Fin Advisor (Service) 17 December 2021

Builder not giving refund cheque before registering the cancellation deed

Hi, I had booked an under-construction flat in August '19 with VTP construction company. However due to personal reasons, I have decided to cancel the "Agreement for sale".

Builder is okay to proceed with the cancellation deed however:

a) as per the agreement, they are sticking to 10% cancellation fee (although I have requested them to waive it off, giving genuine reasons)

b) they are asking me to proceed with cancellation deed first which will have the refund cheque amount, date, payable to mentioned

Due to personal emergency, I have no other option but to agree for the cancellation fee however I feel it's a risk to proceed with cancellation deed without getting the refund cheque first. Hence I have requested the RM team to handover the cheque first and then I will proceed with signing the cancellation deed.

Please advise whether this is the correct approach. Also can I file any case / complaint with RERA if the builder sticks to their decision of doing the cancellation deed first and then give me refund cheque? Many thanks in advance.

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6 Replies

P. Venu (Advocate) 17 December 2021

The facts posted suggests no legal elements or real issues.

Kishor Mehta (CEO) 17 December 2021

The cancellation deed should be signed against submission of cheque only.

SHIRISH PAWAR, 7738990900 (Advocate) 17 December 2021

Hello,

You have to first get the cheque before or at the time of registration of cancellation deed. If builder is not ready then you can take legal action against the builder. You can approach rera or you can approach consumer forum against the builder.

Anaita Vas 17 December 2021

Approach RERA and file a complaint with the RERA Authrotiy.

File FIR against builder for fast recovery. Along with it, you can file consumer complaint for compensation/refund. Complaints before consumer forum may take some years to be disposed off.

Regards,

Anaita Vas

Shubham Bhardwaj (Advocate) 17 December 2021

Dear Sir,

If the cancellation fee is as per Agreement entered between you and builder then you dont have any cause of action against him. Simply stick to your demand of cheque before cencellation simultaneoulsy. Do not sign cancellation unless cheque is handed over to you.

However, you may agree for handing over cheque and signing the cancellation deed at the same time in one sitting i.e. simultaneous. Have this agreement on mail or in some other written form. In case they resile from it after getting cancellation deed signed it is a case of cheating and criminal law gets involved apart from civil law.

Regards

Shubham Bhardwaj (Advocate)

District & Session Court, Chandigarh

Punjab & Haryana High Court, at Chandigarh

Disclaimer:- Opinion is only for guidance.

Dipro Hajra 18 December 2021

As, the query states, You should stick to your demand for getting the cheque in hand and then only sign the cancellation simaltaneosly, when they hand over the cheque. Have a written draft of the proposal stated. Give the cancellation fee as per agreement. State them that you would approach Rera2016 authorities if otherwise. The developer is entitled to forfiet the booking amount if you cancel without any valid reason. You are entitled to get the balance fee within 60 working days according to Rera2016 from the developer. Any, further delay you can go to Consumer forum Under section 12 of c.p act. But, it may take years to be disposed off.