This is how the RERA Act seems to spell out what happens if the allottee of flat cancels the booking for no fault of the builder - ONLY THE BOOKING AMOUNT CAN BE FORFEITED.
CAN THE BUILDER FORFEIT ANY OTHER AMOUNT like brokerage charges, interest on delayed payments, service taxes, VAT etc: etc: after RERA has come into effect, if the buyer cancels the allottment because of inability to pay the full amount of the flat. The agreement mentions Earnest Money forfeiture plus other charges, but the agreement was drawn up PRE RERA.
7.5 Cancellation by Allottee – The Allottee shall have the right to cancel/withdraw
his allotment in the Project as provided in the Act:
Provided that where the allottee proposes to cancel/withdraw from the project
without any fault of the promoter, the promoter herein is entitled to forfeit the
booking amount paid for the allotment. The balance amount of money paid by
the allottee shall be returned by the promoter to the allottee within 45 days of
such cancellation.
