No Refund After Homebuyer Cites Wife’s Job Loss As Reason For Cancelling Booking

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A Homebuyer was informed that his claim towards seeking refund cannot be considered by MahaRERA. The homebuyer had cancelled the booking due to his personal reasons.

By Varun Singh

A homebuyer recently approached MahaRERA seeking refund for the booking amount that was paid by him to the builder.

Homebuyer Pranav Kelkar, had booked a flat on the 15th floor of the project Tokyo Bay Phase-1 in Thane by Sai Pushp Enterprises.

Kelkar booked the flat on November 11, 2019, for a total consideration of Rs 29.56 lakh. At the time of booking he paid an amount of Rs 56.678 towards the booking amount.

However, after booking his wife lost her job and hence he was not in position to borrow loan. Hence on November 23, 2019, he informed the developer for cancellation of the booking and sought refund of the entire booking amount.

Kelkar’s complaint was that he hadn’t received the refund of the booking amount, though the builder had sold the flat to other allottee.

The builder on the other hand resisted the claims of Kelkar. The builder stated that the homebuyer during booking signed the booking application form. Thereafter on November 23, 2019 Kelkar informed him that he wants to cancel the booking and asked for refund without specifying any reasons.

The builder stated that as per clause No 16 of the booking application form signed by Kelkar, since the homebuyer has cancelled the booking due to his personal reasons before issuance of allotment letter and within a period of 45 days from the date of booking, the amount paid buy him stands forfeited.

The builder also informed MahaRERA that till date no registered agreement for sale has been executed with respect to the homebuyers flat.

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The builder pointed outed that there was no violation of any of the provisions of RERA and hence the homebuyer is not entitled to seek any relief from MahaRERA.

Dr Vijay Satbir Singh, Member 1, MahaRERA, examined the arguments and was of the view that as per RERA the builder is liable to refund the amount to the allottee on demand, if the agreed date of possession mentioned on the agreement for sale has lapsed.

“However, in the present case, there is no agreement of sale between the parties showing agreed date of possession. Hence, the homebuyer’s case is untenable,” noted Singh.

Singh further pointed out that the homebuyer is entitled to seek refund of the booking amount in case the developer violates the provision section 12 of RERA. In this case the homebuyer didn’t contend that he was given any misleading information at the time of booking whereby the homebuyer suffered any loss.

“Hence the claim of the homebuyer under section 12 of the RERA towards the refund of the booking amount cannot be considered.”

Dr Vijay Satbir Singh, Member 1, MahaRERA

Singh also noted in his order that the homebuyer due to his own personal reasons cancelled the booking.

MahaRERA therefore felt that there is no violation of any of the provision of RERA as stated by the builder.

Dismissing the complaint, MahaRERA, noted, that in absence of any allotment letter/agreement for sale, the parties are government under the provisions of the booking application form signed by both.

Also Read: MahaRERA Secy To Deal Non Compliance Application

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