The Maharashtra Real Estate Regulatory Authority (MahaRERA) has introduced standardised allotment letters for developers in a bid to bring in transparency and minimise buyer-seller disputes.
The newly introduced allotment letter would require developers to mention the date of handing over the possession of the booked property, percentage of charges levied on cancellation of booking, parking allotment and other details.
MahaRERA officials said that a standard allotment letter has been readied in a bid to bring in uniformity and safeguard the interest of flat buyers and developers.
The allotment letter prescribes the minimum period within which the booking can be cancelled and the upper limit of the percentage of the amount to be deducted in case an allottee desires to cancel the booking.
“The promoter may increase the number of days within which the booking can be cancelled as well as decrease the percentage of the amount to be deducted in the event of cancellation of the booking,” the letter stated.
Developers need to upload the allotment letter or the amended form of allotment letter at the time of applying for registration of the real estate project, said officials.
In case of non-compliance of the same, the application for registration of the project shall be liable to be rejected.
All MahaRERA developers would have to follow the model allotment letter or face action, stated consumer activists.
There is a provision in the MahaRERA that if a developer fails to follow the notification circular, then the real estate authority could slap a fine up to 5% of the project cost.
The same would be applicable to developers in the event of their not accepting the model allotment letter format, said Ramesh Prabhu, activist and chairman of the Maharashtra Societies Welfare Association.
Earlier, there used to be no mention of the cost of a flat in the allotment letter, but now, as per the model allotment letter, the builder has to mention the value of the property. According to the model allotment letter, in case of cancellation of a flat booking after 60 days, a developer can only charge a maximum of 2% of the cost of a flat as forfeiture fees.
Advocate Manjunath Kakkalameli told TOI that the standardised allotment letter would save flat buyers from legal loopholes. “Earlier, there were some issues with allotment letters as they did not meet the provisions and rules of MahaRERA and buyers had a trying time getting possession of their flats. This model letter will bring in transparency and help in reducing legal hurdles,” he said.
Some builders have expressed concern that small developers may avoid MahaRERA registration. “While big builders in metro cities will abide by the rules, developers in smaller cities and districts may not adhere to the model allotment letter,” said a leading builder in the state.