Allotee not paid the Promoter according to Agreement for Sale hence money refunded without any interest after deduction of 10% cancellation charges: MP RERA

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By Legal Cell

In the matter of Kailash Tilwani V/s Prabhakar Construction Company (M-MDD-18-0173) Order dated: 24th April 2018 by Madhya Pradesh RERA allowed the builder to refund the amount with deduction of 10%.

Respondent builder claimed that the Complainant had not paid according to the terms of the Agreement for Sale. The onus is on the Allotee under Section 19 to pay according to the terms of the Agreement for Sale. The Complainant said that he had entered into registered agreement for sale with the Respondent on 5th Aug 2014 in District Raisen of MP. The Respondent said that he constructed 4 floor but the allottee has not paid according to the schedule of the Agreement for Sale hence not maintainable.

MP RERA Ordered: Since the Allottee has paid only 20% where as the construction is almost 60% over, hence Respondent is eligible to cancel the agreement and booking. Respondent can deduct 10% of cancellation charges and return the money to the Complainant without any interest.

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