November 29, 2023: Citing a recent Maharashtra Real Estate Regulatory Authority (MahaRERA) circular that indicates that a developer can only deduct 2% of the entire property amount in the case of booking cancellation by a home buyer, the MahaRERA issued an order directing Raymond Realty to take away 2% of the overall flat cost without charging interest to an allottee.
The case in point is about a flat booking in Ten X Habitat, Raymond Realty Tower C, J K Gram, Thane Mumbai, whose value was around Rs 1.2 crore. The homebuyers had booked the flat by paying a booking amount of Rs 6 lakh. On cancellation of the property, the developer refused to refund the money saying it had the right to forfeit 10% of the total project value as per booking application form terms and conditions. A complaint with RERA Maharashtra was registered and the compliance body ruled that keeping the entire booking amount for flat cancellation is illegal under MahaRERA provisions.
According to MahaRERA order, as mentioned in a table in clause 9 of the allotment letter, mentioned are the number of days and the amount that can be deducted.
Amount allowed by MahaRERA that promoter can deduct
| Number of days after booking the unit | Amount to be deducted |
| Within 15 days | No amount can be deducted |
| 16 to 30 days | 1 % of the flat consideration value |
| 31 to 60 days | 1.5 % of the flat consideration value |
| Above 61 days | 2 % of the flat consideration value |
| Got any questions or point of view on our article? We would love to hear from you. Write to our Editor-in-Chief Jhumur Ghosh at jhumur.ghosh1@housing.com |
