Unveiling MahaRERA’s Decision:
The couple secured a residence in Tower C of Ten X Habitat, Raymond Realty, situated in J K Gram, Thane. The total transaction amounted to around Rs 1.2 crore, and they made payments exceeding Rs 6 lakh to the developer.
MahaRERA has instructed Raymond Ltd to deduct a mere 2% from the total flat consideration, excluding interest. This directive comes in response to the developer retaining the full amount of approximately Rs 6 lakh paid by a couple upon the cancellation of their booking. It cited a recent MahaRERA circular, which states that a promoter is allowed to forfeit only 2% of the amount in case of cancellation of booking by an allottee.
Opting for a residence in Tower C of Ten X Habitat, Raymond Realty, positioned in J K Gram, Thane, the couple committed to a total consideration of about Rs 1.2 crore. Subsequently, they disbursed over Rs 6 lakh to the developer. However, upon deciding to cancel their booking and pursuing a refund, the developer retained the entire Rs 6 lakh paid by the couple.
The couple, both medical professionals, initiated the flat booking in May 2019 while they were employed in the UK. Citing personal reasons, they opted to cancel the booking by August 2019. However, the developer withheld the entire sum, asserting its entitlement to forfeit 10% of the total amount per the booking application form. Represented by advocate Sunil Kewalramani, the couple approached MahaRERA, seeking a refund of the paid amount along with costs and compensation.
To this, the MahaRERA member Mahesh Pathak is his order stated that such forfeiture by the developer is not legal and valid as per the provisions of RERA. He also referred a circular which was issued by MahaRERA in August last year. This circular contained details regarding the prescribed format for allotment letters and it also cited that promoter is liable to forfeit only 2% of the consideration of a flat if the booking is cancelled after 61 days of issuance of allotment letter.
Observing that the forfeiture of the complainants' payment contradicted the guidelines outlined in the MahaRERA circular, the authority mandated the developer to reimburse the complainants' funds. This refund, devoid of any interest, would involve a deduction of 2% from the total flat consideration, excluding statutory dues paid to the government and potential brokerage fees.
The regulatory body dismissed the home buyers' request for a refund, compensation, and costs, as they were unable to substantiate any violations of Sections 12 and 18 of RERA by the developer.
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