Since builder has agreed to refund entire amount he cannot levy any cancellation charges
2) delay in delivery of possession was reasons why you cancelled the booking
3) you should get full refund if you file complaint before RERA
Refund/cancellation deed MAHARERA
In 2015, I booked a flat in an under construction property and paid Rs. 13 Lakhs. In 2017, the property was registered under MAHARERA. I was given only allotment letter and was told that the construction will be completed by 2018 and I will get possession in the same year. In 2018, only plinth was constructed, so I told them to refund the full amount. On March 2018, they created a cancellation deed, where they clearly stated that they will refund the entire amount + service tax on or before November 2018. The cancellation deed was duly signed by both parties (buyer, i.e. me and builder) and stamped. Till now, I received only 70 percent of the refund amount. So clearly they did not pay the entire amount on the due date. I keep calling them, and they just postpone dates and have not paid the balance 30 percent yet. Since 30 percent amount of the full refund + service tax is still remaining to be paid, I am planning to file a complaint against them under MAHARERA. My question is: Can I file a complaint under MAHARERA for non payment of the balance 30 percent by the builder despite a mutually signed cancellation/full refund deed between me and the builder? Will there be any problems and will I receive the balance 30 percent from the builder without any booking amount deductions? I guess since the cancellation deed explicitly stated that the entire amount of Rs. 13 lakhs plus service tax will be refunded, I won't have any problem, but I need your advice.
Asked 4 years ago in Property Law
Religion: Hindu
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10 Answers
- As per the RERA Act, if the builder is delaying in construction & delay in possession, then the builder will have to pay 10% interest on the value of the property for delayed possession of flats.
- Hence, if builder fails to delivers the possession of the flat to you on time, then you can cancel the agreement due to his fault and you are liable to get full refund of paid amount with 10 percent interest.
- Further, if you get the possession of the said flat lately, then also you can claim 10% compensation from the builder.
- Since, the builder has already entered into an cancellation agreement with you , then the said builder is bond to refuhd entire amount paid by you with the interest.
- Send a legal demand notice for the remaining dues amount , if no response , then file a compliant before the Consumer Forum and also claim compensation as well .
Yes, you are eligible for filing a complaint with RERA even for the partial non payment of the amount due to you from the builder.
Since you were informed that the entire amount with service tax would be refunded to you upon cancellation of the booking, the builder cannot retreat from his words or commitment.
The builder cannot deduct any amount from the booking especially at this stage, if he does so, you can drag him to civil court for recovery of balance amount with interest on the basis of the evidences available in your possession.
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Yes you can approach maharera or consumer court in the said matter
1. You should be able to sue him to recover the balance 30% as the deed says that entire amount is to be refunded to you.
2. Move swiftly.
Dear Lawyers, Thank you so much for your advice. Before asking for your advise, I emailed his team and even personally messaged him that I will take Maharera's help if he does not transfer the remaining 30 percent. Neither his team nor he replied to my emails and messages. From his silence he seems he does not care at all and seems unafraid. My next question is: What can he do in his defense if I file a complaint under Maharera? What preparation do they have to challenge my complaint? The cancellation deed for full refund was signed between the builder and me after 3 years and while it's clear from the deed that they will have to refund my amount, still what can they do to avoid paying the remaining 30 percent to me?
Asked 4 years ago
1) builder can take the plea that he is entitled to forfeit the booking amount in case of cancellation of booking
2) RERA act provides
Provided that where the allottee proposes to cancel/withdraw from the project without any fault of the promoter, the promoter herein is entitled to forfeit 10% of booking amount for the allotment. The balance amount of money paid by the allottee shall be returned by the promoter to the allottee within 45 days of such cancellation
3) you should take the defence that booking cancelled as builder failed to construct building on time
Why do you want to guess what they can do or challenge your claim in Maha RERA.
You should concentrate on your problem alone and not on their problem.
He has already agreed to refund the entire amount after cancellation of the booking and has already refunded 70% of the amount.
Now he has no reason to withdraw from his commitment.
If you approach RERA with all documentary evidences, he may never have any story to tell before the authorities concerned except to admit the liability and seek time to settle the amount.
You may proceed as what had been advised/suggested to you instead if you are struck with such flimsy reasons you may not be able to recover your amount
- Since, the said builder has entered into the cancellation deed for full refund , then you can claim the same after filing a suit before the court or Consumer forum .
- However ,,you can also file a complaint before the Maharera as well.
1. Serve a lawyer's notice first to him.
2. If he does not accede to your demand then approach RERA.
You need to appoint a good lawyer. Above things are general submission. Only defence can be established after going through the detailed facts of the builders reply etc