Builders can deduct deposit amount if buyers opt out without reason
Real Estate

Builders can deduct deposit amount if buyers opt out without reason

The Haryana Real Estate Regulatory Authority (Haryana RERA) has announced that if buyers want to withdraw from a project for no apparent reason, the builders may deduct or forfeit the deposit money as stipulated in the agreement.

The authority was hearing a lawsuit brought by property buyers against Godrej Premium Builders and Magic Info Solutions during the Godrej Summit project in sector 109, Gurugram.

According to the facts of the case, the builder-buyer agreement was signed in 2013 and possession was to be given in 48 months, with a six-month extension. The project was given out in 2017.

Buyers claimed in their complaint that the builder failed to provide a project status report as well as building plans, so they decided to withdraw from the project and sent a mail-in 2015 requesting cancellation and a refund of the deposited amount less 2% of the maximum within two months, which the builder accepted.

The builder, on the other hand, later sent a demand letter for the balance.

Godrej claimed in their lawsuit that because the apartment was booked through Magic Info Solutions, they are responsible for all acts related to the transaction.

The buyer booked the property to their satisfaction and chose a development linked plan, according to the legal counsel of Magic Info Solutions, Kapil Madan and Saurabh Gauba.

All project details were shared with all buyers including the complainant and the project was completed on time. Furthermore, all of the information was made available on the website.

According to the builder, they offered a refund after deducting 20% of the deposited amount as per the agreement. However, the buyers are not prepared to accept the same.

After hearing the case, the authority concluded that the builders were not at fault for not delivering possession on time, for failing to provide information about the project progress, or for misrepresenting any facts.

Buyers were unable to demonstrate what was promised to them, so they chose to cancel their unit and request a refund.

If the complainants choose to withdraw from the project, the builders have the right to deduct/forfeit the agreed-upon amount.

Image Source


Also read: UP-RERA rejects registration application of Supertech projects

Also read: Homebuyers body urges govt to implement RERA in West Bengal

The Haryana Real Estate Regulatory Authority (Haryana RERA) has announced that if buyers want to withdraw from a project for no apparent reason, the builders may deduct or forfeit the deposit money as stipulated in the agreement. The authority was hearing a lawsuit brought by property buyers against Godrej Premium Builders and Magic Info Solutions during the Godrej Summit project in sector 109, Gurugram. According to the facts of the case, the builder-buyer agreement was signed in 2013 and possession was to be given in 48 months, with a six-month extension. The project was given out in 2017. Buyers claimed in their complaint that the builder failed to provide a project status report as well as building plans, so they decided to withdraw from the project and sent a mail-in 2015 requesting cancellation and a refund of the deposited amount less 2% of the maximum within two months, which the builder accepted. The builder, on the other hand, later sent a demand letter for the balance. Godrej claimed in their lawsuit that because the apartment was booked through Magic Info Solutions, they are responsible for all acts related to the transaction. The buyer booked the property to their satisfaction and chose a development linked plan, according to the legal counsel of Magic Info Solutions, Kapil Madan and Saurabh Gauba. All project details were shared with all buyers including the complainant and the project was completed on time. Furthermore, all of the information was made available on the website. According to the builder, they offered a refund after deducting 20% of the deposited amount as per the agreement. However, the buyers are not prepared to accept the same. After hearing the case, the authority concluded that the builders were not at fault for not delivering possession on time, for failing to provide information about the project progress, or for misrepresenting any facts. Buyers were unable to demonstrate what was promised to them, so they chose to cancel their unit and request a refund. If the complainants choose to withdraw from the project, the builders have the right to deduct/forfeit the agreed-upon amount. Image Source Also read: UP-RERA rejects registration application of Supertech projects Also read: Homebuyers body urges govt to implement RERA in West Bengal

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code