• Cancellation of flat booking and refund

Sir, booked a flat with Bangalore builder. Paid Rs.2 lacs alongwith application and subsequently another Rs. 4.37 Lacs before entering into agreement. Went to Bangalore in the month of April 2016 for entering into agreement and due to demand of additional payment from the builder, I did not enter into agreement and wanted cancellation and full refund. The builder agreed to pay the refund after deducting 20% of the paid amount, since there was a clause in the application form that 20% will be forfeited in case of cancellation. Now the builder is putting pressure for cancellation of the flat and self signed letter for 20% deduction of the paid amount. After exchange of emails, I even agreed for deduction of 10% on the application money (Rs.2 Lacs) not on the subsequent payment (Rs.4.37 lacs). Still the builder is not agreeing for my request. Instead asking for self signed letter for 20% deduction of the full paid amount. Please guide and help me sir
Asked 8 months ago in Property Law from Mumbai, Maharashtra
Religion: Christian
You create record or secure the records for the cancellation of the booking as evidence.
Issue a legal notice intimating the cancellation of the booking to the builder  and demand  full refund of the consideration amount given to him so far.
Let him give a reply  or comply with the demand made, if he is not responding then you may drag him to the consumer forum for claiming the refund as well as the compensation for the mental stress he caused to you on this aspect.
You can file a money recovery suit also instead of approaching the consumer forum but it will take long time. 
T Kalaiselvan
Advocate, Vellore
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Don't agree fior 20 per cent cancellation 

2) file complaints nt before consumer forum and seek refund of money with interest ,litigation costs 
and compensation for mental torture undergone by you 
Ajay Sethi
Advocate, Mumbai
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1483 Consultations
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The builder has the right to forfeit the advance amount paid to him to the extent provided in the agreement. You have the right to seek the refund of entire money only if the cancellation was necessitated due to failure of the builder to honour his part of the agreement or if the agreement was rendered inexecutable due to reasons which could not be foreseen at the time of application.  
Ashish Davessar
Advocate, Jaipur
19587 Answers
507 Consultations
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