Booking if cancelled, money not refunded

Querist : Anonymous (Querist) 18 November 2009 This query is : Resolved
Dear Sir/Madam,

I booked a flat on the promise of promoter to give me an early ownership of the flat with 2 months of booking of the flat as 85% work of the flat work is complete but when actual checked with the builder he said that he wont be able to hand over me the flat next 8 months.
I have still not got into an agreement with them, as I am not sure that the promoter will keep his promises. The promoter is asking to get into an agreement so that bank can give him the money i.e. 85% of the loan amount or else he is threatening to cancel the flat with no refund of money.
Please can you advice me of any law that says the booking amount is not refundable and if yes under which law and what section.
As per my knowledge if a builder is using my money he is liable to refund it back with interest, as I don’t ova him any thing but he dose to me.
I done want to cancel the flat nor do can I afford for a late ownership as I will have to pay the home rent as well as the loan installments as I will be on a loss for both the sides. Can I add a clause in the agreement that the delay in promised date will cause them penalty?
Please guide me with your valuable guidance.

Best Regards
Yash

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Ashok Yadav (Expert) 18 November 2009
The developer can't cancel th eflat without refund of your booking amount, if he does so you can go to the civil court or in consumer court for better remedy. The developer will have to refund your booking amount.

If you dont want to cancel the booking then You will have to sign builder buyer agreement with the builder in that agreement all conditions included, and the penalty clause for delay in handing over of possession is also a part of that agreement, but you will have to check the date of of handing over of possession of flat, because you will get penalty amount from the date which will be written in that builder buyer agreement.