Cancelling a flat booking in Hyderabad: booking amount forfeiture and refund under TG-RERA
Short answer: if you cancel a flat booking in a RERA-registered Telangana project without any fault of the builder, the model agreement for sale in the Telangana RERA Rules, 2017 lets the builder forfeit the booking amount. The rest of what you paid must be returned within three months of the cancellation, or when the builder resells the flat, whichever is later. If the builder is at fault (for example, possession is late), the refund is your whole amount with interest (RERA Act section 18). Telangana sets that interest at SBI's highest MCLR plus 2% (rule 15), and the refund is due within 90 days (rule 16). By law the builder cannot take more than 10% of the price before a registered agreement (section 13(1)).
Who this is for: Hyderabad buyers who paid a booking or "token" amount and now want to cancel (loan not sanctioned, job change, second thoughts), and buyers whose builder is offering much less back than they paid.
The rules, with sources (Telangana)
| Situation | What the source says | Status |
|---|---|---|
| How much can be taken before an agreement | RERA Act s.13(1): a promoter shall not accept more than ten per cent of the cost as an advance payment or application fee without first entering into a written agreement for sale and registering it. | Read (text of the Act read from our saved copy of 21 Oct 2026; the hosting page did not load on 26 Oct) |
| You cancel, builder not at fault | TG RERA Rules, Annexure agreement, clause 7.5: "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 ... shall be returned ... within three months of such cancellation or at the time that the Promoter is able to resell ..., whichever is later." | Read 26 Oct 2026 |
| What "booking amount" is | Clause 1.11 of the same agreement records the booking amount paid at application as part of the total price, with the figure left blank. The model text does not fix a percentage. | Read 26 Oct 2026. The amount in your agreement decides it |
| You default on payments | Clause 9.3(ii): the promoter may cancel and refund after deducting the booking amount and interest liabilities, with at least 30 days' prior intimation, and repay within 90 days. | Read 26 Oct 2026 |
| Builder is late or cannot give possession | RERA Act s.18(1): if you withdraw, the promoter must return the amount received with interest and compensation. If you stay, you get interest for every month of delay. Clause 7.6 of the agreement mirrors this, with a refund within 90 days. | Read 26 Oct 2026 |
| Interest rate and refund time | TG Rules rule 15: highest SBI MCLR plus 2%. Rule 16: refunds payable within ninety days. | Read 26 Oct 2026 |
| Builder cancels on its own | RERA Act s.11(5): the promoter may cancel an allotment only in terms of the agreement for sale. If the cancellation is unilateral and without sufficient cause, the allottee may approach the Authority. | Read (text of the Act read from our saved copy of 21 Oct 2026; the hosting page did not load on 26 Oct) |
| A cap on how much can be forfeited | We found no Telangana rule, FAQ or order on our checked pages that caps the booking amount that can be forfeited. | To verify |
What to do in Telangana, step by step
- Find out what you signed. A booking form only, or a registered agreement for sale? The agreement's clause numbers and the booking amount it states decide your refund. Our agreement of sale checklist explains the difference.
- Work out whose fault it is. If the builder is late, has changed the plan without consent, or its registration has lapsed, you are in s.18 territory: full refund plus interest. If you simply changed your mind, expect the booking amount to be kept.
- Cancel in writing. Send an email and a signed letter giving the flat number, the amounts paid with receipt numbers, and the date. Ask for the refund calculation and the date it will be paid.
- Check the arithmetic. The deduction should be no more than the booking amount stated in your agreement. GST, stamp duty and loan charges are separate questions (see our GST on flats guide and stamp refund guide).
- If nothing is paid in time, a complaint to TG-RERA is the route for a registered project. Our Form M / Form N guide lists the papers.
Common mistake: paying 20% or 30% "to lock the price" on a booking form, then finding that the form lets the builder keep a large part of it. By law no more than 10% should be taken before a registered agreement (s.13(1)), so ask for the agreement before you pay more.
Related guides
- Can a builder charge for car parking?
- Carpet area in property ads under RERA
- Carpet area and loading calculator (free tool)
Buying in the other state? See the Andhra Pradesh guide to booking cancellation.
Not legal advice. This page summarises the RERA Act, 2016 and the Telangana RERA Rules, 2017 (read 26 Oct 2026). Points we could not confirm say "to verify". Your own agreement for sale, and the Authority or a court, decide each case. Speak to a property lawyer before you pay, sign or cancel.
A free sample from our Hyderabad property do-it-yourself pack: the papers to ask the builder for and the official portals to check, so the parking, the price and the payment schedule are on paper before you pay.
Get it free (instant download)FAQ
How much can a builder keep if I cancel a flat booking in Hyderabad?
Under clause 7.5 of the TG RERA model agreement, the booking amount, if the builder is not at fault. The balance is due within three months or on resale, whichever is later.
Can the builder take 20% at booking in Telangana?
Not before a registered agreement for sale. RERA Act s.13(1) caps advances at 10% of the cost.
What if the builder is delaying possession and I want to cancel?
RERA Act s.18 gives a refund of the amount paid with interest. Telangana rule 15 sets the interest at SBI's highest MCLR plus 2%, and rule 16 gives 90 days to pay.
Is there a limit on the booking amount that can be forfeited?
We found no Telangana cap on our checked pages. Check the booking amount stated in your agreement (to verify).
Official sources
- RERA Act, 2016 (copy hosted by Kerala RERA)
- Telangana RERA Rules, 2017 incl. Annexure agreement for sale (RR1.pdf)
- TG-RERA home
Not legal advice. We don't check properties or certify ads. A lawyer must confirm title, and the Authority's own notices override anything on this page.