• Refund of booking amount and service tax

I had booked an apartment in Mumbai chembur area in March 2015 (it's an SRA project). Then basement work showed and said I will have possession in Dec. 2017. For initial booking they offered me so called good rate as I paid 50 % as lumsum amount+ service tax.  As of now there is no much progress happened more than plinth and builder is still not given the possession to the SRA occupants. If I continue it will take another 4 yrs possibly. Today I sent builder an email about the cancellation and exit from the project. In my allotment letter it is mentioned that 1 lac will be forfeited if booking is cancelled and no time line is mentioned within how much time amount will be refunded. No agreement and registration is done. My questions are 
I) should I write a letter and post them or email is ok about the cancellation? To be safe side I have also sent a letter through mediator marketing company.
II) is service tax refundable?
III) what should I do to avoid 1lac forfeit amount deduction? 
IV) what are the chances of getting my money back? I paid entire amount including service tax by Cheque payment only. 
V) It's been a month and builder asked to submit all original receipts and allotment letter to begin the refund process, how valid is this submission? which I denied, so far.
Vi) according to new law what benefits I will get on cancellation of booking? Since builder has used my money.
Asked 4 months ago in Property Law from Mumbai, Maharashtra
Religion: Hindu
1. Since the date of delivery of possession is in Dec 2017 you cannot cancel the booking prior to that date except on the grounds mentioned in the agreement to sell or on other mutually agreeable terms. Unless the due date expires there is no default by the builder. Be that as it may, if you want to cancel the booking, which can only be in the light of what the agreement states as there is no default by the builder, then issue a legal notice to the builder to refund the paid amount. 

2. If you succeed in showing the breach of contract by the builder you are entitled to recover the service tax also.

Ashish Davessar
Advocate, Jaipur
18102 Answers
448 Consultations
5.0 on 5.0
1) you can send email about cancellation of booking . Also send letter by speed post 

2) you cannot avoid forfeiture of rs 1 lakh as contract provides for such cancellation charges 

3) refund period would depend upon builder financial position 

4) you can request builder to give in writing period within which refund woukd be made 

5) keep Xerox copies of all documents  and obtain acknowledgment of receipt of originals by builder 
Ajay Sethi
Advocate, Mumbai
23217 Answers
1219 Consultations
5.0 on 5.0
1.You have to send letter highlighting their part of breach of agreement and not completion of project with in committed time, non providing proper service etc., No need to mention cancellation of our side. You have to ask for repayment of you have paid along with interest, damages and compensation. 
2. Each and every rupee you have paid is refundable with interest.  
3. Negligence and delay is from their part, so you can approach consumer forum for recovery of amount paid and compensation with interest and damages.
4. You have very good chances to get back money. Apart from paying amount through a account payee cheque you must have some receipt and allotment letter you have claim basing on the same documents  
5. No need and don't handover any original receipts or allotment letter to builder, any original should be submitted at the time of receiving amount from the builder only. Generally they will refund through cheque, receiving of cheque and submission of originals should be done simultaneously. 
6. you will get bank entire amount you have paid along with penalty, interest and compensation. There will be chances of publishing their delay in works or incapability in local news papers which would be damage builder reputation. builder and 


Lakshmi Kanth
Advocate, Hyderabad
223 Answers
2 Consultations
4.8 on 5.0
I) should I write a letter and post them or email is ok about the cancellation? To be safe side I have also sent a letter through mediator marketing company.

It is better that you send the communication canceling the booking by a registered post with acknowledgment card.





II) is service tax refundable?

The developer would not have paid the service tax yet, hence ask him to return the same or to provide the tax payment details which you can claim refund from the government owing to cancellation of the booking. 






III) what should I do to avoid 1lac forfeit amount deduction?

Since this is an unregistered agreement, the condition laid down in it is one sided, hence you do not agree for its deduction, you may drag him to consumer court seeking return of the same 



iV) what are the chances of getting my money back? I paid entire amount including service tax by Cheque payment only. 

Drag the developer to the consumer forum which will be the quickest method for recovering the amount.






V) It's been a month and builder asked to submit all original receipts and allotment letter to begin the refund process, how valid is this submission? which I denied, so far.

Without submitting the details, the builder may not process the refund so decide accordingly.





Vi) according to new law what benefits I will get on cancellation of booking? Since builder has used my money

The new law is yet to be enforced/implemented.  Hence wait. 
T Kalaiselvan
Advocate, Vellore
14006 Answers
127 Consultations
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