Property Dispute – Builder not giving me refund against cancellation

Real Estate Property Disputes Commercial Property

I have a property Dispute – Builder is not willing  to give refund.

Question – I had booked a shop in pre-launch scheme of XYZ properties project. Due to some personal financial urgency’s, i had requested XYZ properties to cancel the booking and refund the money paid to them. They are saying that the money will not be refunded in any circumstances because as per the cancellation clause 25% of the total value of the shop will be charged for cancellation and amount paid till now is less than 25% of the total value hence it will be forefieted. Since i did not visit their office at the time of the booking, i had not given my consent on the above clause, but one of my co-workers who went for booking had signed on my behalf. This clause is also printed on the receipts they had given against the money paid to them. I had requested them that the amount paid is not small for me and i have some financial urgency’s due to which i need my money back but they simply refused to refund it.

Is the money paid to the builder (about 5 lakhs) will really be forefieted due to the clause mentioned by the builder or is there a way to get it back? please advise the course of action ?


Name :- Ajay Pal Singla Delhi

Solution Suggested


Your booking of the flat/shop is in pursuance of a contract, with the builder. So, both of you are bound by the terms of contract. You cannot go against the contract and having paid the money, you cannot hope that the buyer will return it as the contract is in his favour. Further, the contract is signed and you have made payment in acceptance of the contract. Hence, repudiation is difficult.

However, what is stated above is a plain reading. If the entire contract is read we can find out whether there is any means for getting out and solving your problem.

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.

This is also a better option and you can get back your money without rubbing shoulders.


  1. Ajay Pal Singla Delhi
    Is your agreement with the builder registered one ? If it is registered document, then the said clause is binding on you.
    In case the said agreement is not registered document, then the builder cannot forfeit the said amount. The course of action is first give a legal notice and in case the builder donot comply file a summary suit. You are bound to get back your money.
    Ms.Duraiya S.Retiwala
    Advocate High Court Bombay

  2. Dear sir,

    Supposed i have registered of x house and some body has problem form this can he make duplicate registry and sell this if yes or no please briefly explain.

  3. In any if u can prove that the person who sign on your behalf was done the act without ur free consent., then u. Can claim that there is no acceptance of yours for the clauses mentioned in the contract, and it is void contract.

  4. Dear Mr Ajay Pal Singh,

    There is nothing to worry as now as per the rules laid down by the Hon’ble supreme court and the practice followed by consumer dispute all the earnest money paid to the builder in cases of TDI are like a loan lent to the builder returnable at all times. The particular clause would be an arbitrary clause open to challenge. My advice please move ahead and file a consumer complaint. However as you had bought a shop which falls under commercial purpose that part has to be tackled articulately.

  5. my elder brother was working in army medical core at 2007, but he had been murdered by a civil party on his leave period of job but my question is how much compensation have been made on his service of 5 years from 2002 to 2007. in his army documents clearly showed my mother is, his nominee but a lady wrote a letter in army for claiming the compensation , now this case is pending in civil court and army said compensation will be given on the basis of civil court decision. please give me solution and your advise to helping me in this case.

  6. I booked a flat no.R-2/201/F,FLOOR FRIST WITH AN AREA OF 42 sq meter (452 sq.ft. )In GULMOHAR ESTATE-4 LAKE CITY RUDRAPUR on July 28, 2011 with booking amount Rs 50000/-(FIFTY THOUSAND ONLY)(RECEIPT NO.8730) the builder promise us to give the flat within a period of 12 months from the booking date.within 7 months I paid 70% but now all most 2 years gone but builder is not making flat I hav filed a case in consumers’ court suggest me so thing court give judgement in my favor .Please help

  7. I want to file a case against builder.

    I bought a flat on top floor in 2011 & it started leaking in rainy season in the same year. The builder carried out some repair work, however, it leaked again in next year. Again repair work was carried out, further it leaked next year again.
    The builder is unable to find out the cause & its been 3 years.

