Subject: Can a builder deduct ₹70,000 from booking amount when no Agreement for Sale has been executed?
I booked a flat in Nikoo Homes and paid a booking amount. The booking form mentioned a deduction of ₹50,000 + GST in case of cancellation.
However, no Agreement for Sale has been executed or even initiated between me and the builder so far.
A dispute has now arisen regarding channel-partner tagging, because of which I am being asked to cancel the booking. The builder is asking me to submit a cancellation form and has informed me that ₹70,000 will be deducted from my booking amount, with the balance being refunded.
My questions are:
1. Since no Agreement for Sale has been executed, can the builder legally retain/deduct ₹70,000 from the booking amount?
2. Is the builder bound only by the terms specifically mentioned in the booking form (₹50,000 + GST), or can it impose a higher deduction of ₹70,000?
3. Does the fact that the cancellation is arising from a channel-partner/tagging dispute affect my right to a full refund?
4. Can I refuse to sign the builder’s cancellation form if I disagree with the proposed deduction?
5. Would this matter be appropriate for a Karnataka RERA complaint, and what relief can I seek—refund of the entire booking amount, interest, and/or compensation?
6. What documents/evidence should I preserve before submitting the cancellation request or approaching RERA?
I would particularly like advice based on Karnataka RERA/Real Estate (Regulation and Development) Act provisions and relevant Karnataka RERA/consumer-court decisions. Please see I am a working mother of a kid.
