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Can I Expect A Refund From The developer In A Pre Launch Project?

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Can I Expect A Refund From The developer In A Pre Launch Project?

Last updated: September 4 2016
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  • Can I Expect A Refund From The developer In A Pre Launch Project?

    Hi IREF Members,

    I Invested in a Project in Pre Launch stage of a reputed developer last year and have paid the first two demands of Rs. 10 Lac each.

    Unfortunately owing to a personal exigency, need to exit the project as the exigency has impacted the loan eligibility for the loan I was to avail for this property.

    Key points:
    • I am yet to fill up the application form
    • The project has now been launched
    • The project now does not have a very positive sentiment; however that is not the reason for sale
    I seek your advice and help on the following:
    • Can I expect a refund from the developer should I choose to surrender?
    • What are the exit possibilities in such a case?
    I have put in my lifetime's savings in this project and am currently under immense distress and even the property dealer through whom this was booked is refusing to take calls or show a clear picture.

    Your inputs, suggestions would be highly valuable.

    Regards,
    Amit
    Last edited January 3 2017, 12:54 PM.
  • #2

    #2

    Re : Can I Expect A Refund From The developer In A Pre Launch Project?

    Originally posted by Amit0108 View Post
    Hi IREF Members,

    I Invested in a Project in Pre Launch stage of a reputed developer last year and have paid the first two demands of Rs. 10 Lac each.

    Unfortunately owing to a personal exigency, need to exit the project as the exigency has impacted the loan eligibility for the loan I was to avail for this property.

    Key points:
    • I am yet to fill up the application form
    • The project has now been launched
    • The project now does not have a very positive sentiment; however that is not the reason for sale
    I seek your advice and help on the following:
    • Can I expect a refund from the developer should I choose to surrender?
    • What are the exit possibilities in such a case?
    I have put in my lifetime's savings in this project and am currently under immense distress and even the property dealer through whom this was booked is refusing to take calls or show a clear picture.

    Your inputs, suggestions would be highly valuable.

    Regards,
    Amit

    which project & which location and what rate ?
    NEVER BUY ANY PROPERTY BY SEEING COMMENTS ALWAYS VISIT LOCATION

    Comment

    • #3

      #3

      Re : Can I Expect A Refund From The developer In A Pre Launch Project?

      Bestech Park View Sanskruti - Sector 92, Gurgaon 5250 less discount

      Comment

      • #4

        #4

        Re : Can I Expect A Refund From The developer In A Pre Launch Project?

        Originally posted by Amit0108 View Post
        Hi IREF Members,

        I Invested in a Project in Pre Launch stage of a reputed developer last year and have paid the first two demands of Rs. 10 Lac each.

        Unfortunately owing to a personal exigency, need to exit the project as the exigency has impacted the loan eligibility for the loan I was to avail for this property.

        Key points:
        • I am yet to fill up the application form
        • The project has now been launched
        • The project now does not have a very positive sentiment; however that is not the reason for sale
        I seek your advice and help on the following:
        • Can I expect a refund from the developer should I choose to surrender?
        • What are the exit possibilities in such a case?
        I have put in my lifetime's savings in this project and am currently under immense distress and even the property dealer through whom this was booked is refusing to take calls or show a clear picture.

        Your inputs, suggestions would be highly valuable.

        Regards,
        Amit
        Since pre-launches are illegal, legally you can get your money back. It would also depend on the contract/agreement you signed with Bestech when you gave them payment of 10 lakhs. If there is an agreement, they would have mentioned all terms and conditions and whether refunds are part of it or not.
        In absence of an agreement, they can't encash your cheque. But you will have to consult a good lawyer if you want to pursue this legally. As you are aware of our judicial system, cases can get dragged for ages. I wouldn't recommend going this route unless it is the last resort.
        If broker is not responding, no harm in going to company office and finding out what they have to say. Has a unit already been allocated to you ? If it is not, then you can find out if they are willing to refund your money.
        I am not aware of current status of this project but if they haven't started excavation and you have already paid 30%, then rest assured it would be atleast another year or year an a half when you will be asked to pay first installment. Resale market is very dicey right now but if you can somehow manage one payment on your own (in worst case scenario) and put your unit on sale, you can atleast get back your principal amount.
        There are other tactics like delaying their demands on grounds of objecting to terms and conditions in BBA etc (which may or may not be suitable depending upon your personality as again it would need sound legal advice) to buy yourself some more time for selling this unit in resale (if everything else fails and you are unable to pay a demand).
        All in all, as long as you are willing to fight back one way or the other, no one can take away you hard earned money.
        Wishing you good luck and hope your problem gets solved soon and amicably.

        Comment

        • #5

          #5

          Re : Can I Expect A Refund From The developer In A Pre Launch Project?

