Apni Law Staff asked 1 year ago
I booked a flat under construction and paid a booking amount of ₹9 Lakhs. After reviewing the draft agreement, I found several clauses unacceptable and the builder refused to make changes. I decided to cancel the booking. The booking form mentioned a ₹1 Lakh cancellation fee. It’s been a month since I requested cancellation, but the builder says he’ll refund only ₹8 Lakhs, deducting the ₹1 Lakh cancellation fee and the tax receipts, which haven’t been refunded by the government yet. Can I recover the ₹1 Lakh deducted for cancellation? Should I wait for the government to refund the tax receipts before receiving the remaining amount?
Best Answer
Apni Law Staff answered 1 year ago
Under Indian law, the builder can only deduct the cancellation fee mentioned in the agreement, which is ₹1 Lakh. The remaining ₹8 Lakhs should be refunded without deducting the tax receipts, as the builder is responsible for the refund of those. You should not wait for the government to refund the tax receipts before receiving the remaining amount.
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