Can real estate developers deduct money if a homebuyer cancels a flat booking within two days due to home loan concerns?
India, June 10 -- The Maharashtra Real Estate Regulatory Authority (MahaRERA) has upheld a developer's right to deduct cancellation charges from a homebuyer's booking amount, even when the buyer cancelled the booking within 2 days due to financial constraints and uncertainty over home loan approval.
Dismissing the buyer's plea for a full refund, MahaRERA ruled that the deduction was valid because it was made in accordance with the project's cancellation policy, as disclosed on the MahaRERA website through a deviation report submitted by the developer.
A homebuyer had booked a 2 BHK apartment in May 2024 for Rs.89.86 lakh. The homebuyer paid a booking amount of Rs.1 lakh and received an allotment letter on the same day. However, two days...
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