You would be bound by term and conditions of the booking form signed by you
2) refuse to pay penalty
3) let builder take legal proceedings to recover said amount from you
4) you would not get refund of Rs 2 lakhs paid by you
Refund of booking amount from builder
We paid 2lacs as booking amount for property work 90lacs in Aug last year. We told builder to cancel in October last year. Since then I have told their sales person many times my wish to cancel. Now builder has sent a notice that pay 10% of flat value as penalty! How to proceed? The booking paper did mention about the charges, but sales person assured us money would be refunded full. Please advise.
Asked 8 years ago in Property Law
Religion: Hindu
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3 Answers
Hello,
1) Of there's no specific mention about cancellation charges in the document you can get a full refund of your advance payment.
2) Send a reply to the notice from the builder and demand immediate refund If you haven't formally cancelled the booking do so immediately and mention that you had approached the builder many times since October last year but he deliberately refused to cancel the booking.
3) If her fails to pay you can file a suit in court for recovery of your money with interest.
If you are yet to enter into any agreement then the demand made by the builder is illegal and not maintainable.
You send a legal notice intimating your decision to cancel the booking and demand refund of the advance paid amount.
If the builder is not responding properly you may drag him to consumer court seeking refund as well as compensation for deficiency in service or can file a money recovery suit.
