Cancelled Your Flat Booking Before the Agreement? MahaRERA Says the Builder Can Keep Only 2%

In June 2026 MahaRERA again capped a builder's deduction at 2% of the flat cost when a buyer cancelled before signing the agreement for sale. What buyers can and cannot claim.

Haji Ali coastal road interchange with sea-view flats

Buyers book a flat with a large cheque, change their minds before signing the agreement for sale, and then find the builder wants to keep 10% or more. MahaRERA has repeatedly said that is too much.

The June 2026 order

In Sanjay Ramesh Kadu v. Gokhale Realty LLP, decided on 16 June 2026, a buyer had booked a Rs 1.6 crore flat in Kothrud, Pune, paying Rs 40 lakh in October 2023. He cancelled in December 2023, before any agreement for sale. The developer kept 10% (Rs 4 lakh).

MahaRERA held that for a cancellation before the agreement, the developer may keep only a reasonable amount, capped at 2% of the unit cost. Here that was Rs 3.2 lakh, so the builder had to refund the extra Rs 80,000 within 30 days, failing which interest at SBI MCLR plus 2% would apply.

Booking amounts are not free money for the builder. Before an agreement, MahaRERA has repeatedly limited deductions to 2%.

What the buyer did not get

The buyer also asked for interest and compensation. MahaRERA said a buyer who withdraws before a registered agreement for sale cannot claim section 18 interest. The relief was limited to the excess deduction.

Not a one-off

The order cites earlier MahaRERA orders (Nos. 35/2022 and 60/2025), and MahaRERA has applied the same 2% approach in other cases, including one involving Piramal Estates.

If you are about to book

Read the booking form's cancellation clause before you pay.
Pay the booking amount by cheque or bank transfer, never cash.
Cancel in writing and keep proof.
Check the project on MahaRERA first. See how to check a MahaRERA project.

Already signed and registered the agreement? Different rules apply, and you may be able to claim a stamp duty refund. See stamp duty refund on a cancelled agreement.

Frequently asked questions

How much can a builder deduct if I cancel a booking before the agreement?

MahaRERA has repeatedly capped the deduction at 2% of the unit cost when the buyer cancels before an agreement for sale is executed.

Can I claim interest if I cancel before the agreement for sale?

In Sanjay Ramesh Kadu v. Gokhale Realty LLP, MahaRERA said section 18 interest is not available to a buyer who withdraws before a registered agreement for sale.

Sources

This is general information, not legal or tax advice. Rules change, so check your own case with a lawyer or CA.

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