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Builder is not returning my booking amount

Shivendra Pratap Singh

Advocate

17/07/2019

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Hello sir, I have booked a flat in Lucknow, the builder said that the time of booking that the project will accomplish in the year 2017. After taking faith upon him, I paid one lakh rupees as booking amount in the year 2015. When I visited the site in the year July 2018 for clarification that what development is going on, then I found that the property is still about to commence.

Thereafter, I made some inquiry and found that the said land is a disputed property and a court case is pending in the district court. I said the builder to return my booking amount but he said it is impossible. sir, how could I get the booking amount.

Question from: Uttar Pradesh

First of all, you should send him a notice of revocation of the agreement. The builder is not in a position to perform the contract as the result of the pending court case. According to the agreement, the due date of completion of the project is the year 2017. But still, no work has commenced on the site. Consequently, there is indeed uncertainty about the accomplishment of this project.

The party to the contract has the right to cancel the agreement and seek himself discharge in those circumstances. Section 39 of the contract act permit the party to revoke the contract if another party became disable to perform his promise. If you still stay with the contract, your right may be prejudiced.

Thus, in the above circumstance, sending a legal notice becomes essential. In the notice to the builder, you might give him a reasonable time to refund the booking amount. When he failed to repay the booking amount in that stipulated time, then you can file a complaint before the RERA regulatory authority.

As per the facts of your case, this project comes under the jurisdiction of RERA Authority. Because at the time of the enforcement date of RERA, this project was incomplete. Section 18 of the Real Estate Regulation and Development Act 2016 entitles the buyer to take a refund of his booking amount in addition to any other money he paid to the builder.

shivendra pratap singh advocate

Shivendra Pratap Singh

Advocate

Practising lawyer in the High Court Lucknow. You can consult on Criminal, Civil, Matrimonial, Writ, Service matters, Property, Revenue and RERA related issues.

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