Deduction from booking amount


Following is my situation: I paid a booking amount of Rs. 2 lakhs to the builder in full faith that I will go ahead with the purchase of the house. Around 4 weeks after signing the booking form, I was provided with draft of the House buyers agreement. I found this agreement to be very one-sided, protecting mainly the builder's interests and caring little about the buyer's rights. Hence, I asked the builder to modify the clauses that are not acceptable to me, which the builder flatly refused. Following this, I have asked the booking to be cancelled and the booking amount to be refunded to me. The booking policy states that the builder will deduct Rs. 50,000/- on cancellation of booking after 7 days of signing the booking form.

My question: is the builder justified in deducting 50,000 from the booking amount?

Is it my mistake that I was provided with the buyers agreement after 4 weeks of signing the booking form? Had it been provided to me at the time of booking I would have not booked the house in the first place. Had it been provided to me within the week's time after the booking I would have still cancelled within the 7 days time. 

The builder is now refusing the return the entire Rs. 2 lakhs till I agree that he can deduct the Rs. 50,000. Is this justified under the law?

 
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Advocate

First of all you shouldn't have advanced amount before having a look into draft agreement.  Or at least you should have obtained a acknowledgement from the builder the actual date of delivering you the draft agreement.  The principle caveat emptor... meaning 'let the buyer beware' comes into operation.  It is your negligence and you should pay its price if you cannot prove that the actual draft was delivered to you only after 4 weeks of your advance payment.  

 

But if many others like you are affected in similar manner by the builder all of you unitedly can put up a fight against him before concerned authorities in respect of this malpractice by the builder or if you want to expose him play a sting operation with the help and sanction of authorities and expose him for punishment and recovery of your full amount. 

 
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ya i do accept gulldanpalli sir

 
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Dear Sir, Thanks for your assessment. The builder provided me an "Exit Interview Form" in which he has asked me to acknowledge the cancellation charges of Rs. 50,000/-. I refused to enter this amount as I felt it that it was unreasonable. The unreasonable terms in the agreement are the only reason that this deal fell through. Even then, I made it clear that I am interested in the purchase but with a modified buyers agreement, which the builder refused.  

Current status, the builder is refusing to return me even a single rupee. As per his booking policy he should have refunded me the booking amount within 30 days of cancellation, which he has not done. Can the builder refuse refund on grounds that I did not acknowledge it in his 'Exit Interview Form'? 

 
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Advocate

If you don't sign that exit form... it means that you have not communicated your cancellation to him officially.  He will not repay your advance and later when you don't pay him the scheduled installment he will declare you as a defaulter and proceed against you as per the agreement possibly forfeiting all your money already paid.  

 

You have three options:

Don't take any action - lose that 50K and come out signing that exit form.

Just ignore the unjust terms... and follow as all other customers of the builder are doing and finally own the flat.

Take action as i already suggested.

 

 

 

 
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Dear Sir,

I did sign the exit form and send it back to him immediately. I answered the questions in the form regarding reason for exit, etc. It had an entry "I understand that _____ amount  will be deducted..." where I mentioned 'Not applicable' and stated the reason why. 

I did not sign any other agreement so there is no question of defaulting on any payments. 

Since, I put 'Not applicable' in the deduction the builder is refusing to pay back any part of the booking amount.

 
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Advocate

He can just put that in a bin and simply say you have not made exit ie., cancelled the booking.  He will not take it on file.  You don't do things on your own.. take official help and expose him.

 
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Dear Sir,

I have sent the exit form through email. I have email record of all conversation with builder.

 
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Advocate

In the given situation, you gather the evidence together, consult a local lawyer and issue the builder a legal demand notice asking for refund of advance amount paid to him quoting that he failed to honor the oral agreement and instead is forcing you to sign an arbitral agreement which you reject/refuse since the same is not acceptable due to the conditions in a biased manner.  Let him give a reply, after which you resort to legal action against him either through a consumer forum or through civil court of law for recovery through a suit.

 
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once you have the record then you consult local lawyer for your help to issue legal notice ..once u have email n there reply u directly consult lawyer

 
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