Builder not refunding advance deposit


Dear Sir /Madam, I was planning to purchase a flat in delhi. I visited one flat and found satisfactory. I was asked to pay 12lac so that agreement to sale can be prepared and rest 35 lac loan can be availed. Since agreement to sale is prerequisite for home loan, I paid 12 lacs through RTGS to the builder. During technical evaluation of bank, it was found that it did not follow DDA guidelines and does not have requisite approval so my loan was rejected. I asked the builder to cancel my booking and refund me the advance amount. In agreement to sale, it is mentioned that either of them right to cancel and full refund will be made. Then builder paid me 5 lacs after a month and asked one more month for rest 7 lacs amount. Now it is more than 7 month and still he is giving me date and delaying. After I insisted a lot, recently he paid 1 lac. He is still holding 6 lac. Pl tell how can I get my hard earned money back. I had taken personal loan to pay him advance or token amount.

Answers (5)


120 votes

You must approach the district consumer forum of your jurisdiction as soon as possible. The builder is liable to pay the compensation with interest.

In normal cases, aggrieved persons demand for an 18%. However, if the flat purchased was for investment purposes, consumer forum may not be the appropriate forum. Only a civil court can entertain if this was not purchased for living.


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156 votes

From your query it appears u have already exhausted all amicable channels to resolve your dispute.

In my opinion, you should now send him a legal notice and seek recovery of your balance amount with interest.

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139 votes

You may file police complaint for breach of trust against said builder to get your hard earned money back and/or go to consumer forum of jurisdiction with your grievances. It is clear that builder is guilty, because you entered into agreement in presumption that he had followed DDA guidelines. You must not suffer for fault of builder.

139 votes

You are entitled to serve a legal notice to the Builder for recovery of 6 lacs. Subsequently, you can file suit for recovery before the court. Since the amount to be refunded is admitted, you may get a decree for recovery from the court.

331 votes

Dear Client, you will have to get a legal notice served to the builder seeking remaining amount of six lakh along with interest. If despite that he refuses to return the amount you can file a civil recovery suit or consumer case or even a criminal complaint against the builder.

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