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Developer not liable to pay refund if home owner cancels booking on his own: MahaRERA

Maharashtra Real Estate Regulatory Authority was hearing a complaint of home buyer seeking refund of his money after he cancelled the booking on his own.

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Maharashtra Real Estate Regulatory Authority (MahaRERA) dismissed a complaint of a home buyer seeking refund of his money after he cancelled the booking on his own. The authority stated that it doesn't get jurisdiction to ask a developer to refund the money unless any of the rules of the RERA act is violated. Cancelling a booking by a home buyer on his own because of lack of funds isn't a violation by developer. 

The Complainant Sachin Patil contended that he booked a flat in A-Wing of Marigold, Cosmos Enclave situated at Kasar, Vadavali, Thane (West) and paid Manish Khandelwal (the respondent) Rs 14,62 Lakh. Patil later cancelled the booking on his own and the Respondent paid him Rs 13.51 Lakh and now Patil  has been claiming the refund of the remaining amount. 

The Respondent submitted that Patil cancel the booking on his own and therefore, only the amount of service tax paid by him to the Government was not returned because after GST he would not get the refund of the service tax. He further stated that as per the agreement he was entitled to retain 5 per cent of the total cost of the flat but he re-paid the booking amount but still the Complainant wants the refund of full amount.

The authority heard both the parties on the point of maintainability of the complaint. B D Kapadnis, member, MahaRERA, while dismissing the complaint of Patil held, "Here, the complainant has cancelled the booking of his own. The respondent has brought to my notice the complainant's letter contending that because of financial difficulties he was cancelling the booking. In view of this situation I find that there is no expressed provision in the Real Estate (Regulation and Development) Acf 2016 under which this complaint can be entertained. So far as the refund of advances / payments are concerned, this Authority does not get jurisdiction to direct the Promoter to refund the same unless and until the case comes under one of the Sections such as Section 7,-l-l(5),-12,1,4,1,8 or 19 of the Act (delayed possession and others). The Complainant's case does not come under any of the Sections of the Act. Hence, the Authority does not get the jurisdiction to entertain this complaint. The complaint is dismissed."

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