• Refund of token money

I booked a flat in soft-pre launch of a project with a token amount of 1Lac. Was unable to pay the 15% amount as first installment within 30 days. So asked for some more time for arranging the money. Now 3 months gone I am not able to arrange required amount. So willing to withdraw booking.
Builder is not returning my token money back now asking to pay the first installment with interest.

Please guide me what to do? How I can recover my money back from builder?
Asked 4 months ago in Property Law from Navi Mumbai, Maharashtra
Religion: Hindu
You can issue a notice for cancellation of booking to the builder, but as the cancellation has been necessitated by your inability to arrange the funds and not the default of the builder the latter can forfeit the balance amount in whole or part in accordance with the agreement.
Ashish Davessar
Advocate, Jaipur
18057 Answers
445 Consultations
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1) what were terms of booking? 

2) is there a clause that in case you cancel the booking token money would be forfeited

3) it is necessary to peruse the contract entered by you with builder  to advice 

4) if there is no such clause and builder refuses to refund file complaint before consumer forum and seek refund with interest from builder  
Ajay Sethi
Advocate, Mumbai
23116 Answers
1214 Consultations
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Hello
Your option is to send him a legal notice asking the refund of the amount.
.Was there any initial contract signed between you and the builder? if so what does it say about the refund of the amount paid, in case of  cancellation from the side of the purchaser.
if an allotment letter was issued to you or a receipt of the payment , check whether there is anything mentioned about the forfeiting the advance/token amount paid to the builder.
Consult a lawyer with the receipt/allotment letter and other documents if any and find out about the forfeiture clause   is included in the allotment letter.
If there is anything mentioned that the builder will retain the advance amount, you can approach  court  to recover the amount after sending the legal notice.
S J Mathew
Advocate, Mumbai
1949 Answers
65 Consultations
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Do you have the receipt for the deposit of the token amount?

Actually it is an illegal practice to obtain token amount without executing an agreement for sale.

A copy of the agreement for sale has to be furnished to the prospective buyer, if he is willing to accept the terms and conditions then he can pay the initial amount and get the agreement registered in his favor.

This is the actual procedure.

Now do you have evidence for the payment of this amount.

You issue a legal notice to the builder to return the amount based on the evidence for having deposited the token amount with the builder, if he is not returning or not replying or responding, drag him to consumer court for recovery and compensation or file a civil suit for recovery of money. 

Consult a local advocate and proceed further.
T Kalaiselvan
Advocate, Vellore
13932 Answers
127 Consultations
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