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SAMEER Mullan   26 January 2022

Token advance amount not returned


We liked a villa and dealing was done through agent and builder manager. According to the Bank details given by them I transferred Rs 50000 as token advance to Property owner to confirm our genuinity. Before transferring they promised us on verbal agreement that amount will be returned if we are unable to proceed due to any reasons. But even after fund transfer they did not confirm the transaction even after 3 days and also they did not provide us owners contact details and asked to deposit 50k more and later 2 lakh to get it done on stamp paper .and then it was 5 lakh . They dint even give us documents to get legal opinion. We felt there was no transparency in the dealing and also due to delay in sale of one of our property we called off the deal within 10 days of amount transfer. They even took our bank details to return token advance amount. But it’s been more than a month and they have blocked our phone numbers and not responding well and putting the blame on us That due to us owner lost other interested buyers. Not even once did the owner tried to contact us. And we don't know who the person is.  What am I supposed to do? Can the owner forfeit the advance amount even after agreeing to repay if deal canceled? 

 1 Replies

Megha   01 February 2022


Typically, the seller forfeits the token amount paid, if the property hasn't been purchased unless an agreement stating the contrary has been entered into by the parties involved.  And usually, the token amoungt is directly paid to the seller himself.  However, in the instant case, since the amount amount was paid to the broker and prima-facie seems like the broker has engaged in a mischief, you may consider exploring the following remedies.

The first point of action in this case should be to register an FIR with due proof of payments, and acknowledgment of payment, if any, by way of message, e-receipt (in case of online transfer).

Subsequently, you may consider filing a case of cheating under sectionn 415 of the Indian Penal Code, 1806.

Best regards,

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