RERA: Refund of the Booking amount by the builder


Real Estate (Regulation and Development) Act, 2016 is going to complete a year and people are still skeptical about the implementation of the provisions of the act. One of the vital point which was not covered under the provisions of RERA was the refund of the booking amount as on the basis of same the home-buyer can’t get the status of an allottee as per Section 2(d) of the RERA Act and for the maintainability of the case a complainant should be an allottee.

Lately, the Maharashtra Real Estate Regulatory Authority in its ruling shed some light on the refund of booking amount as in its order the authority directed the developer to give back the amount of Rs 1 lakh which was paid as a booking sum by the home-buyer.

The complainant, Sanjiv Gill had booked a studio level in ‘UK Iridium’ at Kandivali East. The booking amount was paid on May 28, 2017, and 4 months later on he asked for the refund of the amount which he had paid at the time of booking, the Developer didn’t give any response to his cancellation request and finally, the complainant had to knock the door of RERA Authority.

In hearing proceeding the legal representative of the developers said that this case is not maintainable as per the provisions of the RERA as there is no section regarding the refund of booking amount.

He also made a statement that the complainant doesn’t have the status of allottee as per Sec 2(d) of the RERA Act and also no Builder-Buyer was not executed between the parties so on the basis of the same, the advocate of the developer plead before the authority to reject the complaint outrightly.

The RERA bench of Maharashtra after observing the submissions of both the sides said that the developer had violated the Section 3 of the RERA Act as he accepted the booking amount before taking registration of the project with MAHARERA and this action is void ab initio. As per Section 3 of the act “No person shall sell or book the flat, make any purchase in any manner, any plot, apartment or building in any real estate project without registering the project with RERA,”

The MAHARERA Authority eventually made an order where the clear directions have been given to the builder to refund the booking amount of Rs. 1 lakh and simultaneously he has to pay Rs. 50,000/- as a penalty to violate the section 3 of the RERA Act.

In the light of the above we can reach to the outcome that even if the Builder-Buyer agreement is not executed and the complainant is not falling under the definition of an allottee, he may still approach RERA Authority to seek for the legal remedy. Although seeking for the recourse as per the act also depends upon the facts and circumstances of the case.


Disclaimer – The above points are based on the personal interpretation and understanding of the RERA rulings, which may differ person to person. The readers are expected to take expert opinion before placing reliance on it.



  1. Hello,
    I have bought a house in Sobha dream acres project. I want to cancel the property and the property is under tera. I am not sure about my booking amount. I have paid an initial payment of 610000 Rs, and it states in my ledger that this was towards land cost. And if I am not wrong rera clearly mentions that builder can keep booking amount. If I cancel now, will I loose my initial payment money?

  2. I have booked the apartment in Sobha Dream Acres Bangalore with booking amount 90k in FEB 20 this year. Next day I realized that they are hiding some facts about the property related to corridor. Then I have cancelled the booking next day by verbally telling on call and also by sending them a mail of booking cancellation. Now it have been 5 months and i yet to get my refund even after I am following them in a regular basis. They are only telling that they will refund as per company policy.But seems like they are taking matter seriously. They also keep giving me fake commitments every time I call. Please help me as I need money immediately as I am suffering in a financial crisis issue. I heard that in RERA compliance, builder should refund the amount in next 45 days of booking cancellation but in my case it already have been 5 months.Also they told they will not refund full money i.e 90k. They will only refund 40k.I am not sure why they are deducting 50k rs. Now as it have been 5 months of suffering , I am seeking some penalty too on the builder to keep holding my hard earn money. Please help me and suggest if it is possible to get refund earliest. Attached are the payments done at the time booking.

  3. I have booked A flat in Sethia imperial avenue d( Sethia infrastructures)& given 200000/- as booking amount but due to financial crisis in want to cancel buyer- builder agreement made yet.can I get refund of my booking amount of Rs 200000/-

  4. Sir we booked a apartment in Omaxe new Chandigrh, as we moved back from Canada , as we don’t have income prove in India. That why bank rejected loan, but buider lies at the time of booking they’ll get the loans done . Now we’re asking our booking account back there saying they will deduct money. Can you please guide us how get our money back.

  5. Hello

    I booked a Flat with a Builder, 6 lacs as first Booking amount and gave the cheques for Booking amount 2 & 3 for after a months time. Later four days my banker refused to sanction loan. I understood that won’t be able to get loan and initiated cancellation after 10 days after application/First booking amount and mentioned in writing not to produce my another two cheques and issued stop payment.

    The builder got finance team and they kept hanging the case mentioning they are getting the loan done for me from HFDL. Asked to submit my documents to Bank. After some time that too got denied. After crossing the Booking dates, The Builder sent notices mentioning all amount are fortified. No Refund.

    Please help should i go to RERA office to file complaint ? or Consumer forum or directly to Court ?

    Thank you

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