    Is there any legal step i can take against the builder for not preventing leaks. Please suggest.

  8. hi Duraiya mam, i have gone through with ur suggestion and want to appreciate that u really understand problem of everyone and try to make it solve. mam i m in big trouble now as same with Mr. Ajay . I have booked flat in uttam nagar delhi but now i am not in condition to continue with it due to financial crisis and also found that room sizes which i have told by builder is not same so feeling cheated and also helpless . i dont know what to do i have paid 3.9 laks rupees and being salaried person its gonna be dying situation for us if i dont get money back. So plz help me out mam what should i do. i ahve very limited timed cause i ll have to visit to builder today even by day before yesterday property dealer was ready to cancel our booking but they showed their actual faces to us yesterday.
    Plz help us.

  9. I booked a flat and paid 10% amount 6 mths back in clp plan. after that I had not received any demand from builder. Now my financial condition is not good and will not able to pay further.I approached the builder and broker to cancel the booking and submitted the NOC in builder office. but builder is fefusing to return the 10% amount. also I have not received any allotment agreement. Kindly advice and help

  10. I had booked a flat and registration has been done. Now i came to know that the flat is in refuge area and i m not able to get loan on it.Can i cancel the registration or is there any other better option.Pl. advise urgently. I m worried.

  11. Dear Sir,

    i have book on flat in navi mumbai by agent. i get notary MOU from agent ( sing by builder )dtd. 18 jan 2014. also taking 1 1/2 month time period for loan approval by any bank. i was given rs. 2,50,000 is booking amount. but suddenly builder call me for payment on dtd. 03 feb 2014. i told him i am asking time when booking was done. he refuse it. then i was ready to cancelled the dill. he also ready for that. that time. but now agent taking 35% deduction on booking amount.
    kindly request you please help me out n this isssue.

    sahil jadhav

  12. I booked a falt in pre launch of AIPL at Gurgaon and paid the booking amount within 3 months i received verbal demand and i paid another 10 lacs. The project was supposed to be launched in 4 months but was launched after a year and no work has started even after 2 years. They have also changed the specification and sizes, also changed the terms for issuance of allotment letter. I signed on consent which was on plain paper. I have written many emails but they have not refunded my money.
    Please advise if a suit can be filed against them. I have all receipts

  13. I booked a flat with a reputed national builder in Jaipur. Flat was costing Rs. 65 lacs. I paid Rs. 1 lac as advance booking amount. I planned to invest money from a sold property but that deal is still in limbo and will take some more time to materialise. Meanwhile sales guys of the builder were forcing to pay the entire amount as the deadline of handing over the flat approaches. I haven’t entered into an agreement with them as of now. I have only signed on the cost sheet. Now with the older rates flat is unsaleable because the rates have appreciated by 4 lacs within last 4 months. So decided to cancel the booking and demanded Rs. 1 lac back but the builder refused and forfeited the amount. Sales guys were earlier kept on harping that if the deal is cancelled then the booking amount will be refunded but now they backed away with their promise. Kindly suggest whether it is ok for me to ask for a refund under these circumstances? Is there any possibility of getting back the refund?

  14. Hello Sir / Madam,

    I paid Rs 10 lacs towards an upcoming project of a builder in Gurgaon. I signed an agreement called Expression of Interest. As per the agreement the builder will charge 15% of total flat cost in case of cancellation. But at the same time the agreement has a clause which binds builder to launch project in a timeline otherwise to refund booking amount with interest. I signed the agreement but did not fill up the refund clause. I was told that the project will be launched in 1 month time. The builder will fill up the clause and deliver a executed copy of the agreement to me. But the clause was not filled up and copy of it was not delivered to me. The project is not launched in one month time as promised. I look for your advice –
    1. Can I say that agreement was not fully executed?
    2. and can I file consumer court case to refund booking amount?


