• Builder not willing to give the possession date in writing.

Sir,
I booked a flat directly with a builder (not through any broker) in Greater Noida West in Sept 2016 by paying 10% of the cost with the promise that the possession will be given latest by December 2017 (including grace period of 6 months) and that a builder buyer agreement would be executed after the initial 10% had been paid. Further, the executive finalizing the deal gave me time upto 15/11/2016 for paying another 30% as the deal was on 40:60 basis.
I subsequently received a phone call on 6/10/2016 asking for 30% more as it was falling due on 6/10/2016 to which i said i had time till 15/11/2016. On asking about the BBA, I was told that it would soon be executed. I subsequently received "due" notices by e mail and courier too.
In the first week of Nov, I asked the builder's authorised person for BBA wherein he said that it will only be executed after 30% more had been paid. He also said that it will not have the handing over date as 2017 Dec but 2018 Dec.
I sent a notice by speed post to the authorised person on 8/11/2016 asking him to clarify in writing the date of possession to be mentioned on BBA or else cancel my booking and refund my initial 10% payment. 
Subsequently, two executives visited me on 24/11/2016 and told me that it is the builder's endevor to hand over possession by Dec 2017 though the 42 month period (again verbally) will be March 2018 plus a six month grace period on that. They promised to send the entire BBA plus a written assurance on e mail but sent only one page of BBA containing the 42 month clause without mentioning any dates.
It appears that these people will not give a written committment at all.
What course of action is open to me now if I go in for cancellation? The booking form mentions that earnest money amounting to 10% of BSP (that is almost the entire 10% paid by me so far) will be confiscated in the event of cancellation of booking. Please advise. 
Thanking You.
Sincerely,
Rajiv Singh.
Asked 8 years ago in Property Law
Religion: Hindu

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4 Answers

Well, what is mentioned in the booking documents about next payment .

If it is silent on the dispute raised by the builder then you have a good case.

So send them a written legal Representative asking for execution of BBA and 30% payment simultaneously in default of which cancellation.

See all forfeiture clause doesn't give whole right to the builder the power of total forfeiture of earnest money.Yours is a booking amount which in absence of agreement is liable to be refunded.

If the builder fails to commit then you can file case in consumer forum where in you will not only get back your money but will be awarded with damages as well.

Devajyoti Barman
Advocate, Kolkata
23105 Answers
505 Consultations

5.0 on 5.0

you dont have any written assurance from builder that possession would be given by december 2017

2) if at time of booking flat and making 10 per cent advance payment you had such a written assurance then you can on cancellation seek refund of 10 per cent payment made by you as builder has resiled from his committment and offered to deliver possession only in march 2018

3) if you cancel the booking builder will not refund your 10 per cent earnest money

4) you will have to move consumer forum against builder and seek refund of 10 per cent earnest money paid by you with interest

Ajay Sethi
Advocate, Mumbai
96084 Answers
7727 Consultations

5.0 on 5.0

The practice of making payments to the builder without execution of the sale agreement is wrong as it leaves the buyers at the mercy of the builders. Be that as it may, now serve a lawyer's notice to the builder asking him to refund the money. If he does not do so then you can sue him in the consumer forum for recovery of money with interest,

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

Dear Mr Singh,

You have been extremely insightful in judging the developers intent and in consideration to the subject as you have already sent them a notice, kindly further send a notice stating the previous notice and calling for cancellation of the unit and refund of the amount paid.

Simultaneously as the developer is not giving you the written confirmation and nor the detailed BBA has been provided their intentions are malifide and hence you can also file a criminal complaint for cheating.

For more detailed discussion on subject please feel free to contact for free consulting.

Best of Luck.

Atulay Nehra
Advocate, Noida
1311 Answers
58 Consultations

5.0 on 5.0

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