I booked a 3 BHK flat in Noida Extension back in June 2010 for 25 lakhs. I made a payment of 7 lakhs in June 2011. The builder hasn’t started construction of Tower 18 yet, even though it was supposed to begin in 2013. Now they’re sending demand letters. When I asked why they’re asking for more money despite not starting construction as per the payment plan, they said they have the right to send these letters. They kept sending demands and eventually issued a legal notice, canceling my flat in March 2013. I haven’t received my 7 lakh payment back. What legal options do I have?

Apni Law
Apni Law
Law Forum › Category: Consumer Court › I booked a 3 BHK flat in Noida Extension back in June 2010 for 25 lakhs. I made a payment of 7 lakhs in June 2011. The builder hasn’t started construction of Tower 18 yet, even though it was supposed to begin in 2013. Now they’re sending demand letters. When I asked why they’re asking for more money despite not starting construction as per the payment plan, they said they have the right to send these letters. They kept sending demands and eventually issued a legal notice, canceling my flat in March 2013. I haven’t received my 7 lakh payment back. What legal options do I have?
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Apni Law Staff asked 6 months ago

I booked a 3 BHK flat in Noida Extension back in June 2010 for 25 lakhs. I made a payment of 7 lakhs in June 2011. The builder hasn’t started construction of Tower 18 yet, even though it was supposed to begin in 2013. Now they’re sending demand letters. When I asked why they’re asking for more money despite not starting construction as per the payment plan, they said they have the right to send these letters. They kept sending demands and eventually issued a legal notice, canceling my flat in March 2013. I haven’t received my 7 lakh payment back. What legal options do I have?

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Best Answer

Apni Law Staff answered 6 months ago

You have grounds to challenge the builder’s cancellation and demand refund. The builder’s failure to start construction as per the payment plan and their subsequent cancellation without providing you with a proper opportunity to rectify the alleged default are actionable under the Real Estate (Regulation and Development) Act, 2016 and relevant Consumer Protection laws. You can file a complaint with the Real Estate Regulatory Authority (RERA) seeking a refund of your payment and compensation for the delay.

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