Builder Can Only Forfeit 10% of Basic Sale Price In Case Of Breach Of Contract: NCDRC

The National Consumer Disputes Redressal Commission (NCDRC) held that a builder cannot forfeit more than 10% of the basic sale price upon cancellation of a flat booking due to the buyer's breach of contract. The case involved a dispute where the builder forfeited a significant amount exceeding 10% of the basic sale price. The NCDRC emphasized that such forfeitures must be reasonable and proportionate to the losses suffered by the builder. The commission referred to previous decisions establishing the principle that excessive forfeitures are unjust and against consumer rights under the Consumer Protection Act. This ruling underscores the importance of fair contractual terms in builder-buyer agreements to protect consumers from arbitrary financial penalties.