The Maharashtra Real Estate Regulatory Authority (MahaRERA) has instructed Raymond to deduct a mere 2% from the overall consideration of a flat without charging any interest. This directive comes after the developer seized the entire sum of approximately Rs 6 lakh that a couple had paid following the cancellation of their booking. The basis for this decision is a recent MahaRERA circular, which specifies that a promoter can only forfeit 2% of the amount in the event of a booking cancellation by an allottee.

The couple, who had initially booked a flat in Ten X Habitat, Raymond Realty Tower C situated at J K Gram in Thane, for a total consideration of about Rs 10.2 million, had paid over Rs 6 lakh to the developer. Upon opting to cancel the booking and requesting a refund, the developer forfeited the Rs 6 lakh paid by the couple.

The couple, both doctors, had made the reservation in May 2019 while working in the UK and decided to cancel it in August 2019 due to personal reasons. The developer, however, claimed the right to forfeit 10% of the total sum, citing the terms of the booking application form. In response, the couple, represented by advocate Sunil Kewalramani, approached MahaRERA to seek a refund of the amount paid along with additional costs and compensation.

In the order, MahaRERA member Mahesh Pathak stated that the developer's forfeiture of the entire amount was neither legal nor appropriate according to the provisions of RERA.