1 Answer
Dear Client,
They cannot forfeit your money in this manner. As per Section 13 of the RERA Act, a promoter cannot accept more than 10% of the cost of the apartment as advance or application fee. That too, without first entering into a written agreement for sale and registering the same. Since you do not have the allotment letter and no agreement for sale has been signed or received, they do not have a strong legal position to keep the money. On forfeiture itself the advance money can be forfeited as earnest money only if the contract terms are clear and explicit. A mere advance cannot be forfeited unless it is truly intended as a guarantee for due performance of the contract. So, if your signed booking form does not clearly say that the amount is earnest money forfeitable on your cancellation, their claim to forfeit the whole 10% can be challenged by you.
At this stage, you can consider sending a written cancellation or refund demand, with the help of a lawyer. Through this, ask them to produce the document and clause relied upon for the forfeiture. Ensure that all the communications are in writing. If they still refuse, you can file a complaint under Section 31 of the RERA before the UP-RERA Authority or Adjudicating Officer because any aggrieved person may file a complaint for violation of RERA or its rules. You may also seek remedy under the Consumer Protection Act. The consumer route is available through different levels of commission depending on the amount paid and total claim. I hope this helps you in solving your issue. If you have any further queries, please feel free to reach out.