Criminal Trident Pack: IPC, CrPC and IEA by Sr. Adv. G.S Shukla and Adv. Raghav Arora
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Ratnadeep Rakshit (Architect)     18 June 2010

Builder does not refund my booking money

Hi,

I am in a fix. I booked a flat last month at Mind Space Realty's project Queenstwon at Chinchwad, Pune. Unfortunately, due to some financial consraints, I had to cancel my booking. My booking amount was Rs. 5,25,000.00
The Sales Manager assured me from day one that I can cancel the booking without any hassels(if I ever have to). Even on the day when I put down my cancelation request letter, the sales manager told me that I will receive my cheque in 10-15 days max. But, today when I gave a call to their corporate office, they told me that they will not be able to refund the money till another buyer books the flat that we just canceled. They told me that the maximum time required for refund is 1 year. I just wonder what legal rights they have to keep on hold my money when I have not signed any MOU with them in this regard. Should they also pay for the interest on the money accrued.

I want to know the best way to handle this issue. Also, any legal advice would be highly appreciated.

Regards
Ratnadeep



Learning

 21 Replies

adv. rajeev ( rajoo ) (practicing advocate)     18 June 2010

Issue notice to refund the booking within the given time, if builder didn't turn up then file a suit for recovery of money.  You will have to pay the court fee on the claimed amount.

1 Like

Suchitra. S (Advocate)     18 June 2010

Apart from what Rajoo Sir has said, if you go to court, you can ask for the interest on your booking amount too and also, compensation for the trouble you have sustained because of money being held up.

Adv Archana Deshmukh (Practicing Advocate)     18 June 2010

Issue notice to the builder to  refund the booking amount.  If he fails to do so, you can file a complaint in the consumer foru.

Krishnan lakshminarayanan (None)     18 June 2010

I had similar problem with a reputed builder in Pune. In spite of my making frequent visits to their office and sending registered letters, they did not bother to refund the money. The builder will refund the money only after your booked flat has been resold to someone and you will have to wait till such time. Going to court is a very lengthy procedure and involves money. After waiting and frequent follow up, the builder refunded my money that too after deducting 10% towards administrative charge. He did this only after the flat has been resold to someone.

Ratnadeep Rakshit (Architect)     18 June 2010

Thanks for the information.Could you please tell me, how I should issue the notice? Do I have to engage a lawyer for this? Please guide me on this.

Adv Archana Deshmukh (Practicing Advocate)     18 June 2010

Send the notice by RPAD. It is better if you engage a lawyer, he/she can guide you properly and that notice also shall have a better effect.

1 Like

bhagwat patil (Property due diligence 9422773303)     19 June 2010

u dont have mou. have any receipt which prooves that the amount  is is given as consideration of a cost of a flat. otherwise it will be treated as a advance to the builder.in court the builder will take the same stand. it will take 5 to 6 years. after that the court will pass a decree. then u have to go for excution it will take decades. better u follw up frequently . he will give back ur amount only after booking the flat by next person.u mey take help of recovery liaisoning agency for follow up.

Suman Kumar Sinha (Lawyer)     19 June 2010

In my opinion instead of filing a civil suit for recovery of money you can file a consumer case before the District Consumer Forum and get your money back with interest. Your case comes  within the purview of Consumer Protection Act. In a civil suit you will have to pay advolerum court fee and  it is time taking also. There are so many decided cases of State and National Commission on this subject

Suman Kumar Sinha

Ratnadeep Rakshit (Architect)     21 June 2010

Hello,


I have had a word with the builder and he said that they would take 2-3 months to return the money without deducting any cancellation charges. I plan to send a letter to the company to return my money within 30 days and send it via registered post. If they do not still entertain my request, I will go to the consumer court.


But I have one more question on this - since I has some financial crunch ( or you can say due to the new service tax), my budget has overshoot. Therefore, I have decided that I will go for a property that comes easily under my budget little far off in the suburbs. And there are some good offers availabe currently and my approved bank loan will expire in August. So, if I can't finish the deal within 1-2 months, buying a flat will more or less become a distant dream for me as prices will keep increasing gradually.

So, I want to know if I can claim a bigger compensation from the Builder? And if it is possible; to what extent? Also, do I have a strong case or a weak one? 

Note - To answer one of the previous posts ; I have a receipt of RS 5,25,000.00 issued by the builder as a booking amount for the flat.


Regards

Ratnadeep

phool chand (warrant officer)     08 March 2014

Sir,

Booked a flat with Jaipuriya in project JR Village 1 with amount 156000/ - 3 yrs back. His project is cancelled by GDA Ghaziabad . Builder agreed to refund money by 28th Feb 2014. But after 28th feb he is neither attending any phone call and not meeting in the office. Even I submitted the flat surrending letter in the office. Please advice.

Thanking you

Phool Chand

phool chand (warrant officer)     08 March 2014

Sir,

Booked a flat  3 yrs back. His project is cancelled by GDA Ghaziabad . Builder agreed to refund money by 28th Feb 2014. But after 28th feb he is neither attending any phone call and not meeting in the office. Even I submitted the flat surrending letter in the office. Please advice.

Thanking you

Phool Chand

Ajay Jain (govt. servant)     20 January 2015

I HAVE BOOKED A FLAT IN APRIL 2014. BUT DUE TO SOME ECONOMIC PROBLEM I CANCELLED IT IN JUNE 2014.BUT REAL ESTATE COMPANY  MAKING DELAY IN MY REFUND OF BOOKING AMOUNT.

PLEASE LET ME KNOW WHAT IS  RPAD .HOW CAN COMPLAINT TO CONSUMER FORUM.

IS ANY COURT FEE PAYABLE  FOR COMPLAINT TO CONSUMER FORUM.  

AJAY JAIN

Rajeev kumar yadav   06 April 2016

I am shiv Raj Singh Yadav  I had booked flat E 402 victory one central sector 12 grater Noida west.& Booking amount 100000/- by check. Bank procedures and norm they are not going to sanction my loan request,

so I have to cancel my booking & request you to refund my booking amount (100000/-)..

But builder did not return my booking amount He said deduction consider Total sale Amount ( thirty Lac.) Builder send via mail Indemnity Bond

latter to be  refund will process.

please sir suggest me

If any query kindly call to me 9350087306


Attached File : 350170 20160406205121 489196447 e 402 indemnity bond refund chs.docx downloaded: 104 times

Prem   03 June 2016

Dear sir,

I am PK nautiyal. I have booked flat in shubhkamna lords sector 79. in year May 2013. I have given the amount Rs 20.11 lacs to builder. Flat Possesion date is Dec2016. There is no work in the tower. and other tower work has also stopped. Builder have invested in other appartments and is cheating the buyers.

There are around 400 buyers. I am in need of money and need refund. My EMI on loan of 10 Lac is also going I am in trouble and need the refund.

How to proceed. Builder saying he have no money to pay refund.

Please suggest me as ASAP.

regards

PKN


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