Civil Procedure Code (CPC)

Builder is not returning booking refund after cancellation

How do I get a refund back from a builder for a flat booking cancellation?
He promised to return refund amount in installments over mail but delaying it by giving any reason every time. Should i file a case in RERA or consumer court.

Yes, After cancellation of deal builder should have refund advance amount by deducting his administrative expenses ,you should file complaint against builder before District Consumer Forum for his deficiency of services and unfair trade practice


Hello sir, greetings of the day.
As per your query, you can follow the following steps for getting the refund from your builder for a flat booking cancellation. 
In this type of matter, you must approach the consumer court. The Supreme Court in his judgements has clearly held that the aggrieved consumer can approach the consumer courts and the consumer courts can give reliefs for the breach of contract and non-payment of the refund amount. 
You can file a police complaint against him for cheating and fraudulently taking your money.  
You can also file a complaint against the builder before your local District Consumer Dispute Redressal Forum alleging that your builder cheated you and took money from you to give you the flat and now he is not retuning your money after you cancelled your flat booking. 
You can go ahead and file a legal notice.
Generally for the refund of the money, if the consumer is not happy with the builder’s conduct, vis-à-vis the refunding of money, they can also approach the Real Estate Regulatory Authority in their state. This can be done, if the seller is a developer and the unit purchased is an under-construction property. If you bought a resale home from an individual seller, you will have to approach the consumer court, to get your grievance addressed.
Hope this answers your question.
Nirali Nayak
Law Student

Retired employee.

File online complaint before District Consumer Forum only after one month after issuing a notice to builder through Advocate.


Thank you all for your reply.

I will brief about my issue and want a suggestion.

I booked flat in Jan 2020 and paid 3 lac booking amount. After that i was about to do agreement, so total i paid remaining amount.Total i paid 10.50 lac amount to builder and after that covid came in Feb 2020 and lockdown started. So agreement was delayed and after first wave i lost my job and so decided to cancel my booking and asked builder to return my booking amount over mail. In Nov 2020 i officially mailed and cancelled my booking. After that we discussed over call they told they will deduct 1 lac and give remaining 9.50 lac back then i negotiated and they finally agreed to give 10 lac ruppes back and deduct 50 k as cancellation amount. After that they told because of COVID we can not pay this whole amount in one go so will give it in 6 installment and it will start from March 2021. This whole thing they replied on mail from their official mail id. Now as per schedule i should have received 3 installments but they are delaying it by saying different reasons every time. On mail they are saying we are following up on this with management. So my question is should i file a complaint on RERA about this or should i file case in consumer court.
Retired employee.

First, issue a Registered legal notice to the builder and let him commit something in writing.   Demand in the notice for post-dated cheques for the entire amount due for refund as per monthly installment..  Never hurry for entering into any type of litigation as it takes years and by that time you enter into litigation it should appear for the deciding authority, that you were patient and explored all legal avenues. 


You have not mentioned the area or city, if its in Mumbai, you may contact me personally, I had already handled similar matter, Regd Adv Singh 9326366062

First you create a documentary evidence to fight your case legally against the builder.

You may issue a legal notice communicating yor decision to cancel the booking and demand the refund of the booking amount with interest.

After that you have choice to either approach RERA or consumer forum for relief and remedy.




Your are not logged in . Please login to post replies

Click here to Login / Register  


  Search Forum



Post a Suggestion for LCI Team
Post a Legal Query
Civil Litigation Course     |    x