Cancelling a flat booking: how much a builder may forfeit in Haryana, Maharashtra and Telangana

Rules and rates as of 14 October 2026.

You paid to book a flat, and now you want out. Maybe the loan fell through, or a job moved. The builder points to a clause that lets it keep a slice of what you paid. How big a slice is allowed depends less on the national law than on where the flat is. Haryana, Maharashtra and Telangana have each landed on a different answer, and the Supreme Court has given a fourth.

This piece is about cancelling when the builder has done nothing wrong. If the builder is late or in breach, you are in different territory: a refund with interest under section 18 of the RERA Act, covered in our separate explainers. This is not legal advice; a property lawyer should read your own booking form and agreement.

What the RERA Act itself says

The Real Estate (Regulation and Development) Act, 2016 does not put a number on forfeiture when a buyer walks away. Three sections frame the question:

• Section 13(1) bars a promoter from accepting more than 10% of the cost of the apartment as an advance or application fee before a written agreement for sale is signed and registered.
• Section 13(2) says that agreement must be in the form the state's rules prescribe. That is why each state has its own model agreement.
• Section 11(5) says a promoter may cancel an allotment "only in terms of the agreement for sale", and lets the buyer go to the Authority if a cancellation breaks those terms.

So the cap, where there is one, comes from a state regulation, a regulator's order, or a court.

Haryana: 10% of the consideration

The Gurugram bench of the Haryana regulator has a regulation titled the Haryana Real Estate Regulatory Authority Gurugram (Forfeiture of earnest money by the builder) Regulations, 11(5) of 2018. As reproduced in its orders, it says the earnest money forfeited shall not exceed 10% of the consideration amount, where the builder cancels unilaterally or the buyer withdraws. It adds that any agreement clause contrary to it is void and not binding on the buyer.

The Authority applies it routinely. In Sanmeet Singh Kochhar v. Imperia Structures (Complaint 2276 of 2019, order of 6 October 2022) it ordered a refund after deducting 10% of the sale consideration. It did the same in Rajendra Kumar v. Experion Developers (Complaint 1609 of 2023, 25 April 2025), adding interest at SBI MCLR plus 2% on the balance.

Maharashtra: 2%, and sometimes nothing

MahaRERA has gone much lower. In Arunesh Chopra v. Tata Housing (Complaint CC006000000110661, order of 6 September 2024), the Authority referred to its order of 12 August 2022 on the prescribed allotment letter, which it said "permits the promoter to forfeit 2% amount" when the allottee cancels. The booking form in that case allowed 10.5%; MahaRERA held that inconsistent and ordered a refund after deducting 2% of the total consideration, leaving out statutory dues and brokerage. A 30 September 2024 order against Ruparel Infra, citing the same instrument as Order No. 35/2022, rejected a 5% deduction on the same reasoning.

Earlier, the Maharashtra appellate tribunal went further. In Dinesh and Ranjana Humane v. Piramal Estate (Appeal AT006000000041967, 2021), no agreement for sale had been signed. A reservation form let the builder forfeit 10% of the consideration or the amount paid, whichever was less. The tribunal held that clause unfair and ordered the full ₹5,61,967 returned.

Telangana: the booking amount

Telangana's model agreement, prescribed under its 2017 RERA rules, ties forfeiture to the "booking amount" rather than a percentage. In Bharatha Raveender v. Krithika Infra Developers (Complaint 1684 of 2023, order of 21 March 2024), the buyer withdrew for his own reasons. Relying on clause 7.5 of that model agreement, TS RERA let the builder keep the ₹1,00,000 booking amount and ordered the remaining ₹30,50,000 refunded with interest at 10.65%. On a sale consideration of ₹42,09,300, that forfeiture was about 2.4%.

Where the builder itself broke section 13, the result was different. In Bhavani Velivala v. Pagadala Constructions (Complaint 1184 of 2023, 15 October 2024), no agreement was signed, yet the builder had taken more than 10%. TS RERA ordered a full refund despite a "₹5 lakh or 10%" forfeiture clause, and fined the builder under section 61.

The Supreme Court: 10% of the basic price

In Godrej Projects Development v. Anil Karlekar (Civil Appeal 3334 of 2023, 3 February 2025), a Gurugram flat case decided under consumer law, the agreement treated 20% of the basic sale price as earnest money. The Court saw "no reason to upset" the consumer commission's consistent view that 10% of the basic sale price is a reasonable forfeiture. Note the base: basic sale price, not the all-in price.

Where the sources conflict

• Haryana 10% against Maharashtra 2%. The same act, a buyer withdrawing without fault, costs five times as much in Gurugram as in Mumbai on these instruments.
• Consumer law against MahaRERA. The Supreme Court's 10% of basic price, in a consumer case, is far above MahaRERA's 2%. A buyer choosing a forum should know both exist.
• Before and after the agreement. Both the Maharashtra tribunal (2021) and TS RERA (2024) refused any forfeiture where no registered agreement existed and the builder's terms were unfair or broke section 13. Other orders allowed a deduction. The facts decide.

Worked example: cancelling an ₹80 lakh booking

Assume a total consideration of ₹80,00,000, of which ₹72,00,000 is the basic sale price (the rest being other charges). The buyer has paid ₹16,00,000 under a registered agreement and withdraws without any fault of the builder. These are illustrative figures. Formula: refund = amount paid − forfeiture, before any interest an authority may add.

Basis	Forfeiture	Refund of ₹16 lakh paid
Haryana (Gurugram) regulation: 10% × ₹80,00,000	₹8,00,000	₹8,00,000
MahaRERA 2022 order: 2% × ₹80,00,000	₹1,60,000	₹14,40,000
Telangana: booking amount, if it was ₹1,00,000	₹1,00,000	₹15,00,000
Telangana: booking amount, if it was the full 10% (₹8,00,000)	₹8,00,000	₹8,00,000
Supreme Court, Godrej: 10% × ₹72,00,000 basic price	₹7,20,000	₹8,80,000
A printed clause of 20% × ₹80,00,000, if enforced	₹16,00,000	₹0

The gap between the Haryana and Maharashtra lines is ₹8,00,000 − ₹1,60,000 = ₹6,40,000 on the same flat. In Telangana, what you paid as the "booking amount" is the number that matters, so check your receipt.

We could not open Karnataka's prescribed agreement or any Karnataka forfeiture order, so it is not in the table.

Before you send a cancellation letter

• Find the forfeiture clause in your booking form and, if signed, your agreement. Note the percentage and its base: total price, basic price, or "amount paid".
• Check what you have paid and whether a registered agreement exists. Over 10% without one is a section 13 problem for the builder.
• Read your state regulator's current order or regulation on forfeiture, and ask a lawyer how it applies to your dates.