News: MahaRERA Cancellation Charges: Disclose in Deviation Sheet-27-08-2026

Developers can fix cancellation deductions different from those in the regulator’s model allotment letter if the terms are clearly disclosed to buyers and uploaded in the project’s deviation sheet, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has clarified. They cannot, however, deduct more than those disclosed terms state.

A deviation sheet lists how a developer’s allotment letter departs from MahaRERA’s model document, so buyers can spot added or altered clauses, including cancellation charges, before signing.

The clarification came in a complaint by two homebuyers against the developer of a Pune project. They booked a flat on December 25, 2025, for Rs 95 lakh and paid Rs 1.01 lakh, including the booking amount and legal charges. No registered Agreement for Sale was executed. Citing financial constraints, they sought to cancel on January 7, 2026.

The buyers relied on MahaRERA’s Order No. 60 of 2024, which provides for no deduction on cancellation within 15 days. The developer, citing its project-specific deviation report, claimed 2% of the total consideration and submitted that the cancellation request was made on January 15, 2026, after 15 days. It denied withholding money arbitrarily and sought dismissal of the complaint and of the claims for further refund, interest, compensation and costs.

MahaRERA rejected the developer’s date. It found that an email from the buyers had clearly conveyed their decision to cancel and seek a refund, and treated the later communication as a follow-up. The cancellation was thus within 15 days.

The authority noted that Order 60 of 2024 provides for nil deduction within 15 days, 1% between 16 and 30 days and 1.5% between 31 and 60 days, but lets promoters modify these terms if the changes are highlighted and uploaded with a deviation sheet.

The developer’s uploaded report prescribed 1% for cancellations within 15 days and 2% between 16 and 30 days. MahaRERA therefore allowed a deduction of 1% of the consideration, about Rs 95,008, not the 2% claimed.

The balance must be refunded within 30 days. As the refund was not made within the 45 days specified in the deviation report, interest is payable under the applicable terms.

The buyers’ claim for compensation and interest under Section 18 of RERA was rejected, since the booking was voluntarily cancelled before an Agreement for Sale was executed.