The Maharashtra Real Estate Regulatory Authority (MahaRERA) has directed Raymond Ltd to deduct just 2% of the total consideration of a flat without any interest, after the developer forfeited the entire amount of about Rs 6 lakh paid by a couple, following the cancellation of their booking. It cited a recent MahaRERA circular, which states a promoter is allowed to forfeit just 2% of the amount in case of cancellation of booking by an allottee.
The couple had booked a flat in Ten X Habitat, Raymond Realty Tower C located at J K Gram in Thane, for a total consideration of approximately Rs 1.2 crore and paid over Rs 6 lakh to the developer. When the couple chose to cancel the booking and sought a refund, the developer forfeited Rs 6 lakh paid by them.
The complainant couple, who are doctors, had booked the flat in May 2019 when they were employed in the UK. They cancelled the booking in August 2019 due to personal reasons. The developer forfeited the entire amount, claiming it was entitled to forfeit 10% of the total sum in accordance with the booking application form. The couple, represented by advocate Sunil Kewalramani, moved MahaRERA seeking refund of the amount paid with cost and compensation.
MahaRERA member Mahesh Pathak in his order stated such forfeiture by the developer is not legal and proper as per provisions of RERA.
Pathak also said MahaRERA had issued a circular in August last year regarding the prescribed format for allotment letters, which permitted the promoter to forfeit only 2% of the consideration of a flat, if the booking is cancelled 61 days after issuance of the allotment letter.
Considering the forfeiture of the amount paid by the complainants is not in consonance with the circular issued by MahaRERA, the authority directed the developer to refund the money paid by the complainants without any interest, after deducting 2% of the total consideration of the flat, excluding the statutory dues paid to the government and brokerage, if any.
The regulatory body did not consider the claim made by the home buyers for refund of the amount paid along with compensation and cost, as they failed to prove any violation of sections 12 and 18 of the RERA by the developer.
