Answer By law4u team
The Real Estate (Regulation and Development) Act, 2016 (RERA) addresses issues related to the cancellation of bookings and refunds primarily through the following provisions: Cancellation by the Allottee: Section 18 of RERA provides that if the promoter fails to complete or deliver the possession of the apartment, plot, or building as per the agreement, the allottee has the right to withdraw from the project. In such cases, the allottee is entitled to a refund of the entire amount paid along with interest. This ensures that if the project is delayed or not completed as agreed, the allottee can opt out and receive their money back. Cancellation by the Promoter: Section 13 states that if the promoter intends to cancel the allotment of a unit, they must provide the allottee with a refund of the entire amount paid along with interest, unless the allottee has been in default. The promoter must follow due process and cannot unilaterally cancel bookings without cause. Interest on Refunds: Under Section 12, if there is a delay in handing over the possession of the property or in fulfilling any other obligations, the promoter is liable to pay interest on the amount paid by the allottee. This provision ensures that the allottee is compensated for any delays or issues in the project. Compensation for Delay: Section 19 mandates that if the promoter fails to deliver possession as per the agreement, they must compensate the allottee for the delay, including interest on the amounts paid. Regulation of Booking Amounts: Section 11 ensures that the promoter cannot demand more than 10% of the cost of the property as an advance before signing the sale agreement. This helps protect the interests of the allottee and ensures that they are not pressured into making large upfront payments. Overall, RERA provides a framework for both promoters and allottees to handle cancellations and refunds fairly, aiming to balance the interests of both parties and ensure transparency in real estate transactions.
