale price

you have not informed how much did you pay to the builder? if you paid more than 10% then the proforma allotment letter would not apply and even otherwise it cannot apply since your booking date is prior to the date of coming into effect of the order no.30 i.e. on 30.6.22

 

Yusuf Rampurawala
Advocate, Mumbai
7553 Answers
79 Consultations

5.0 on 5.0

Dear Client,

Government of India has enacted the Real Estate (Regulation and Development) Act,2016.(the Act) and all sections of the Act have come into force with effect from 01.05.2017.

The Government of Maharashtra vide Notification No.23 dated 08.03.2017 has established the Maharashtra Real Estate Regulatory Authority, hereinafter referred to as "MahaRERA" or as "the Authoritv".

The Table in Clause 9 of the allotment letter prescribes the minimum period (number of days) within which the booking can be cancelled and the upper limit of the percentage of the amount to be deducted in case the allottee desires to cancel the booking.

 

Thank You.

Anik Miu
Advocate, Bangalore
9169 Answers
111 Consultations

4.7 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 , 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
13513 Answers
201 Consultations

5.0 on 5.0

In August 2022, MahaRERA issued an order prescribing the number of days and amount that can be deducted in case of cancellation of a booking. According to the order, no amount can be deducted for cancellation within 15 days of booking, 1 percent of the cost of the unit for cancellation between 16 days and 30 days, 1.5 percent between 31 days and 60 days and 2 percent after 61 days.

 

2) MahaRERA has further legislated contractual terms between the parties wherein the allottee (home buyer) will only be penalised up to 2 percent of the consideration in case of default by allottee as well.

 

 

Ajay Sethi
Advocate, Mumbai
95168 Answers
7604 Consultations

5.0 on 5.0

Yes as per rera new ruling they have to return the full refund

Prashant Nayak
Advocate, Mumbai
32146 Answers
184 Consultations

4.1 on 5.0

The builder has to upload the allotment letter or the amended form of the allotment letter as mentioned.

The proforma of the allotment letter proposed to be signed by the promoters with the allottees shall be in accordance with model allotment letter as approved by the Authority.

If no allotment letter has been uploaded until the date of the claim made, then as per order 31 of the order the builder is liable to refund the booking amount.  

You can find the details in the Maharera website for more understanding. 

T Kalaiselvan
Advocate, Vellore
85369 Answers
2231 Consultations

5.0 on 5.0

1. the contract between the parties regarding the quantum of refund at the time of cancellation by the purchaser, will hold the field. there is nothing about this in the Maharera. it is the contract that will decide what is to be done. in this case it would be the booking form or allotment letter issued to you which would constitute the contract and the terms of that contract regarding refund on cancellation will apply 

2. this is already answered before!! please read the responses carefully 

Yusuf Rampurawala
Advocate, Mumbai
7553 Answers
79 Consultations

5.0 on 5.0

Dear Client,

Without agreement to sell, builder can accept upto 10% amount and if you will cancel booking without builder fault, builder is entitle to forfeit booking amount.

The builder is liable to pay you the entire amount if the agreement is not registered.

Legally, the developer 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.

The buyer will have to move the state real estate regulatory authority or the consumer forum to seek relief, in case the developer refuses to pay the booking amount.

For example, the clause in the sample format of the agreement of sale on the Madhya Pradesh RERA reads:

“The allottee shall have the right to cancel/withdraw his allotment in the project as provided in the Act: provided that where the allottee proposes to cancel/withdraw from the project without any fault of the promoter, the promoter herein is entitled to forfeit the booking amount paid for the allotment. The balance amount of money paid by the allottee shall be returned by the promoter to the allottee within 60 days of such cancellation.”

If a builder is not following the RERA rules, the buyers will have the right to file a complaint against them.

 

Thank You.

 

 

 

Anik Miu
Advocate, Bangalore
9169 Answers
111 Consultations

4.7 on 5.0

Ask a Lawyer

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