• Refund of booking amount

I had booked a property in Bhiwadi, Rajasthan in Oct 2014. Construction has not yet started. I have made 20% payment. My builder buyer agreement states the cancellation charges as 20% of total property amount. Please suggest how can I get my money back without any or minimal deduction?
Asked 6 months ago in Property Law from Noida, Uttar Pradesh
Religion: Hindu
1) what are clauses in agreement regarding completion of construction .

2) if builder delays completion of construction you can cancel the booking and seek refund of money paid by you 

3) if you seek to cancel  when there is no default on part of builder builder will seek to recover cancellation charges as provided in agreement .

4)20%of the total flat cost as construction charges are exorbitant

5) you will have to move consumer forum and seek refund on cancellation of booking done by you if builder refuses to pay 
Ajay Sethi
Advocate, Mumbai
23392 Answers
1229 Consultations
5.0 on 5.0
Hi

what is the reason of your cancellation, is it an issue from your side.  Is it the delay in construction , if so it is a good reason to cancel the deal and seek the return of the amount.
was there a time clause to complete the construction and possession.
Any breach of contract due to the builder's side, you can ask the advance  amount t back, send the builder a legal notice stating the reasons and ask the amount  back. If you have signed an agreement between the builder regarding the deal, payment schedule and cancellation etc. Legally, the cancellation will be dealt according to the Terms mentioned in the contract.
Take the help of an advocate and send a notice stating the reason.if not paid aproach the district consumer forum with a complaint. 

Thresiamma G. Mathew
Advocate, Mumbai
1316 Answers
85 Consultations
5.0 on 5.0
What is the date of commencement as per BBA? and what is the estimated date of completion with grace period?
Is there is any clause that the builder shall compensate for the delay in construction.
If the project is not yet to commence even after two years of paying the advance amount, you can quote this as reason and cancel the booking while demanding the full repayment due to the problem of the builder.  If he builder refuses to your demand, you may drag him to the consumer forum for refund and also for compensation to the mental agony he caused due to this.
T Kalaiselvan
Advocate, Vellore
14170 Answers
128 Consultations
5.0 on 5.0
Cancellation charges are to be paid only if the agreement has been cancelled by the buyer sans the fault of the builder. If, however, the builder is at fault such as if he has not delivered the possession within time, he cannot forfeit any part of advance amount. It needs to be understood as to what is the date of delivery and start of construction in the original agreement.
Ashish Davessar
Advocate, Jaipur
18264 Answers
450 Consultations
5.0 on 5.0
Hi, In the agreement is there any clause to shows that the possession of the property will be delivered with in specific time and the Builder has fail to handover the possession then you have no other options you have to file a consumer complaint against Builder for deficiency of services and ask him to  refund of the amount.
Pradeep Bharathipura
Advocate, Bangalore
4105 Answers
133 Consultations
4.3 on 5.0
1) the agreement is completely one sided 

2) you can cancel the agreement on grounds that although more than 18 months have passed since booking of flat construction had not started 

3) seek refund of money paid with interest 

4) if he fails to pay contact a local lawyer and file complaint before consumer forum seek refund with interest , litigation costs and compensation for mental torture undergone by you 
Ajay Sethi
Advocate, Mumbai
23392 Answers
1229 Consultations
5.0 on 5.0
A few important things to have been noted by you before making the payment:

Land Record  is the most important document that must be verified before getting into the further details. Land record gives you an idea of ownership, title, obligations, rights, mortgage etc. Do not buy a property or apartments whose title is not clear. A ‘certificate of commencement‘ is mandatory to commence any construction of a property. The certificate is issued by the town planning department or development authority in some cities. Construction certificate shall only be given by respective authorities only after inspection of some of the important documents like title, layout plans etc.  When you have verified all the documents mentioned above, ask the developer to provide you a copy of booking form, allotment letter and BBA. Usually allotment letter and BBA are provided to you few months after making payment of 2-3 installments that would account for almost 20-30% of your flat consideration. At this stage you do not have an option to object to any clause. Objection means cancellation and cancellation means forfeiture of earnest money. You should force the builder to provide a sample copy of BBA and go through each and every clause carefully.  The builder will always want to avoid presenting you with a BBA at the initial stage since most of them are one-sided, and are presented to the buyers at a stage when you just cannot afford to say no to it. After having a look at the BBA, you have a choice to walk away if builder’s agreement is too aggressive. Chances are that you shall be left helpless and BBA would be slapped on your face when you have any problem after making the payments.
For example now in this case, you were not knowing about the BBA before making the payments hence now you are not able to make any objection to the one sided agreement or about the missing cancellation clause. 
Burt even now you can communicate in writing about the cancellation of the booking and demand the deposit money, let him give a reply quoting the conditions, this unjustified and unlawful condition can be challenged in the consumer court and recovery also can be made through consumer forum.
For filing a case before consumer forum, you can consult a local advocate having expertise in this field



T Kalaiselvan
Advocate, Vellore
14170 Answers
128 Consultations
5.0 on 5.0
If no date of delivery is mentioned in the contract then delivery has to be given within a reasonable time. The builder cannot take a lifetime to complete the project and deliver the possession. Issue a lawyer's notice for cancellation of contract to the builder and demand refund of money, if these demands are not met then you may move the consumer forum.
Ashish Davessar
Advocate, Jaipur
18264 Answers
450 Consultations
5.0 on 5.0

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