Has mou got legal standing


I would like to know if MoU to purchase a land from a land developer has got legal binding.

My Situation is following, I entered into an MoU with a land developer where It was stated that the land developer has applied for BMRDA approval to develop a land. Once the approval is obtained the land developer will enter into the agreement to sell the land.

The MoU was done after paying some amount (4 lakhs) to the developer. There was a clause also in the MoU that if developer does not obtain the approval within 6 months he will return the money taken for MoU with penalty.

I am trying to cancel the deal and asking the developer to return my money back but he is not willing to return.

What are the options I have to get my money back. The payment was done through cheque and for the payment receipt was also obtained from the developer.

Kindly advise. I am mentally disturbed and fear that I may loose my hard earned money.


Lawyer in Hyderabad.wats app no.9989324294

  1. memorandum of understanding (MOU or MoU) is a formal agreement between two or more parties. Companies and organizations can use MOUs to establish official partnerships. MOUs are not legally binding but they carry a degree of seriousness and mutual respect, stronger than a gentlemen's agreement.

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You can take the MOU seriously, moreover its a cheque transaction,. otherwise  you can file a case for recovery also, though it would take some time to realise the money.

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Since the developer has failed to keep up his commitment as per MOU, he may be dragged to consumer court for deficiency of service alternately if you wish to get back your money alone, you may file a money recovery suit too. For both the things or either of a thing, you have to issue a mandatory legal notice placing your demand, matter of fact, the developer may respond to your legal notice itself where there are chances of settlement or you will come to know what to do next. Take the help of a local lawyer and proceed legally as per his further advise on the issue.




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