How can i recover my paid amount for flat from builder

This query is : Resolved 

29 March 2016

Respected Sir,

I have booked a flat with TGS Construction Pvt Ltd in Bangalore on 15 Aug 2015 during pre launch offer by paying 30% of total cost of flat i.e all total Rs810000/-.

At the time of booking the proposed land for flats was not transferred in name of Builder(TGS Construction) from Land owner and till now it is not transferred also. Earlier a sale agreement was only made between them by paying about 35% of total cost, same was cancelled due to non payment of rest amount. Now again a fresh Sale Agreement is made in Feb 2016 by stating paid amount about 35% between land owner and TGS Construction.

At the time of booking builder has made the Memorandum Of Undertaking with me with some terms & conditions by stating that
(i)flats will be handed over in 24 Months. If fails to do so the builder will pay rent fixed on mutually.

(ii) In case of cancellation of this by me (buyer) the builder will refund the paid amount without interest within 90 days. Same way if it cancelled by builder paid amount will be refunded by builder within 90 days with 8% interest.

But from my date of booking (15 Aug 2015)to till now the builder (TGS Construction) has not shown any progress on the proposed land,It is same laying plain land as it was earlier. By asking every times their employees replies that it is under conversion and other various approval by Govt and every time also tell it will be done within 3 months.

Now I wanted to cancel the said booking and want to recover my paid amount as per terms & conditions of MOU. But I have fear that what I will do when given post dated cheque may be bounce because many other customer have faced such problems.

In this regards I have tried to ask for cancellation but they have behave with me in very rude manner.

Therefore, In view of above. It is my humble request to experts, to guide me in very clear way by that I can recover my paid amount.

Or shall I wait for new coming enactment The Real Estate(Amendment ) Bill 2016 which is under process in parliament.

Please guide me accordingly.

Thanking You Sir.

PM Verma
Mob 7259907852

MadhuOnline (Expert)
03 April 2016

First on 26 March 2016 Real Estate Act was published in Gazette of India

While typing I have not read text, but will do today.

Memorandum of Understanding does not have value in court it is just peace of paper. So every thing which you state is full of malpractice done by builder.

Karnatak already has one old act title of the act


It covers such flat transaction , it is clear as per sec 4 of that act Promoter should make agreement of sale of flat and register it . (In your case this is not done)

Sec 3 of the above mentioned Karnataka act too have stated list of documents and disclosure to be made that too seems they have not done

Approach local Advocate , start criminal proceeding against builder as well as proceeding to recover under Flat act.

State law was already existing from 1972 , So he has to follow it , he has not done. This central act if further severe provision etc. are there then have to check.

Meet some local advocate, who is thorough in flat act of Karnataka and criminal proceedings.

You need to recover money for bogus or un fair transaction done

Adv. Yogen KakadeOnline (Expert)
05 April 2016

I agree with madhu

adv.bharat @ PUNEOnline (Expert)
30 June 2016

you need to give notice through local lawyer for recovery of amount along with simple rate of interest.

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