Browsing Tag

booking amount forfeiture

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MahaRERA orders new developer to hand over flat and pay interest despite claiming it never received payment, holding both builders jointly liable in Mumbai Evergreen Woods case.

Booked a Flat but Didn’t Sign Agreement? MahaRERA Says Builder Can’t Keep Your Money

MahaRERA has ruled that builders cannot forfeit the entire booking amount if a homebuyer cancels before signing an agreement for sale. Allowing only a 2% deduction, the Authority reinforced consumer protection principles under RERA.
MahaRERA has ruled that a booking application form does not by itself create a binding sale contract and directed Mahindra Happinest Developers to refund ₹1.50 lakh to a homebuyer, holding that forfeiture was illegal as the booking was never completed.

Booking Form Alone Does Not Create Binding Sale Contract: MahaRERA Orders Refund to Homebuyer

MahaRERA has ruled that a booking application form does not by itself create a binding sale contract and directed Mahindra Happinest Developers to refund ₹1.50 lakh to a homebuyer, holding that forfeiture was illegal as the booking was never completed.
In a key February 2026 decision, MahaREAT ruled that homebuyers withdrawing from delayed projects under RERA are entitled to interest from the promoter's receipt of payments—not from later default dates—overturning a MahaRERA order in the Mullaji vs. Onyx Builders case involving stalled projects in Kurla West, Mumbai.

MahaRERA Rules Developer Cannot Forfeit Entire Booking Amount Upon Cancellation

In a major ruling safeguarding homebuyers, MahaRERA has held that developers cannot forfeit the entire booking amount on cancellation. The Authority ordered refund to the buyer after deducting only 1.5% of the unit cost, directing interest from September 13, 2024.