Delayed Builder Refund Recovery in Commercial Property Booking – RERA Delhi Intervention
Background
In August 2023, I attended an event where an agent introduced me to a commercial project called “XYZ Chowk” located at Chandni Chowk, Delhi, developed by OH Pvt. Ltd.. During the event, I decided to book a virtual commercial unit in the project.
Between August and September 2023, I paid approximately ₹15,00,000 in three instalments to the developer.
However, due to financial difficulties, I decided to cancel the booking and formally sent an email to the developer in requesting cancellation and refund within few days.
Issue Faced
Despite cancelling the booking and submitting the required refund formalities, the refund was not processed.
I was asked by the developer’s office to submit additional refund documents in February 2024, and I was informed that the refund would be processed within 60 days.
However, even after the expiry of the promised period, the refund remained pending. My repeated follow-ups through phone calls, emails, and office visits resulted only in verbal responses stating that the matter was “under process.”
Another major concern was that no formal agreement had been executed and payment receipts were not properly issued, which further complicated the situation.
Even after nearly a year from cancellation, the refund was still not issued.
Legal Action
With legal assistance, the matter was escalated before the Delhi Real Estate Regulatory Authority under the provisions of the Real Estate (Regulation and Development) Act, 2016.
The case involved tentatively the following:
- Documentation of payment proof and correspondence
- Filing of a complaint before the regulatory authority
- Legal representation and follow-up proceedings etc.
Outcome
Following the legal proceedings, the authority passed an order directing the developer to refund the booking amount.
Through this intervention, I was finally able to recover the ₹15,00,000 that had remained stuck for a long period, bringing closure to the matter.
Takeaway
This case highlights how buyers and investors facing delays in refund from developers can seek relief through RERA, and how timely legal action can help recover blocked funds.
