The Maharashtra Real Estate Regulatory Authority (MahaRERA) has clarified that developers can prescribe cancellation deductions that differ from those in the authority’s model allotment letter, provided the terms are clearly disclosed to homebuyers and uploaded in the project’s deviation sheet.
However, MahaRERA said developers cannot impose a higher cancellation deduction than the amount specifically stated in their disclosed terms of the deivation sheet.
What is a deviation sheet?
A deviation sheet is a document that lists the differences between a developer’s allotment letter and MahaRERA’s model allotment letter. It allows homebuyers to identify any additional, modified or alternative clauses introduced by the developer before they sign the agreement.
In the context of cancellation, the deviation sheet is particularly important because it should clearly disclose the cancellation charges or deductions that the developer intends to apply. Once these terms are disclosed to the buyer and uploaded as part of the project’s deviation sheet, the developer can rely on them, though it cannot subsequently impose a higher deduction than the amount specified in its disclosed terms.
The case
The ruling followed a complaint filed by two homebuyers against the developer of a Pune project. The buyers booked a flat on December 25, 2025, for a total consideration of ₹95 lakh and paid ₹1.01 lakh, including the booking amount and legal charges. However, no registered Agreement for Sale was executed between the parties. The homebuyers sought to cancel the booking on January 7, 2026, citing financial constraints.
A dispute subsequently arose over the amount the developer could deduct from the refund. The homebuyers argued that MahaRERA’s Order No. 60 of 2024 provides for no deduction when a booking is cancelled within 15 days.
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Developer’s defence
The developer, however, relied on a project-specific deviation report and initially claimed entitlement to deduct 2% of the total consideration, contending that the cancellation request had been made after 15 days.
“The booking was made on December 25, 2025, and the cancellation request was made on January 15, 2026, after 15 days from the date of booking. As per the Deviation Report and the booking form uploaded with MahaRERA, we are entitled to deduct 2% of the total consideration towards cancellation,” the developer submitted in the MahaRERA.
The developer denied that the amount had been arbitrarily withheld and also opposed the complainants’ claim for a refund of the entire amount with interest. Accordingly, the developer sought dismissal of the complaint, a declaration that the deduction was in accordance with the Deviation Report, and rejection of the claims for further refund, interest, compensation and costs.
MahaRERA’s verdict
MahaRERA rejected the developer’s contention on the date of cancellation. It found that an email from the buyers clearly communicated their decision to cancel and request a refund. The subsequent communication was treated only as a follow-up. The authority, therefore, held that the cancellation had occurred within 15 days of the booking.
“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 under its model allotment letter. At the same time, the order allows promoters (developers) to make deviations or modifications, provided those deviations are specifically highlighted and uploaded along with a deviation sheet so that the allottee is made aware of them,” MahaRERA said in its order.
In this case, the developer had uploaded a deviation report prescribing a 1% deduction for cancellations within 15 days and a 2% deduction for cancellations between 16 and 30 days. MahaRERA held that the homebuyers fell within the first category and therefore permitted a deduction of 1% of the flat’s consideration, amounting to about ₹95,008, rather than the 2% claimed by the developer.
The authority also directed the developer to refund the balance within 30 days. Since the refund had not been made within the 45-day period specified in the deviation report, MahaRERA directed that interest would be payable on the refundable amount in accordance with the applicable terms.
MahaRERA rejected the buyers’ claim for compensation and interest under Section 18 of RERA, holding that the booking had been voluntarily cancelled before execution of the Agreement for Sale. The refund was therefore governed by the applicable cancellation terms and the project’s deviation report rather than Section 18, it observed.
