Builders cannot refuse refund in stuck projects

If you have purchased a flat in an under-construction project but it is unlikely to be completed because of legal wrangles or has been declared unauthorised, the builder cannot withhold your refund.

If you have purchased a flat in an under-construction project but it is unlikely to be completed because of legal wrangles or has been declared unauthorised, the builder cannot withhold your refund.

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A couple who had bought two flats in an under-construction building in Chembur in 2001 but could neither get possession, nor their money back, got reprieve from the district consumer forum, which directed the builder to return the Rs6.43 lakh booking amount, with 9% interest.

Bharat Jani and his wife Vilas had bought two flats in a building being constructed by Mahalaxmi Bindu Developers, but the project was later declared unauthorised by the civic body.

The builder said the matter was in the high court and assured the project will be completed, but the forum noted it is unlikely.