Cancellation Concern: ₹1 Lakh Booking Amount at Risk Even Though Advance Not Paid
Nov 30, 2025
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Real Estate Law
► On 24th November, we booked an under-construction apartment and paid ₹1,00,000 as the booking amount, along with a 10% advance cheque (approximately ₹15 lakhs). As per the agreement, it was mentioned that if the buyer cancels after paying the 10% advance, the builder would deduct 10% of the advance amount as cancellation charges.
On 28th November, the builder returned our advance cheque because the linked bank account did not have sufficient funds. We were planning to issue a new cheque. However, on 29th November, after reviewing the project details more carefully, we realized that the project completion timeline is close to five years, which does not align with our expectations and current requirements. Therefore, we decided not to move ahead with the purchase.
My concern now is that since the 10% advance was never actually paid or realized, I am worried that I may lose the ₹1 lakh booking amount. The builder had informed us earlier that the booking amount would be fully refundable within 10 days if only the booking was done and the advance amount was not paid.
Given that the advance cheque was never encashed, is there anything I can do to ensure I receive a full refund of the ₹1 lakh booking amount? This situation is causing me a lot of stress, and I want to understand my options clearly.
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