Paritosh 03 July 2017

Refund against booking amount: no agreement signed till now

Refund against Booking amount: No Agreement signed till now..

There are couple of projects being developed right next to each other in Gurgaon by same builder. I booked a flat in first project ("booking form filled", NO agreement signed) and paid the booking amount of 1 Lakh.
After a while I decided to move to the other property (same developer). We finalized flat, and paid around 6 lakhs more for the transfer and to complete 10% ( we were told that the Service tax is increasing so pay befpre 30th June). However, we came to know that there were incorrect information shared by the channel partner and builder, and we refused to move ahead with the agreement (for second flat, "we have NOT signed any BOOKING form or agreement). Now builder is threatening to charge 10% of the entire flat cost for cancelling the booking. Is there a way we can get a refund and save this 10% cancellation charge.
Is it legal for a builder to charge 10% under RERA or any other law?

Reply Follow

2 Replies

Arjun Kohli 03 July 2017

First of all, I hope you had received the receipt for both the times you submitted such amounts. It is always foolish to make any payment without a proper receipt. You apparently have your booking form from the first application but the second is more serious here as it involves a larger amount.

Further, there are provisions for cancellation of agreement under RERA but you need to make your grounds for refusal very clear. If it's valid enough legally, only then are you eligible to cancel the booking. The deduction charges on cancellation are proportional to the builder's fault, however, I believe there would be a minimum threshold of deduction for developing charges, etc.

Ultimately, I can suggest you to engage a legal counsel to share complete facts of the case and go through the local rules and regulations of RERA, as well as to help you through the process of recovery of these payments or to compel specific performance.

Kumar Doab (FIN) 03 July 2017

Since you want what oher party is not willing to offer it shall be better to get all docs on record examined by a very able local senior counsel of unshakable repute and integrity specializing in consumer matters.............

You may examine Haryana rules;

https://www.naredco.in/notifications.asp?links=gnc1

https://www.naredco.in/notification/pdfs/Draft%20English%20Rules%20Vetted_HRERA_28.04.2017.pdf

https://www.tribuneindia.com/news/haryana/govt-set-to-notify-diluted-rera/421015.html