• Bulder refused to refund booking amount

I had booked a home in pre-launch scheme of one builder in dombivli. Due to some personal financial urgency’s, i had requested builder to cancel the booking and refund the money paid to them. They are saying that the money will not be refunded in any circumstances  as per the cancellation clause hence it will be forefieted. 

Is the money paid to the builder (about 4 lakhs) will really be forefieted due to the clause mentioned by the builder or is there a way to get it back? please advise the course of action ?
Asked 6 months ago in Property Law from Dombivli, Maharashtra
Religion: Other
Dear Sir/Madam, the builder cannot forfeited the full amount, it is illegal. You have every right to get your money as per sale agreement clauses, kindly send said sale agreement I will review the same. 
C. V. Jadhav
Advocate, Bangalore
262 Answers
3 Consultations
3.8 on 5.0
1. If there is an agreement entered in to by and between you or if the brochure issued by the promoter has a clause that the advance amount paid by the buyer will be forfeited for cancellation of bookings, then you shall have to abide by the said  term of the agreement,

2. However, you can file a complaint case before the local District Consumer Dispute Redressal Forum alleging unfair business practice by getting an one sided agreement signed by the developer and claim refund of the booking amount with interest, damage and cost.
Krishna Kishore Ganguly
Advocate, Kolkata
12131 Answers
233 Consultations
5.0 on 5.0
1) if you had signed the agreement terms would be binding upon you 

2) it is necessary to peruse agreement signed by you 

3) most of agreements are one sided and in favour of builder 

4) fike complaint before consumer forum against builder and seek refund of advance paid by you 

5) builder can deduct 10 per cent or so as cancellation charges but to forfeit entire amount is unreasonable 

Ajay Sethi
Advocate, Mumbai
23346 Answers
1221 Consultations
5.0 on 5.0
if you had signed the agreement terms would be binding upon you 

2) it is necessary to peruse agreement signed by you 

3) most of agreements are one sided and in favour of builder 

4) fike complaint before consumer forum against builder and seek refund of advance paid by you 

5) builder can deduct 10 per cent or so as cancellation charges but to forfeit entire amount is unreasonable
Ajay Sethi
Advocate, Mumbai
23346 Answers
1221 Consultations
5.0 on 5.0
Hi, if there is any specific clause for forfeiture  then you can't do anything and it is binding or else you have to approach Consumer Court  for recover of the amount.
Pradeep Bharathipura
Advocate, Bangalore
4105 Answers
133 Consultations
4.3 on 5.0
If there is any clause regarding the cancellation and botth of you signed the same then terms and conditions of agreement will be follow and the court wil also pass an order as per the performance of agreement executed between you and builder.

But if there is any fault on builder's part then you may file a complaint against builder before consumer court and claim compensation with your booking amount and also claim the interest.

Feel Free to Call
Nadeem Qureshi
Advocate, New Delhi
3537 Answers
130 Consultations
4.9 on 5.0
The refund of money has to be within the ambit of cancellation clause. Therefore, if the cancellation clause provides for forfeiture of the booking amount the builder can invoke it. Unless you can show the fault of the builder in the performance of contract you may not be able to recover your money except by going to consumer forum on the ground that the clause is illegal in as much as it provides for forfeiture of money in entirety. 
Ashish Davessar
Advocate, Jaipur
18183 Answers
449 Consultations
5.0 on 5.0
First of all communicate your decision to cancel the booking to the builder in writing and have an acknowledgment of it either by sending it by registered post or handing it over in person.
Let him deny but ask him to give the denial in writing.
If he refuses to give the same in writing, dont worry, don't insist on it.
The evidence of acknowledging the notice intimating your decision of cancelling the booking should be secured.
File a consumer case seeking refund and compensation for mental agony from him
You can file a money recovery suit also through a civil court.
The agreement should contain the clause for refund, the builder cannot make an agreement without such clauses.
T Kalaiselvan
Advocate, Vellore
14149 Answers
127 Consultations
5.0 on 5.0
Dear Sir/Madam, Builder has no right to forfeited the full amount which you have paid, you can claim as refund the said amount as per terms and conditions of sale agreement/MOU. 
C. V. Jadhav
Advocate, Bangalore
262 Answers
3 Consultations
3.8 on 5.0
Dear Sir/Madam, Yes sir you are quoted the user rating is POOR on what basis I am not understand please clarify it. I would like to advice that full amount forfieted cannot stand as per law, it is cheated to you by the builder, you can claim your amount before the appropriate court of law.
C. V. Jadhav
Advocate, Bangalore
262 Answers
3 Consultations
3.8 on 5.0

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