Can builder deduct 25% for cancellation, and is interest payable?
During our visit, the manager said that RERA registration is expected within a week as they had already applied, and possession would be in 2026. Trusting him, we made a payment of ₹16 lakhs to the builder. However, the RERA number came after 5 months, with possession now showing in 2030. We cannot wait for 6 years and have decided to cancel the booking. The builder says he will deduct 25% of the amount, but this was not mentioned when booking. We haven't signed the agreement or accepted the allotment letter. Can the builder legally deduct 25%, and is the builder liable to pay interest since he has been holding our money for 6 months?
Since no agreement was signed and the builder misinformed you, you may be entitled to cancel the booking without penalty. The builder cannot deduct 25% unless stated in a signed agreement. You may also claim interest for holding your payment for an extended period. For further legal assistance contact us on our helpline number.
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