• Delay in flat booking cancellation refund amount

I have booked a 3 BHK flat in Rajarhat Kolkata in April 2015 with 80% of the total cost of the flat.At the time of booking , the developer had committed for possession within 1 year of the booking.I have not received flat possession till date and I have made payment of 95% of the total flat value.The developer confirmed posession by October end.

However , due to some reason , I need to cancel the booking.The agreement mentions 10% of booking cancellation charges which is around 3 Lacs.But however the developer has not mentioned the refund amount to be credited to the bank(for home loan closue) and the rest to me.They mentioned they will refund the amount by reselling the flat which will take 60-90 days minnimum and maybe more than that and hence has not confirmed me any date for the refunded amount.This refund process is not mentioned anywhere in the agreement.I am quoting the statement as mentioned in the booking form in the event of buyer cancelling the booking.

"In the event of cancellation/rejection of allotment, after execution of agreement , the company shall hereby entitled to deduct a sum of 10% of total consideration from the paid amount and the applicant hereby consents to the same.Unless an agreement is execute , in writing the applicant shall not be entiteled to and herby agrees not to setup any oral agreement whatsoever or howsoever"

Currently my home loan interest is 600 INR per day i.e. 18000 per month.So every single day delay in the refund , more interest will be levied upon me for a flat loan which I have already cancelled.(including 3 lac INR cancellation charges).KIndly suggest any legal advice so that I could get a faster refund from the developer.
Asked 3 months ago in Property Law from Kolkata, West Bengal
Religion: Hindu
1) file complaint against builder before consumer forum for deficiency in service 

2) seek refund with interest .

3) you had cancelled booking as builder failed to deliver possession within stipulated period . in such a case 10%cancellation charges to be levied on buyer is unfair

4)also seek litigation costs and compensation for mental torture undergone by you 

5) cases before consumer forum take around 2 years to be disposed of

6) most builders  are facing financial constraints . hence delay in refund 
Ajay Sethi
Advocate, Mumbai
23392 Answers
1229 Consultations
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In India it is most unwise to buy an under construction property as the builders are might corrupt and dishonest who either flee after taking money or just go to sleep for 3-5 years and wait for the raw material cost to escalate so that they may extract more from the buyer. Be that as it may, if there is no clause in the agreement which gives to the builder the latitude to refund the amount only on the resale of the flat, he is bound to refund it on demand from the buyer. So you should serve a lawyer's notice to him to refund the amount, and if he does not do then sue him for recovery of the refundable amount with compensation in the court.
Ashish Davessar
Advocate, Jaipur
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450 Consultations
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local lawyer can guide you as time to be taken for disposal of complaint before  state commission 
Ajay Sethi
Advocate, Mumbai
23392 Answers
1229 Consultations
5.0 on 5.0
It has to be filed in State Commission where it may take around a year
Ashish Davessar
Advocate, Jaipur
18264 Answers
450 Consultations
5.0 on 5.0
The cancellation o booking for the valid reasons from yor side is yor right and the provisions for the same has been properly made in the sale agreement itself.
Thus the builder cannot deny or delay the the refund once you have communicated your decision to cancel the booking in writing and the same has been acknowledged by the builder. 
If yo find inordinate delay ie., beyond the stipulated time as mentioned in the sale agreement, you may issue a legal notice to the builder to hasten the demand made by you or to pay penal interest for the period of delay corresponding to the interest you are obliged to pay towards the housing loan.
If the builder is still not responding or not complying with the demand made, you my drag him to the consumer forum seeking relief ad also compensation for the mental stress he caused.
T Kalaiselvan
Advocate, Vellore
14170 Answers
128 Consultations
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However I have one query...
How long does it take on an average for the consumer forum to give its verdict considering the refund amount is between 20L-50L and will come under the State Authority?
For me time is the essence..

A case before consumer forum will ordinarily take a year or little more than that depending on various factors, namely the behavior of both side advocates in the conduct of proceedings, court holidays, judge's leave, member's non-availability etc. 
The delay in disposal of consumer case cannot be avoided and cannot be hastened to meet our requirements.  
T Kalaiselvan
Advocate, Vellore
14170 Answers
128 Consultations
5.0 on 5.0

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