Looking for refund from Builder

Q: We booked a flat in Kolkata that is due to be handed in early/mid 2018. However, the location feels far to us now & we want to go back on the deal. The contract says the breach would amount to some Rs.50,000 penalty.

We have paid 7lacs till now & ready to bear the 50k penalty.

My question is, will this be a smooth process or is there a chance for the builder company to cheat us or extort more than 50k? Just looking for any experience/advice on the matter before I approach the builder company regarding this. Any helpful response is appreciated.

Arijit Mallick, Kolkata

27th August 2016

Legal in Kolkata

builder & buyer pact

cancellation of booking of flat

refund of booking amount from builder

builder & buyer agreement

Follow Discussion

Also see discussions for

Kolkata Legal Legal in Kolkata

Replies (3)

can you reply back at birlok@gmail.com to discuss further. we can form a group and discuss. Thanks

Imran, Bangalore

23rd September 2016

Comment

Hi friends!!
What is worrying for the buyers is that there is no norm that the builders are required to follow while cancelling bookings. while some builders deduct 10% of the booking amount, others quote the same figure on the cost of property. Yet others deduct up to 20%, whereas smaller developers may forfeit the entire booking amount. In your case it is clearly stated that if you cancelled your booking than Rs. 50000 will be considered as forfeited. So, better talk to builder in this matter.

chandramohan das, Kolkata

29th August 2016

Comment

If the contract say that breach would amount to some of Rs.50000 as penalty. Further, the contract is signed and you have made payment in acceptance of the contract. Hence, refund is very difficult.

Also, there is another way out. You can get a buyer and ask the property to be registered in that buyer’s name and you can get the money paid by you to the builder. I think this will be a better option and you can get back your money without any difficulties.

Indrajit Paul, Kolkata

29th August 2016

Comment

Hi,
In this situation only builder can help you out. If they are Grade-A builder then he must look into this matter and if they are small builders then it is very difficult for you to return it back. I can only suggest you to visit the developer's office and talk to him.

Shantanu Chatterjee, Kolkata

29th August 2016