I recently booked a flat under construction, paying around 10-11 lakhs through cheques. I also gave separate cheques for income tax and service tax. Now, I want to cancel the booking, but the builder is charging a 50,000 cancellation fee and refusing to refund the service tax and income tax, which amounts to roughly 1 lakh. I have all the payment receipts from the builder. The booking agreement didn’t mention any cancellation charges. What are my legal options? How do I proceed with this situation?

Apni Law
Apni Law
Law Forum › Category: Property › I recently booked a flat under construction, paying around 10-11 lakhs through cheques. I also gave separate cheques for income tax and service tax. Now, I want to cancel the booking, but the builder is charging a 50,000 cancellation fee and refusing to refund the service tax and income tax, which amounts to roughly 1 lakh. I have all the payment receipts from the builder. The booking agreement didn’t mention any cancellation charges. What are my legal options? How do I proceed with this situation?
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Apni Law Staff asked 1 year ago

I recently booked a flat under construction, paying around 10-11 lakhs through cheques. I also gave separate cheques for income tax and service tax. Now, I want to cancel the booking, but the builder is charging a 50,000 cancellation fee and refusing to refund the service tax and income tax, which amounts to roughly 1 lakh. I have all the payment receipts from the builder. The booking agreement didn’t mention any cancellation charges. What are my legal options? How do I proceed with this situation?

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Best Answer

Apni Law Staff answered 1 year ago

You can legally challenge the builder’s cancellation fee as the booking agreement doesn’t mention it. You can approach the consumer forum or file a civil suit to recover the service tax and income tax paid. It’s advisable to consult a lawyer to understand your specific legal options and proceed accordingly.

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