Do I have legal standing if builder refuses refund? - Property Hotline

Expert: Aditya Pratap, Advocate, APA

Question: I booked a 2BHK at pre-launch at Pune paying 50% of the amount in September 2014. The builder did not receive sanction till 2015. I haven’t done the registration of the property. Due to personal issues, I gave a cancellation letter to the company in May 2016; I was then told that the refund will be after 90 days. 7 months have passed but I haven’t yet got the refund. Now, the builder is saying that the refund will be given to me once the cancelled flat is sold to some other buyer. Do I have legal standing on this issue?

Answer: Section 4 of MOFA states that the builder shall not enter into any sale agreement unless it’s registered. Further, it also states any advance over 50% requires registration of the agreement. In your case, it is a criminal offense. You can file a police complaint. When the builder is not ready to refund, you can send a legal notice to the builder which will force him to refund you along with the taxes paid. I would advise you to not just file a normal complaint but a civil and criminal actions case against the builder under MOFA and also approach RERA.

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