  15. I have booked a flat at bhiwadi and paid 20% of basic price but due to some financial problem I can’t able to pay further I asked builder to cancel the booking but he refused to refund my money.although I have not signed any contract with builder and till date builder don’t give me any payment receipts nor any allotment letter what can I do for tacking refund my earnest money?
    suresh sharma

  16. I hv cancelled my flat booking 2 months before. Only paid 10% amount to the builder and no agreement is done. I hv only 2 original receipt of payment. Builder office now saying that if u want to bookflat in other project , we will give u. I told them that i am not interesed in other property. They r buying time and not giving fix period of refund. Please guide me .

  17. Sir i had invested in a scheam in malad booked a flat nad made a cheque payment of rupee 225000 but unfotunately the project got canclled.
    Its now six years builder was not giving my money back.
    Recently i contacted him and told him i will file a complain against him.
    Now he is telling me to take my paid amount bak which he has used for 6 years i demanded intrest of 1.25% on my cheque payment.
    But he is telling he wont do any of this.
    I have a copy of agrement and checque detail also so please tell me what shuld i do?

  18. This is with reference to Booking of one flat with xyz group who are the members of CREDAI Bengal.

    I paid Rs 500000/ (Rupees Five Lacs Only) in two instalments & the details are as follows :

    First Cheaque Paid to xyz – Rs 300000/ (Rupees Three Lacs only ) dated 25.12.2012 of SBI (Cheaque No – 240388)
    Second Cheaque Paid to xyz– Rs 200000/ (Rupees Two Lacs only) dated 29.01.2013 of SBI (Cheaque No – 240389)

    Request for cancellation – 13th Feb 2014 (After a period of Thirteen Months)

    Original Documents Recd by Builder – 17th Feb 2014.

    Initially, they told that they will refund the booking amount along with 18% interest if they can not make the final sale Agreement within 9 months of time.
    As they failed to start the project by the stipulated time , I cancelled my booking of on 13TH Feb, 2014.

    I already send series of mails but yet to receive the Booking Amount along with Interest.
    Pls advice the next course of action.

  19. Hi, I booked a flat in Dharuhera 1.5 years back and paid 20% amount. Even after 1.5 years project is not launched yet. Now I submit my cancellation request to Builder and they replied in mail that we will refund amount in 40 days but now 60 days has been passed but still money is not yet refunded.I do have receipts and application form with me and all email communications with the builder in which they agree in written to refund my money.but still money is not yet refunded.

    Kindly advice how can i take legal action against the builder

  20. I booked 1 BHK in project named Mantra Meadows NH-24,Wave City Ghaziabad on dated 16-10-2013 and paid 1.5 Lakhs rupees by cheque 758828 dated 09/10/2013 as confirmed by company ( ref no mmr. 105 dated 16/10/2013).
    Due to not satisfying with project progress, layout and other conditions I did not accept allotment offer dated 27/03/2014 , I requested to cancel booking .Company agreed and issued cheque of refund (Rs 1.5 Lakhs ,Cheque no.094983,dated 30/06/2014,ICICI bank, Udyog Vihar ,Gurgaon, a/c no 114505000279,IFSC-ICIC0001145) on dated 12-MAY- 2014),But this cheque got bounced due to stop payment ,as bank said.
    I then requested so many times in Mantra Build Home Pvt. Ltd. / Adarsh Buildestate Ltd. offices and also emailed my request .I contacted Mr Sidharth ( mo.7877033305),Miss Anam Fatima( mo.9899074240,9810202719), Mr. Mehta (mo.9810209492),Mr Abhinav (9899902753) and also emailed.They answered to pay my money today or tomorrow or next day or next week but they never paid my money in any form.Pl help What can I do in this case and which court should I file this case either cil or consumer court.What are acts applied in this case?

