Cancellation of Flat under construction after paying the token amt

Last week I booked a flat with a Reputed Builder by paying a token booking amount of 1.5 lacs. The Apartment is under construction and will be delivered in 2 + years. This was booked under the scheme of 10:90 where in 10% I had to give now and 90% at Possession. The Flat value is 1 Cr so as a initial booking I gave 1.5 lacs and told the developer that I will balance 8.5 lacs shortly. However there has been urgent need in family and I want to cancel my booking. Developer is asking for 1% of the Flat value (1cr) as a cancellation charge. Please advise if I have any recourse to get back my 1.5 lacs. Thanks

Answers (4)

120 votes

The amount could be recovered from developer. However consumer proceedings may not come in handy with regard to expeditious disposal. Irrespective of the fact we wish to see the documents executed between you and developer for appropriety remedy.

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59 votes

You might have in all probability issued a cheque for the amount or paid through account transfer. But you have not informed whether you have signed any agreement with the builder developer containing a term to the effect that such a penalty would be imposed on cancellation of booking ? if you have knowingly signed it, then you do not have a good case to recover it.

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114 votes

It is depending upon terms and conditions of an agreement/contract between you and builder. First disclose the details of contract and get suitable remedy for your grievances as per our legal opinion.

214 votes

Did you sign any booking related document /agreement which mentions regarding cancellation and fees to be charged? Any money charged beyond the terms agreed to can be disputed, you can send a legal notice to the builder and claim refund of the booking amount.

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