• Cancellation of pre-launch flat in Bangalore

Dear Sir, 
I am from bangalore,  I booked a flat in one of the builders on 5th jan 2014 in bangalore,  They also issued a MOU. 

when i Booked the flat Marketing people informed me the the construction is expected start in march 2014. and they told i will be getting 12% discount if i pay 100% with in a week.  So I paid 100% (22 lacs) they created MOU as well. 
Latter when i approached specific CRM in march 2014,  they told construction will start in june,  similarly in june they told it will start in August 2014. In august they told work will start in November 2014.  I was not happy, so i asked for cancellation, they told that,  if i cancel now they will give PDC  after 90 working days with 7-8% interest. they asked me to wait for 23 months they will give 18% interest.  Till now they were unable start work (even after 23 months).
Duration clause in MOU says "  this MOU is in force for 20 months or till the end of complete transaction, which ever is earlier.  On the event of delay Second party is agreed to extend 3 more months."

As per MOU,  this time period is lapsed. but now they are say they will PDC after 90 working days only. And the interest will be calculated only till the date of cancellation.  there will not be any interest during 90 workings period.  As per them 90 working days accounts to 115 days .  Kindly provide me assistance in this regard.

Thank you,

With Best Regards,
Mahesh
mahesh223@gmail.com
Asked 1 year ago in Property Law from Bangalore, Karnataka
Religion: Hindu
Hi, First you have to issue a legal notice ask them to pay the amount with interest and if they fail to pay the amount then you have to file a complaint in the consumer forum for deficiency of service and also for repayment of the amount with interest.
Pradeep Bharathipura
Advocate, Bangalore
4105 Answers
133 Consultations
4.3 on 5.0
1) cancel the agreement as no construction has been carried out till date 


2) on cancellation collect the PDC cheques from the builder  .

3) accept the interest rate of 18%offered by builder . 

4) in the event cheques are dishonoured on presentation file cheque bouncing case and  file complaint before consumer forum and seek refund , interest , compensation from builder
Ajay Sethi
Advocate, Mumbai
23240 Answers
1219 Consultations
5.0 on 5.0
If you have signed up with M/s Dreamz Infra Ltd., then it is a bogus, sham company cheating gullible customers like you, many criminal cases have been filed against the company for cheque bounce U/s 138 of N.I.Act. My office has filed many criminal cases against them, in some cases the company has cleared the outstanding amounts after several delay but with interest and compound interest. 
Write to the company informing them that you wish to cancel the booking and seek for refund due to inadvertent delay from their side in handing over the project as was agreed to by them in the MOU.
They will issue PDC for the amount of Rs.22.00 lacs paid by you, eventually they will inform you to deposit the cheques 3 or 4 months from now, as they do not have liquid cash. collect the cheques and wait and then deposit the cheques and later on file cases so you can recover the entire amounts from them.

Kiran N. Murthy
Advocate, Bangalore
765 Answers
50 Consultations
5.0 on 5.0
1. The MOU is being misinterpreted by them. You gave them too long a rope. Either they should issue the PDC immediately on cancellation or the interest should cover the 90 day period as well in case they are to issue it after the expiry of 90 days.

2. You should issue a lawyer's notice to the builder seeking the refund of amount with compensation for delay. If the builder refuses to accede to your demand (which is most likely) then filing a lawsuit is the only remedy. 
Ashish Davessar
Advocate, Jaipur
18102 Answers
448 Consultations
5.0 on 5.0
1. File a complaint case before your local District Consumer Dispute Redressal Forum alleging deficiency in service and unfair business practice claiming immediate refund of the amount pad by you with interest, damage and cost,

2. Engage a local lawyer having expertise in handling cases before Consumer Fora.
Krishna Kishore Ganguly
Advocate, Kolkata
12112 Answers
231 Consultations
5.0 on 5.0
A. Some builders are doing these type of business in Bangalore city because of obtain money for their necessity and neither they will start construction nor handover the possession in time and refund the money. In such being, they are pondering over if the customer approached the court that the builder will pay interest amount by refunding entire amount.

B. Issue a legal notice to the builder to refund the money with an interest by 15 days from the date on notice served.

C. Thereafter, if you unable to get prompt response from the builder that you can approach the Consumer Forum under the deficiency in the service and unfair trade practice and claim damages for breach of contract and refund the entire amount with an interest and claim separate compenstation for mental agony.