  21. I had booked a flat and registration has been done. Begining they told SBI loan can be done Now i came to know that ,that’s not going to happen and i m not able to get loan on it.I have told them I want cancel and dropped the plan of going further due to some personal and financial problem ,even they agreed they return back my money wthin 2 weeks ,but now either they are responding to my calls and not able to catch them up.Please advise want needs to be done


  22. Dear Sir,
    I booked a floor in WRC (wave royal castle) in OCT 2013.
    I paid only 10% i.e rs 250000 through Maxgain dealer.
    now I want to cancel my booking for that Maxgain is asking a huge amount rs 50000to issue the NOC. I don think so there should be any charges for NOC.

    Please suggest.

  23. I booked a residencial flat with a builder XYZ. They delayed the project. As per payment schedule , EDC was construction linked. But they demanded EDC without starting the construction. I went to District Consumer forum . They decided no interest on EDC and 9%% interest on construction money. I requested them to tell me the amount payable by me as per decision of District Forum. The builder went to State Forum. His case was rejected. Then the builder went to National Consumer Forum. They threatened me on phone also. Now I do not want to pay because they can harass me. I want my money back and interest also if possible. Can I get my deposit.

  24. Sir,
    I recently had a similar case that I had presented in National commission on behalf of my client.
    Point to understand here is the meaning of ‘earnest money’, which is nothing but a token amount payable by the customer at the time of booking.
    Different builders may insert a certain percentage say 10%, 20% like 25% in your case in the name of earnest money. The clause may also say that at the time of cancellation, the earnest money will be forfieted.
    But according to a judgement delivered by National Commission (Bhagwanti Narula vs DLF), it is clearly mentioned that the cancellation amount cannot be more than 10%. Any excess amount deposited by the consumer in the name of earnest money must be refunded back by the builder to the customer.

    I guess this answers your query!

  25. Dear All,
    last two Year Ago i purchased some property in fulera in jaipur Raj. with payment term 10 EMI with IDC & EDC Charge , but i paid 8 EMI with IDC & EDC Charge , but now i have some problem with me so i can not pay EMI 2 , & i want to Cancelled this deal , but builder company tell cancellation charge deduct 25 % of total value. So I requested to all advisor please suggested me how can save this cancellation Amount Builder Name is 333 buildcon pvt ltd.
    please help me my Mobile No. 9718054590
    Rajesh Kumar

  26. Sir, I have booked a flat in Nov.2012 with a builder who was close to one of my friend. The flat cost Rs.26 Lacs and I paid him 9,01,000 1st 6 months and as I also did the Brick & Plaster work as labour contractor, my 3 Lacs Rs were been adjusted by the builder in the advance payment…This way I paid him 12,01,000 Rs by the end of 2013. I had got full receipts of the payment. But the builder did not made any agreement with me…I was pushing him to make a sale deed but he delayed and in the Feb 2014 he called me one fine day and said that he had sold my flat to someone else and was ready to give me my 12 Lacs rs back…i refused the money and asked for the flat. But he is not ready to give me the flat and neither any interest on my 12 Lacs. I know i can approach Consumer court, Civil court or file a criminal case… But i want to know in what way the Builder is bound to the consumer ? and Is the consumer in week spot if he had not done any agreement with him…?

  27. Hi,
    Willing to cancel Wave Royal Castle unit. Only 10% bookig amount paid in Nov 2013. Wave said cancilation are on hold!!! No agreement is done. Have paid Rs. 250000/- (two lac fifty thousand) of which I have receipt. Pls suggest all options to get money refunded. Broker has given NOC without any issue.


  28. Dear Sir,

    I booked a flat in Jan 2013 with Real Sales Infra, project named “Aawas Viva, New Panvel”. I paid agreement amount of Rs. 2,51,000/- and had agreement copy with me.
    But then due to some issue with NAINA area of Navi Mumbai airport coming up. The construction not started till date.
    Now due to some financial crisis, i want to cancel my booking and asking builder for refund, but they are refusing saying we dont have any such clause.
    Request all to please help me out in getting my money back, as i am in severe financial crisi.

    Thanks & Regards,
    Vishal Pratap Singh

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