Withdrawal and Cancellation of Allotment from AFWHO Housing Schemes

• Withdrawing or cancelling an allotment from an AFWHO housing scheme is considered a serious step, which varies with specific policies and procedures at different stages of the housing scheme.
• As the construction of dwelling units is demand-driven and as per the preferences of the allottees, it must be kept in mind that such activities would definitely have a bearing on the scheme in its entirety and its time frame. Withdrawal or cancellation procedure is also not uniform and differs according to whether it is during the Demand Survey Stage, Scheme Registration Stage, or Post-Construction Stage.

The Demand Survey is an initial step where interested parties register their interest in participation in a housing scheme. Applicants, at this point, pay a small deposit to have their interest protected in the scheme. Withdrawal and cancellation in this stage are handled with flexibility, and the procedure is very straightforward.

• Withdrawal Pre- Scheme Launch: If an applicant wants to withdraw after registering for the Demand Survey but before the actual launch of the housing scheme, they are eligible for a refund of the amount paid for the Demand Survey.Refund Deduction: An administrative fee of Rs. 10,000/- plus GST will be deducted, and the balance will be refunded to the applicant.No Interest on Refund: Please note that the Demand Survey amount is refunded without any interest, and the refund is processed after the deduction of the administrative charges
• Refund in Case of Inordinate Delay or Scheme Cancellation: In case there is a considerable delay in launching the scheme or if the scheme is finally abandoned by AFWHO for any reason, the society may, at its discretion, refund the Demand Survey amount to applicants, also without any interest, after deducting the Membership fee.This refund can be processed even if there is no formal withdrawal request from the applicant, especially when the scheme is cancelled or significantly delayed.

 Once the scheme is launched and registered, the applicant moves to the Scheme Registration Stage, which is more formal and involves commitment to purchase a dwelling unit. In case the applicant withdraws after registration but before construction commences, the following terms apply:

• Withdrawal after registration, before construction commencement:  If the applicant desires to cancel his or her application at the time they have enlisted in the scheme but even before construction of the structure starts, he or she will receive back the deposited amount for the dwelling unit.

1. Deduction Refund: From the actual cost of the booked dwelling unit, 5% is deducted for administrative and processing costs and the rest of the amount shall be remitted back to the applicant.
2. No Interest on Refund: Just like in the Demand Survey stage, the refund will not carry interest but just offset the balance after deducting the prescribed fee.

• Withdrawal upon Start of Construction:

1. Once the development of the housing scheme has taken place, no refund will be allowed upon withdrawal. For by then, much in the way of planning as well as financial commitments to its construction and delivery would have occurred. This could disrupt the funding and development schedules of the projects by virtue of the applicant withdrawing his or her application at that particular point in time.
2. Final Decision on Withdrawal: Withdrawal at this stage requires an application as the withdrawal is going to be more cumbersome for both financial and logical reasons once the building work has commenced.

• Withdrawal Scheme: Penalty/ Refund Procedure. Withdrawal before Signing of Agreement for Sale:- In case of premature withdrawal by an applicant i.e. before signing of Agreement for Sale, the Application Money will be refunded by Developer after deducting of 5% of Application Money as handling charges and no interest will be paid.

1. Withdrawal after Signing of Agreement for Sale: – After signing of Agreement for Sale, withdrawal penalty will be imposed by the builder as per Agreement.

1. No refund or withdrawal is allowed after the construction is complete and the dwelling units are ready for possession. The applicant, at this stage, is contractually obligated to take possession of the unit, and the society will proceed with formal handover procedures.
2. No Withdrawal or Refund: Withdrawals are not allowed after the unit is ready for possession with the allottee being communicated. The allottee must take the possession of the unit, and any decision not to take it will be considered as a violation of the agreement.

• Refunds: Refunds, if applicable, are always without interest and are processed after deductions as outlined in the policy for each stage.
• Membership Fee: Membership fee at the Demand Survey stage or 5% deduction at the Scheme Registration stage are non-refundable and cover the administrative costs incurred during registration and application processes.
• Commitment after Construction: After the beginning of construction, AFWHO considers the allottee’s commitment to the housing scheme to be binding. This does not allow withdrawal or cancellation at that particular stage, and the amount already paid will be forfeited if the allottee doesn’t want to go for a unit.
• Transfer and Re-sale: After paying 50 % of the unit cost the allottee is free to transfer or sell the units according to AFWHO rules