Home | Legal Advice | Property Law | Claim refund of money against the builder under RERA

Claim refund of money against the builder under RERA

Estimated Reading Time:

I booked a flat in a development project situated in Lucknow, Uttar Pradesh. The builder said that the project would complete in July 2016. However, I booked the said flat in the year 2014, but it is still under construction. The builder refuses to return my hard-earned money. More importantly, I have paid the total amount in the year 2017.

Now the worst scenario is the builder says that he has no money to complete this project and the LDA had restricted further construction. I want to file a complaint in RERA for return of the total amount. Whether the claim will be maintainable because I booked the flat before the commencement of RERA.

Question from: Lucknow

Your complaint is maintainable under Section 18 of The Real Estate (Regulation And Development) Act, 2016. However, you have booked the flat in the year 2014, but the project is still pending. The RERA came into force on 1st May 2017, and according to Section 3, all the ongoing projects come in its jurisdiction. Your builder did not get the completion certificate from the concerned authority. Therefore he cannot claim that his project is out of the RERA jurisdiction.

You may file a complaint before the RERA authority under section 18. This section empowers the buyer to claim a refund of the amount which he has paid to the builder and compensation for any other loss. This section also entitles the buyer to get simple interest upon the paid amount.

As far as the application of RERA provisions is concerned, it does not matter that you booked the flat in the year 2014 and paid the total amount in the year 2017. Section 3, 12141819, 71(1) and 79 of the Real Estate (Regulation And Development) Act, 2016, have retrospective effect. If a project is incomplete or does not get the completion certificate, then the RERA will applicable thereon.

Hence, you can file a complaint before the RERA authority under section 18 for the refund and compensation. If you do not want the refund of total amount and project is likely to complete shortly, then you are entitled to get simple interest on the amount. The interest will accrue from the date mentioned in the agreement for completion and transfer of possession of flat. Generally, the court orders lending rate of interest of SBI + 2 % simple interest on the investment. You are entitled to get interest from the date mentioned in the contract for giving possession of the flat.

Latest Advice

Builder is missing how to file a complaint against him?

Question: The Builder is not present at his place of residence therefore the summon has not been served upon him. How to file a complaint against a builder who is missing from his address? A complaint petition was lodged to RERA, ASSAM against Promoter vide Case...

Builder cheated by making false promise: Can I claim refund?

Question: Builder cheated by making a false promise of giving possession in November 2022. However, possession is expected in 2025. I have booked an apartment in Chennai. During my site visit, I was welcomed by a salesperson who explained to me details about the...

Possession without occupancy certificate

Occupancy certificate or completion certificate is an important document because it proves that the flat is fit for occupancy or living. It also proves that the builder has constructed the builder as per the permission granted by the competent authority. If a flat buyer takes possession in absence of occupancy certificate it may cause harm to his property rights.

Builder giving possession in another apartment

Builder cannot give possession in another apartment because it is a breach of agreement to sell. When the builder has signed an agreement to construct a particular flat for the buyer, later on he cannot unanimously decide to give possession in another apartment. The buyer has to decide whether he wants possession or claim refund of money from the builder.

Kanoonirai established in 2014. It provides a facility to consult a lawyer through online media, telephonic consultation and video conferencing.

Contact

mail[at]kanoonirai.com
+91-91400-4[nine][six]54