Can builder forfeit booking amount after giving notice 4 months later?

To advise you correctly we need to examine the Agreement executed between you and the builder. Generally, all such contracts provide an exit clause which mentions the liability of either party in case of default. When you wish to terminate a contract, then you need to follow the procedure prescribed in the contract.

The Supreme Court has recently held that the earnest money can be forfeited in full or in part by the builder if the earnest money was in the nature of payment to continue with the construction. However, if the payment was just part payment, then the same cannot be forfeited.

Therefore, it needs to be assessed as to which category your case falls in.

The option available to you is to send a Legal notice seeking recovery of the amount paid by you within 30 days and replying to his demand notice, making reference to the email sent by you earlier. If the payment is not made within 30 days, then you can initiate a recovery suit in the competent court.

Kindly contact us for any further details and action.