Raymond is directed by MahaRERA to deduct 2% of the total amount for the flat upon cancellation.

MUMBAI: Raymond Ltd. was ordered by the Maharashtra Real Estate Regulatory Authority (MahaRERA) to withhold only 2% of the entire consideration of an apartment without charging interest.

This is because the developer lost the entire sum of approximately Rs 6 lakh that a couple had paid after their reservation was canceled.

It referenced a recent MahaRERA circular that says that in the event that an allottee cancels a booking, the promoter is only entitled to forfeit 2% of the total.

For a total consideration of about Rs 1.2 crore, the couple had reserved a flat in Ten X Habitat, Raymond Realty Tower C, which is located at J K Gram in Thane. They had also paid the developer more than Rs 6 lakh. The developer lost the Rs 6 lakh they had paid when the couple decided to cancel and requested a refund.

The doctors who filed the complaint had reserved the apartment in May 2019 while they were working in the UK. They had to cancel the reservation in August 2019 for private reasons.

The developer claimed it was entitled to forfeit 10% of the total amount as stated in the booking application form, so it forfeited the entire amount. Represented by attorney Sunil Kewalramani, the couple filed a MahaRERA claim, requesting a reimbursement of the money paid, along with costs and damages.

According to MahaRERA member Mahesh Pathak’s ruling, the developer’s forfeiture is not appropriate or lawful under RERA’s provisions.

Pathak added that if a booking is canceled 61 days after the allotment letter is issued, the promoter is only required to forfeit 2% of the consideration for the flat, as per a circular that MahaRERA issued in August of last year regarding the required format for allotment letters.

The authority ordered the developer to return 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, on the grounds that the forfeiture of the amount paid by the complainants is not in accordance with the MahaRERA circular.

The regulatory body dismissed the home buyers’ claim for a refund of the money paid, along with costs and compensation, because they were unable to provide evidence of the developer’s violation of sections 12 and 18 of the RERA.