Section 26(3) in The Maharashtra Housing and Area Development (Estate Management, Sale, Transfer and Exchange of Tenements) Regulations, 1981
(3)In case of tenements allotted on rental basis, the earnest money paid-by an allottee may be retained towards administrative expenses under the following circumstances, that is to say, -(a)if the allottee fails to accept the tenement allotted to him within the time specified in the allotment order; or(b)if it is found that the allottee does not satisfy any of the conditions of allotment.
