Builder not refunding the booking amount on house cancellation in Mumbai
3 months ago
I had booked an under construction property on 09-Dec-2023 by paying token amount of 3 lacs.
On that builder builder got an application signed which dictated terms and conditions of forfeit of the amount in event of cancellation even before registration.
On 13-Dec-23 , I asked the builder to cancel the booking but he denied the refund.
Post this I paid 12lacs to the builder.
Due to unfortunate situation I had to go with cancellation on 18-Jan-24 and I asked for refund again but the builder is not ready to return a penny.
The registration for the flat is not yet done, ive been asking for a refund but they arent ready to do so and they are saying they will take 10% as penalty charges if I want to cancel.
According to Maharera rules if I request for cancellation within 15 days of booking, I am eligible for full refund.
What tenure post cancellation will be considered by Maharera here Pls help what can I do here to get refund.
A.Dear Client,
The RERA empowers the homebuyer to cancel an allotment of the apartment booked with a builder at any stage even if there is no default on the part of the developer. It binds the builder to return the money collected from the buyers within 45 days of such cancellation after deducting the booking amount. Without an agreement to sell, the builder can accept up to 10% of the amount of cost of the flat as booking money and if you cancel the booking without the builder's fault, the builder is entitled to forfeit the booking amount since they have experienced a loss due to the booking cancellation. It is cited in a recent MahaRERA circular, which states a promoter/builder is allowed to forfeit just 2% of the amount in case of cancellation of a booking by an allottee. MahaRERA issued a circular in August last year regarding the prescribed format for allotment letters, which permitted the promoter to forfeit only 2% of the consideration amount if the booking is cancelled 61 days after issuance of the allotment letter. Section 31 of the RERA Act or Real Estate (Regulation and Development) Act, 2016 allows any aggrieved person to file a complaint with the Authority or the adjudicating officer for any violation or contravention of the provisions of this Act or the rules and regulations made thereunder against any promoter or builder. You can file a complaint against the Builder for deficiency in service and unfair trade practice before the Consumer Court under Sec.35 of the Consumer Compensation Act, 2019 serving a legal notice claiming compensation for harassment and cost of litigation and/or file a civil suit for specific performance against the Builder/Developer before a Civil Court for appropriate relief in the matter. The complaint should be filed before the Consumer Court within two years from the date of the cause of action. It may be noted that you cannot raise your complaint/claim simultaneously before the Consumer Court and RERA for the same cause of action at a time. Reach out to an experienced Advocate handling Consumer cases and RERA cases for guidance and steps.
The RERA empowers the homebuyer to cancel an allotment of the apartment booked with a builder at any stage even if there is no default on the part of the developer. It binds the builder to return the money collected from the buyers within 45 days of such cancellation after deducting the booking amount. Without an agreement to sell, the builder can accept up to 10% of the amount of cost of the flat as booking money and if you cancel the booking without the builder's fault, the builder is entitled to forfeit the booking amount since they have experienced a loss due to the booking cancellation. It is cited in a recent MahaRERA circular, which states a promoter/builder is allowed to forfeit just 2% of the amount in case of cancellation of a booking by an allottee. MahaRERA issued a circular in August last year regarding the prescribed format for allotment letters, which permitted the promoter to forfeit only 2% of the consideration amount if the booking is cancelled 61 days after issuance of the allotment letter. Section 31 of the RERA Act or Real Estate (Regulation and Development) Act, 2016 allows any aggrieved person to file a complaint with the Authority or the adjudicating officer for any violation or contravention of the provisions of this Act or the rules and regulations made thereunder against any promoter or builder. You can file a complaint against the Builder for deficiency in service and unfair trade practice before the Consumer Court under Sec.35 of the Consumer Compensation Act, 2019 serving a legal notice claiming compensation for harassment and cost of litigation and/or file a civil suit for specific performance against the Builder/Developer before a Civil Court for appropriate relief in the matter. The complaint should be filed before the Consumer Court within two years from the date of the cause of action. It may be noted that you cannot raise your complaint/claim simultaneously before the Consumer Court and RERA for the same cause of action at a time. Reach out to an experienced Advocate handling Consumer cases and RERA cases for guidance and steps.
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A.Dear Client,
In your situation, it's important to adhere to the rules and regulations set by Maharera for property transactions. Since you requested the cancellation within 15 days of booking, you are generally entitled to a full refund as per Maharera rules. The builder insisting on a 10% penalty despite the cancellation falling within the stipulated period seems to contradict the regulations.
To address this issue, consider the following steps:
1. Document your communication with the builder, ensuring you have evidence of your cancellation request and their response.
2. Consult with a legal professional familiar with real estate and Maharera regulations to assess your case.
3. If the builder remains uncooperative, you may file a complaint with Maharera, providing them with the relevant details, communication, and evidence.
A legal professional can guide you through the specifics of Maharera rules and help you navigate the process effectively to seek a refund in accordance with the regulations.
Thankyou
In your situation, it's important to adhere to the rules and regulations set by Maharera for property transactions. Since you requested the cancellation within 15 days of booking, you are generally entitled to a full refund as per Maharera rules. The builder insisting on a 10% penalty despite the cancellation falling within the stipulated period seems to contradict the regulations.
To address this issue, consider the following steps:
1. Document your communication with the builder, ensuring you have evidence of your cancellation request and their response.
2. Consult with a legal professional familiar with real estate and Maharera regulations to assess your case.
3. If the builder remains uncooperative, you may file a complaint with Maharera, providing them with the relevant details, communication, and evidence.
A legal professional can guide you through the specifics of Maharera rules and help you navigate the process effectively to seek a refund in accordance with the regulations.
Thankyou
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