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Builder offering refund in place of possession

 As per the agreement, we have paid Rs. 4620000 and have to pay the balance. When we requested the builder to provide the documents to avail housing loan, he is now refusing to sell the flat to us. He now shares that he has no intention of selling the flat to us and would return our money. We have no intention of taking back our money but are inclined to have our own roof in that locality. How should we proceed further

Answers (3)


If u have entered in to an agreement of sale, u can file a suit for specific performance and pray the court to direct the builder to receive the balance consideration and execute the sale deed. Simultaneously u can obtain an interim order to restrain the builder from alienating/creating third party rights till the disposal of the suit.

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You can file a case on the basis of the agreement you both have signed. You have a case under Consumer Act as well as under Contract asking the Civil Court to direct him to register the flat and give possession to you. But the second option will involve court fee to you.

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1) file complaint against builder before consumer forum and seek orders to direct builder to register sale deed in your favour and to deliver possession within stipulated period

2) also claim litigation costs and compensation for mental torture undergone by you
3) You have to issue a legal notice to the builder to register the flat on your name mentioning about all those transactions that have been completed so far in this regard and give him a date for registration.
If the builder fails to comply with the demand made in the notice, you may drag him to civil court with a suit for specific relief and also to the consumer court for compensation for the deficiency of service and also for causing mental stress.


I fully understand your problem. Though legally you have recourse to file Civil suit or Criminal suit, the fastest and cost effective option would be to approach the Consumer Forum.

So in order to initiate any legal action (irrespective of civil / criminal / consumer forum)
First issue notices to the builder and then if you do not receive reply/ favourable action by the builder within 30 days, you should initiate appropriate legal action

The Remedies available to you if you use the legal approach through consumer forum are

a) Demand payment of interest at the rate of 11% or whatever rate of interest the builder has mentioned in the agreement of sale in case of you(buyer) delaying payment. Interest will be computed from the date of you making your payments to the builder AND

b) Costs of alternative accommodation from the date of possession as envisaged at the time of agreement of sale AND

c) Compensation for Mental Stress and Trauma.

d) Penalties for Default. All projects that were due to be delivered before 2012, but have not been completed as of date are now classified under the head " Default" . Heavy penalties are ordered to be paid by the builder to home owner in case of Default and penalty can be claimed in lieu of compensation.

Of late consumer courts have been aggressive and have been awarding orders in favour of Buyers (see above remedies).

Many developers such as Shobha, Parsavanath, Unitech and even good companies like L&T have been facing the music from the consumer courts for project delays and deficiency of service.

The jurisdiction of consumer court is based on the value of property

If amount is more than Rs. 20 Lakhs but below Rs. 1 Crore, case is to be filed at State Consumer Disputes Redressal Commission ...... better consult an advocate at the earliest

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