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MahaRERA order to allow developers to cut over 2% amount from buyers in booking cancellation

Earlier, the deduction in case of cancellation of booking by home buyer was capped at 2% by MahaRERA.

Representational image.

Representational image.

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has issued a revised order that will pave the way for developers to increase the deduction amount in case of a booking cancellation, which was earlier capped at 2 percent.

In July, MahaRERA had issued an order prescribing the number of days and amount that can be deducted in case of cancellation of a booking. According to this, no amount could be deducted for cancellation within 15 days of booking, 1 percent of the cost of the said unit between 16 days to 30 days, 1.5 percent between 31 days to 60 days and 2 percent for cancellation over 61 days.

In this context, the MahaRERA in the July order had stated, "The Table in Clause 9 of the allotment letter prescribes the minimum period (number of days) within which the booking can be cancelled and the upper limit of the percentage of the amount to be deducted in case the allottee desires to cancel the booking."

The order added, "The promoter may if the promoter so chooses, increase the number of days within which the booking can be cancelled as well as decrease the percentage of the amount to be deducted in the event of cancellation of the booking, in the allotment letter prescribed."