• Delay in delivery by builder and refund of advance paid

Last year Nitesh Estates Ltd, Bangalore advertised launch of a residential unit "Hunter Valley”. We liked their advertisement and visited the site and on basis of discussion with their pre sales team booked a flat in this project. They asked for pre-launch booking amount of Rs 3.00 lacs which we paid by way of cross cheque on 1st May 2015.

After nearly a year in June 2016 we were informed by Nitesh Estates pre-sales representative that the project "Hunter Valley” was to take much longer than what was anticipated due to delay in obtaining legal and other government statutory permissions. We were asked to consider transferring our booking from Hunter Valley to their another ongoing project. 

We explored this option but found that the price of other project was not fitting our budget. We therefore informed Nitesh Estates by email and also telephonically to refund the booking amount and close the chapter.

Response from Nitesh Estates has lacked any commitment. In fact they are not responding to our emails.
 
My question is whether I should wait for Nitesh Estates to respond, if and when they wish to do or should I file a complaint in the District Commission consumer court Bangalore right now demanding refund of money, along with interest for the delay and if possible for loss.

What is the best option for me and what is my legitimate claim.
Asked 7 years ago in Property Law
Religion: Hindu

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7 Answers

1) file complaint before consumer forum for deficiency in service and seek refund of money paid by you with interest

2) also claim ligation costs and compensation for mental torture undergone by you

3) in future never book flat in pre launch stage

4) always purchase flat when builder has plans sanctioned by muncipal corporation , and commencement certificate issued

Ajay Sethi
Advocate, Mumbai
94723 Answers
7535 Consultations

5.0 on 5.0

Issue a legal notice to them and demand your money back if they are not ready to return your money within notice period then file a complaint before consumer court and claim your money with interest along with compensation for harassment.

Feel Free to Call

Nadeem Qureshi
Advocate, New Delhi
6307 Answers
302 Consultations

4.9 on 5.0

If there is no date of delivery of possession then the same is to be delivered within a reasonable time, failing which the delay on the part of the builder squarely falls within the ambit of deficiency of service and unfair trade practice and as such his actions can be brought to book by way of a complaint before the Consumer Forum u/s 12 of the Consumer Protection Act. So issue a lawyer's notice to the builder to refund the money and if he does not fulfill the demand then move to consumer forum,

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

cheque has been duly deposited in builder account

2) i presume you have in writing rejected builder offer to shift to another project .

3) you have by email sought refund and builder has failed to do so

4) issue legal notice to builder to refund your money with interest

5) you can also without issue of legal notice file complaint before consumer forum

Ajay Sethi
Advocate, Mumbai
94723 Answers
7535 Consultations

5.0 on 5.0

You can do the following;

a) File a civil suit before the civil court demanding for refund of the money along with interest, but in this case you will have to pay substantial court fee and the case could take much longer than you expect to be resolved, or

b) you can file a complaint before the district consumer forum, Bangalore urban and seek cancellation, together with refund of the advance amounts, along with compensation, interest and litigation costs, this would take about 1 year (Number of cases pending before consumer district courts is very high)

c) You would be entitled to claim interest @ 18% p.a on the sum of Rs.3,00,000/- from date of payment till the date of realization, towards costs Rs.25,000/- and as compensation Rs.1,00,000/-, towards litigation costs Rs.20,000/-

Kiran N. Murthy
Advocate, Bangalore
1298 Answers
194 Consultations

5.0 on 5.0

Dear concerned,

Just don't look at filing a consumer complaint ...this is perfect case of cheating ...file a criminal complaint and if police fails to register the complaint file a 156 (3) to the magistrate .

Best of luck

Atulay Nehra
Advocate, Noida
1308 Answers
58 Consultations

5.0 on 5.0

My question is whether I should wait for Nitesh Estates to respond, if and when they wish to do or should I file a complaint in the District Commission consumer court Bangalore right now demanding refund of money, along with interest for the delay and if possible for loss.

What is the best option for me and what is my legitimate claim.

You have been informed by the Sales executive of the builder orally and nothing in writing about it, right?

Well, this is how the builder will play his cheap games by which he neither will refund your money nor will say that he will not.

The email correspondences are not going to solve the issue.

You should send a legal notice by a registered post to the builder giving details of your booking and also about the communication yo received about the inordinate delay in the current project, hence you would like to terminate the booking/contract and ask him to refund the same with interest from the date of payment till the date of settlement.

If the builder do not respond properly nor is complying with the demand made, you may either drag him to consumer forum or civil court for recovery of your money with interest quoting the reason, i.e. the booking was cancelled due to the builder's fault.

T Kalaiselvan
Advocate, Vellore
84925 Answers
2196 Consultations

5.0 on 5.0

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