By Arosh John | Founder – John Real Estate (MahaRERA Reg. No. A51700001835) | Editor-in-Chief – Thane Real Estate News (TREN)
Thane – MMR | November 2025
The Fine Print Every Homebuyer Should Read
Under-construction projects in Maharashtra are governed by the Real Estate (Regulation and Development) Act, 2016 and monitored by MahaRERA, the state’s regulatory authority.
When it comes to cancellations and refunds, MahaRERA has issued clear rules defining how much a promoter (developer) can deduct, how quickly a refund must be made, and what protections apply if the developer defaults.
For buyers across Thane and the wider MMR, these norms have made transactions far more transparent and fair — a significant shift from the pre-RERA era of arbitrary forfeitures and opaque refund practices.
1 | If the Buyer Cancels (No Developer Default)
As per MahaRERA’s Order dated 12 August 2022, incorporated into Order No. 56/2024, a developer can deduct only a limited portion of the total consideration when a buyer voluntarily cancels a booking.
| Time Elapsed Since Booking / Allotment | Maximum Deduction Allowed |
|---|---|
| Up to 15 days | 0 % – Full refund to buyer |
| 16 – 30 days | Up to 1 % of the total price |
| 31 – 60 days | Up to 1.5 % of the total price |
| 61 days and beyond | Up to 2 % of the total price |
Key points under MahaRERA:
- These deductions apply only when the buyer cancels by choice and the developer has not defaulted on the contract.
- Any clause seeking forfeiture exceeding 2 % is in violation of MahaRERA’s model format and can be challenged before the Authority.
- Developers must highlight any deviation from the model allotment letter in a different colour and obtain the buyer’s separate written consent.
Refund Timeline:
Refunds should ordinarily be processed within 45 days of receiving a written cancellation request, as reflected in MahaRERA’s model allotment letter.
2 | If the Developer Defaults
Under Section 18 of the RERA Act, if the developer fails to:
- complete or hand over possession as per the agreement, or
- faces revocation of project registration,
…the allottee is entitled to a full refund of all payments, along with interest and compensation as determined by MahaRERA.
This protection operates independently of buyer-initiated cancellations and is automatically triggered whenever the developer defaults or fails to deliver possession.
3 | How to Cancel a Booking Step by Step
- Verify project registration on https://maharera.maharashtra.gov.in and record the registration number.
- Review your documents – ensure your booking form and allotment letter follow MahaRERA’s approved model.
- Draft a written cancellation notice citing the unit details, date of booking, and refund claim under MahaRERA’s prescribed deduction limits.
- Send the notice by email or registered post and keep proof of delivery.
- Allow refund processing – typically within 45 days.
- If the developer deducts more than allowed or delays the refund, file an online complaint with MahaRERA quoting Order No. 56/2024 and attach supporting documents.
4 | Why This Matters for Buyers in Thane and MMR
Thane’s property market — from Kolshet and Balkum to Kasarvadavali and Kalher — is expanding rapidly with multiple under-construction projects. Knowing your cancellation rights helps you stay financially secure even if plans change.
Understanding MahaRERA’s refund framework ensures that:
- You can exit confidently without heavy financial loss.
- Developers cannot impose arbitrary deductions.
- Defined regulatory norms protect every rupee of your booking.
For consultants and investors, explaining these rules builds credibility and adds a layer of professional assurance to every deal.
5 | Key Takeaways
- 0 – 2 % is the only legally permitted deduction range for buyer-initiated cancellations under MahaRERA orders.
- Order No. 56/2024 and the Model Allotment Letter (August 2022) apply to all MahaRERA-registered projects across Maharashtra.
- Refunds are expected within 45 days of the cancellation request.
- Section 18 of RERA gives buyers the right to a full refund, including interest and compensation, if the developer defaults.
- Knowing these rules is essential for anyone investing in Thane and MMR’s under-construction market.
About the Author
Arosh John is the Founder of John Real Estate (MahaRERA Reg. No. A51700001835) and Editor-in-Chief of Thane Real Estate News (TREN) — a digital platform dedicated to factual, insight-driven coverage of the Mumbai Metropolitan Region’s evolving property landscape. With over a decade of on-the-ground experience across Thane’s residential, villa, and infrastructure-led corridors, Arosh combines local market intelligence with regulatory insight to decode how policies and urban planning shape real estate value.
Disclaimer: This article is based solely on MahaRERA’s official circulars and orders, including the Model Allotment Letter (12 August 2022) and Order No. 56/2024. It is intended for informational purposes only and does not constitute legal advice. Buyers should refer to the latest MahaRERA updates and consult qualified professionals for their specific cases.