          Originally posted by ggnkaaadmi View Post
          Since pre-launches are illegal, legally you can get your money back. All in all, as long as you are willing to fight back one way or the other, no one can take away you hard earned money.
          Wishing you good luck and hope your problem gets solved soon and amicably.
          Thankyou for your response. I don't have any document at hand currently and only have the photocopies of the cheques that I gave to Bestech. I had planned to buy this unit for a horizon of over 4-5 years with a potential of end use. But unfortunately need to exit owing to the issues highlighted in my original post.

          Every dealer I have spoken to has stated that the builder reserves the right to forefeit money. There is however no agreement that I have signed with the builder yet.

          Comment

          • #6

            #6

            Re : Can I Expect A Refund From The developer In A Pre Launch Project?

            Originally posted by Amit0108 View Post
            Thankyou for your response. I don't have any document at hand currently and only have the photocopies of the cheques that I gave to Bestech. I had planned to buy this unit for a horizon of over 4-5 years with a potential of end use. But unfortunately need to exit owing to the issues highlighted in my original post.

            Every dealer I have spoken to has stated that the builder reserves the right to forefeit money. There is however no agreement that I have signed with the builder yet.
            Brokers say that as their commission is dependent upon your staying with the builder. If you had signed an agreement with Bestech, then it might have proved true as well.
            In absence of an agreement, a good lawyer can come up with very good reasons why you had given money to Bestech. So much so, broker can be made party in the case as you can say he misled you in putting money in a Bestech's project for which you never received any papers and now Bestech is not returning money.
            As I said, legal recourse should be last resort and requires a lot of patience and strong will. But if you are willing, you can have a strong case.
            Consider other options and try to get this resolved amicably. In today's times it's better to avoid making enemies but yes, if your rights are at risk, teach these people such a lesson that they do not repeat such things with others.
            On another note, fault lies with you as well. If you had limited resources, you should have never gone for a project which was not even launched. You went with an assumption that project will be launched(which thankfully it did), then you assumed bank loan will be approved. What if any of these assumptions wouldn't have come true? You would have found yourself in a similar situation.
            My friend, always learn from these experiences. Greed has never favored anyone.

            Comment

            • #7

              #7

              Re : Can I Expect A Refund From The developer In A Pre Launch Project?

              Originally posted by Amit0108 View Post
              Thankyou for your response. I don't have any document at hand currently and only have the photocopies of the cheques that I gave to Bestech. I had planned to buy this unit for a horizon of over 4-5 years with a potential of end use. But unfortunately need to exit owing to the issues highlighted in my original post.

              Every dealer I have spoken to has stated that the builder reserves the right to forefeit money. There is however no agreement that I have signed with the builder yet.
              This project has already been launched in end of august so this is not under pre launch as if now.

              Builder have already allotted the units and by this time every one knows the tower and the unit number.

              BBA has also beeo provided by builder.

              My sincere advise to you is get the allotment letter, payment receipts of your cheques and see the bba and sign it and submit to the builder.

              then try to sell it in the market but first make sure to get the docs from your broker or go directly to builder. This will ensure that you will have unit alloted to your name

              pls also search and check bestech parkview thread in iref.

              thanks

              Comment

              • #8

                #8

                Re : Can I Expect A Refund From The developer In A Pre Launch Project?

                I also invested in same project at 5645/- less 3% discount, with the partnership one of my friend in my case also loan is not possible, one time i also approached to the bestech for cancellation and refund but they said that it is clearly mentioned in application form as well as BBA that 20% of basic sale will be for fitted in the case of cancellation, after that we both arranged next installment due and get the BBA but interest they levied is pending.I think you must have signed the application form in which their is a clause of forfeit the amt while giving the cheque, if not then you can go through legal proceedings.

                Comment

                • #9

                  #9

                  Re : Can I Expect A Refund From The developer In A Pre Launch Project?

                  Hi
                  I think u r stuck in similar situation as me.i also opted for bestech sanskruti and got ŕ
                  3BHK booked in prelaunch by paying 10 lacs.after the delay in launch ffor 5 months .
                  I went to bestech office to enquire about the payment
                  Plan but theay asked afor the next demand .due to some personal reason, non availability of funds I applied for withdrawl from this project.
                  Now again I went to bestech office yesterday to enquire for my refund.
                  But rather than answering they simply said that they would forfiet the money paid.
                  I am seriously thinking of going to consumer court now.
                  such mannerless person sitting in bestech!

                  Comment

                  • #10

                    #10

                    Re : Can I Expect A Refund From The developer In A Pre Launch Project?

                    Hi amit0108
                    Can u plz let me know about the status of ur refund? As I have two more people held up in similar case.if u think wetogether can do
                    Something plz feel free to reply.bcoz I dont think we would get our amount bak without takingŕ some seroious measure

                    Comment

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