The Maharashtra Real Estate Regulatory Authority (‘MahaRERA’) by way of Order No. 31/2022 dated July 01, 2022 (‘Notification’), which is effective from July 01, 2022, has in supersession of its earlier Order No. 30/ 2022 dated June 03, 2022, slightly modified the proforma of the allotment letter and similarly provided and mandated the execution of a allotment letter between the promoter and the allottee in respect of a real estate project in accordance with the Model Allotment Letter annexed to the Notification (‘Model Allotment Letter’) and where a sum of not more than 10% of the total consideration is collected as deposit or advance by the promoter.

As a major pro-allottee move of MahaRERA, the Notification read with the Model Allotment Letter prescribes the minimum period within which the booking can be cancelled by the allottee and capping of the penalty which can be deducted by the promoter to a maximum of 2% (two percent) in the event of such cancellation by the allottee or non-payment of the balance booking amount/ advance payment by the allottee (where allottee has opted for payment in instalments) and such non-payment resulting in a cancellation of the allotment letter by the promoter after following the process as mentioned therein. The promoter is at liberty to amend the Model Allotment Letter only to the extent of increasing the number of days within which the allottee can cancel its booking and decreasing the percentage in the event of cancellation of booking by the allottee and not otherwise.

The Notification further mandates and requires the promoter to highlight in different colour the deviations/ modifications in the proforma of the agreement of sale proposed to be executed by the promoter with the allottee as compared to the model form of agreement for sale as provided in the Rules notified by MahaRERA. This direction has been suggested to enable proper and speedy verification by MahaRERA of the proforma of the agreement for sale as uploaded by the promoter. Any deviation from the uploaded proforma which is contrary to the provisions of the Real Estate (Regulation and Development) Act, 2016, read with the rules and regulations made thereunder, would result in the application of registration by the promoter to be rejected.