by THO
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has directed a real estate developer in Thane, near Mumbai, to refund the amount paid as deposit by the homebuyer after deducting 1% of the total flat value.
The buyer had cancelled the booking of a ₹67 lakh apartment citing financial difficulties.
The case
The homebuyer, Pulkesh G Majumdar, booked a flat worth ₹67 lakh and paid ₹1 lakh for the booking on April 3, 2022. However, the homebuyer cancelled the booking within 45 days due to financial issues. The developer had allegedly forfeited the entire booking amount after the booking was cancelled.
The developer contended before MahaRERA that the entire amount paid for the booking was forfeited according to the forfeiture clause mentioned in the booking application form. However, the homebuyer mentioned that the developer sent an email agreeing to refund the entire amount after the complainant cancelled the booking.
In its submissions with MahaRERA, the developer also contended that the homebuyer had filed a complaint against the wrong entity, Puraniks Builders. However, the booking was made with Sai Pushp Enterprises. Hence, this complaint is not maintainable. MahaRERA, in the order, said that the issue can be ignored in compliance with the principles of natural justice.
The case pertains to the real estate developer of Ikigai Phase-1 by Puranik Tokyo Bay Private Limited.
Can a developer deduct the entire booking amount?
The developer had allegedly forfeited 1.5% of the total amount of the apartment, which was ₹67 lakh.
The MahaRERA said that such forfeiture by the developer (which is 1.5% of the total consideration of the said flat) is not legal as per the provisions of the RERA, as there is no explicit provision under RERA to forfeit such an amount.
MahaRERA stated that the order issued by MahaRERA in August 2022 permits the promoter (developer) to forfeit 1% in case of any cancellation done by the allottee within 45 days. Hence, MahaRERA has ruled that it applies to transactions made before August 2022, considering there was no prescribed format earlier.
Also Read: Can homebuyers seek refund of booking amount from a real estate developer in case of job loss?
Stating the above, MahaRERA, in a December 23, 2024 order, directed the developer to refund the money paid by the homebuyer towards the consideration of the said flat without any interest after deducting 1% of the total consideration (value) of the said flat (excluding the statutory dues paid to the government/ brokerage, if any) within 45 days from the date of the order.
An email has been sent to the developer. The story will be updated if a response is received.
