Gagandeep Kumar (MGR) 07 October 2022

Builder not returning money

I gave 1500000/- advance to a builder in 2014 for underconstruction flat through cheque. However, no sale agreement was signed.

I have followed up for return through phone.

Builder is not returning money.He has blocked my number.

Do I have any legal recourse for getting my amount back.Can a case be filed for getting my money back

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Quick Summary

If a builder is refusing to return your advance payment for a property, even without a signed sale agreement, you may still have legal recourse. Options include filing a complaint with RERA or the consumer forum, as the default to complete the structure can be considered a continuing breach. Issuing a legal notice through an advocate is often a good first step, as many cases are settled amicably after this. In some situations, filing an FIR under sections 406 & 420 of the IPC might also be considered, especially if there's a lack of formal agreement.

6 Replies

M V Gupta (Advocate) 07 October 2022

File complaint in RERA OR BEFORE CONSUMER FORUM.

Sourav Das (Advocate Supreme Court of India) 07 October 2022

Issue legal notice through advocate to builder, asking for refund along with interest. Then complaint before consumer forum or RERA.

Generally these kind of matters are settled amicably after issuing legal notice, do not worry.

Call or mail me for assistance.

Advocate Bhartesh goyal (advocate) 07 October 2022

Rs 1500000/- had been advanced by you to builder in 2014 towards purchase of flat but no sale agreement was executed now after 8 years you can't recover legally said amount as limitation to recover the said amount has expired so better lodge FIR against builder u/sec 406&420 of IPC.

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Pradipta Nath (Advocate) 07 October 2022

Since you have not executed any agreement with the builder, legal recourse lies by filing criminal as well as summary suit cum compensation suit. In case you have any communications with the builder and you can establish consumer service provider relationship, you can file case at consumer commission.

M V Gupta (Advocate) 08 October 2022

in the case of advances given to builders for the purchase of flats that are under construction, default to complete the structure is a continuing breach and a complaint before the RERA or the consumer forum can be filed. The usual time limit of three years would not come into play. There are a plethora of cases where the RERA and the consumer forums have entertained complaints and adjudicated them.. ,

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