B.T. Ravi
Advocate, Bangalore
736 Answers
30 Consultations
5.0 on 5.0
In the given scenario, you may first cancel the booking quoting the inordinate delay in starting the construction work and  better  accept the PDC  get them encashed, after that you may issue legal notice demanding interest as well as compensation for the mental agony you suffered due to the company's irresponsible attitude and deficiency of service and subsequently, if need be, you may drag the builder to consumer forum seeking redressal to your grievance against him.
T Kalaiselvan
Advocate, Vellore
14010 Answers
127 Consultations
5.0 on 5.0
1) commitment letter issued by builder to pay 18%pa would be binding upon the builder 

2) file complaint before consumer forum . you save on court fees 

3) if cheque bounces you have to file cheque bouncing case against builder under section 138 Ni 

4) police may not intervene as they will direct you to file complaint under section 138 NI 
Ajay Sethi
Advocate, Mumbai
23240 Answers
1219 Consultations
5.0 on 5.0
If you have to receive back the money from Dreamz then it will take upto 6 months because they have to return the money to many customers, but since they have agreed to repay it with interest @ 18%.
Firstly seek for cancellation and then after they hand over the PDC cheques to you deposit it and after it bounces you will have to issue a legal notice U/s 138 of NI Act giving them 15 days to repay the amount on the dishonoured cheque, failing which you will have to file a PCR at the magistrate court, bangalore. 
Kiran N. Murthy
Advocate, Bangalore
765 Answers
50 Consultations
5.0 on 5.0
* What is the maximum days our law allows these builders to refund entire amount along with interest. They issued commitment letter which says that they will pay 18% interest in case they fail to give possession within 23 months.   
So their commitment is very clear that you may have to wait for their 23 months time schedule to initiate any legal action against them if they fail to keep up their promise/commitment. The question of involved law in this will arise only after you have initiated the legal process. 


Is this letter valid in the court of law,  or do our courts enforce RBI interest rate structure?.
If he has committed in writing, this will be an evidence against him if you start legal process. 
Courts are not automatic machine to enforce any law without the affected party seeking relief as per the existing law.



Should we file case in consumer forum or civil court. which court gives optimum results in this regard.
You can claim relief through either of the court but for a speedy disposal consumer forum will be having a proper reply/response.




Can we take a help of local police, if this cheque bounces. will they support us for getting DD from them.
This being a civil matter the police may not interfere in this issue hence follow the legal process through court itself. 
T Kalaiselvan
Advocate, Vellore
14010 Answers
127 Consultations
5.0 on 5.0
Hi, based on the letter you can approach consumer court for claiming  amount with interest.

2. It is better you can file a complaint in the consumer itself
Pradeep Bharathipura
Advocate, Bangalore
4105 Answers
133 Consultations
4.3 on 5.0
1. You claim the interest at the rate which the builder has assured to pay,

2. The letter/agreement is a valid document acceptable before Court of Law,

3. File before Consumer Forum which has been formed to hear such cases. Cases filed before the Consumer Forum will be disposed of much faster (1 to 1 & 1/2 years)than Civil Court,

4. If the cheque bounces then police will not interfere at all in getting DD. You shall have to file a cheque bouncing case u/s138 of N.I. Act.
Krishna Kishore Ganguly
Advocate, Kolkata
12112 Answers
231 Consultations
5.0 on 5.0
1. There is no time limit prescribed by the law to refund the amount as this boils down to the clause, if any, to this effect in the contract. If the time limit has been laid in the agreement then it is sacrosanct. They are bound to pay the interest which they have agreed to. 

2. Police has no role in cheque bounce cases.You have to engage your own lawyer as it is a breach of private right.
Ashish Davessar
Advocate, Jaipur
18102 Answers
448 Consultations
5.0 on 5.0
Dear Mahesh Sir, you have every right to cancel the pre-launch flat as per MOU, and also you have every right to get back your amount with 18% interest till realisation....before going to file the case against the said builder/developer you have to issued a legal notice to them for claiming the same, if they failed to do so, you have to file the petition before District Consumer Forum for claiming the same. If you have to file the civil suit for recovery of money by cancelling the said pre-luanch flat, you have to pay the court fees on the claim amount, it will be very high on you, you have to go better to file petition before the district consumer forum. If you want my legal service I will do it.
C. V. Jadhav
Advocate, Bangalore
262 Answers
3 Consultations
3.8 on 5.0

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