A new way to trap buyers | MahaRERA approval to builder arbitrariness on booking cancellation?

A new way to trap buyers | MahaRERA approval to builder arbitrariness on booking cancellation?

03 Jan 2025

 

Are Buyers Being Trapped?

 

Have you booked a home, but had to cancel it due to unavoidable reasons? When it comes to refunds, some developers impose unfair charges, leaving buyers helpless. MahaRERA was expected to protect buyers, but is it truly happening?

 

MahaRERA Rules vs Developers’ Rules

 

MahaRERA’s Model Allotment Letter policy states specific guidelines for cancellation charges:

 

• First 15 Days: Zero Cancellation Charges

 

• 16-30 Days: Maximum 1%

 

• 31-60 Days: Maximum 1.5%

 

• 61+ Days (before agreement): Maximum 2%

 

 

But are developers following these rules?

Unfair Cancellation Charges by Developers

Some developers are ignoring these guidelines:

• Charging 5% or more as cancellation fees.

• Delaying the refund process unnecessarily.

• Forcing buyers into legal battles to reclaim their money.

 

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