In a recent development, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has intervened in a dispute between a couple and Raymond Ltd over the cancellation of a flat booking at Ten X Habitat, Raymond Realty Tower C in Thane. The couple, both doctors, had paid over Rs 6 lakh for a flat with a total consideration of approximately Rs 1.2 crore. When they decided to cancel the booking for personal reasons, Raymond Ltd forfeited the entire amount, citing a 10% deduction clause in the booking application form.
However, MahaRERA member Mahesh Pathak, in a decisive order, clarified that such a forfeiture is not legal under RERA provisions. Referring to a circular issued in August the previous year, Pathak highlighted that a promoter is allowed to forfeit only 2% of the consideration if the booking is canceled 61 days after the issuance of the allotment letter.
In line with this directive, MahaRERA instructed Raymond Ltd to refund the amount paid by the couple, deducting only 2% of the total flat consideration. Notably, this 2% deduction does not include statutory dues paid to the government and brokerage, if any.
Despite the couple’s plea for additional compensation and costs, MahaRERA did not find evidence of violations of sections 12 and 18 of the RERA by the developer. The ruling serves as a precedent, emphasizing the need for developers to adhere to RERA guidelines and the implications of improper cancellation clauses.
This Flat cancellation case underscores the significance of homebuyers understanding their rights under RERA and the importance of developers aligning their practices with regulatory directives to ensure fair and transparent transactions in the real estate market.