Quick answer: most under-construction flats in Mumbai are sold on a construction-linked plan (CLP), where you pay in stages as the building rises. Some projects also offer a down payment plan (pay most of the price early, often for a discount) or a 10:90-style plan (small payment now, most at possession). Whatever the plan, RERA limits the advance to 10% before the Agreement for Sale is registered, and the full schedule must be written into that agreement.
Last updated: 27 October 2026. A general guide for homebuyers in Maharashtra. Not financial or legal advice.
On a luxury home in Bandra West, the payment plan is not a small detail. On a home priced from ₹29 Cr*, the difference between paying 10% and paying 80% in the first year runs into crores. That changes your loan, your cash flow and your risk if the project is delayed. This guide explains the common plans in plain English and the questions to ask before you sign.
The 10% Rule Comes First
Under Section 13 of the RERA Act, a developer cannot take more than 10% of the cost of the flat as an advance or application fee before a written Agreement for Sale is signed and registered. This applies to every plan. If you are asked for more before registration, stop and ask why. Our guide to EOI and pre-launch booking explains how to protect money paid at the very early stage.
The Common Payment Plans Compared
| Plan | How you pay | Main benefit | Main risk |
|---|---|---|---|
| Construction-linked (CLP) | In stages tied to plinth, slabs, finishing and possession | You pay as work is done | Higher total cost if there is no discount; delays slow every stage |
| Down payment | A large share early, often 80-95% | Possible discount on price | Much of your money is with the developer before the building exists |
| 10:90 / possession-linked | About 10% at booking, the rest near possession | Low cash outflow during construction | Large payment at the end; price may be higher |
| Flexi / time-linked | Fixed dates, or a mix of CLP and down payment | Can be tailored | Dates may not match real progress |
Construction-Linked Plan (CLP)
This is the most common plan for new towers in Mumbai. After the booking amount and agreement registration, each instalment is linked to a stage of work – for example plinth, every few slabs, brickwork, finishing and possession. When a stage is reached, the developer sends a demand letter and you pay within the time set in the agreement.
- Ask how each stage is certified. Projects registered on MahaRERA must upload progress updates and architect or engineer certificates. Compare the demand letter with these updates.
- Check the slab-by-slab split. In a tall single tower of approx. 26 storeys*, slab payments can be spread over many months.
- Know the interest for late payment. The agreement sets the interest you pay if you are late – and the interest the developer pays you if it is late with possession.
Down Payment Plan
Here you pay most of the price early, often in exchange for a discount. It can make sense if you already have the funds and trust the developer’s track record. Before you choose it, do the maths:
- Work out the discount in rupees, not as a percentage.
- Compare it with what that money could earn elsewhere until possession, or with the loan interest you would pay on it.
- Think about delay. If possession is late by a year or two, the discount may no longer cover your cost of money.
- Read the refund and cancellation clauses carefully, because more of your money is at stake.
10:90 and Possession-Linked Plans
These plans keep your payments low during construction and ask for most of the price at or near possession. They suit buyers who are selling another home and plan to pay when that sale completes – see our guide to capital gains and Section 54 when you sell to buy in Bandra. The price is sometimes higher than a CLP. In older subvention schemes, the developer paid the home loan interest until possession; when some developers stopped paying, buyers were left with the EMIs. If a plan involves a bank, read the three-party agreement and ask what happens if the developer defaults.
How the Plan Affects Your Home Loan
Banks pay out a home loan for an under-construction flat in stages, in line with construction. With a CLP, the loan follows the demand letters; until the full amount is paid out you usually pay only interest on what has been released (pre-EMI). With a down payment plan you need most of the money early, so the loan is paid out early too and full EMIs start sooner. RBI rules also limit how much of a high-value home a bank can fund, so you will need a large share from your own funds. Our home loan guide for a luxury flat in Mumbai explains this step by step.
Taxes and Costs Do Not Change With the Plan
Stamp duty and registration are paid on the agreement value when the agreement is registered, whatever plan you choose. GST applies to instalments of an under-construction flat. Running costs such as maintenance deposits are usually collected near possession. Read our guide to stamp duty, GST and registration in Mumbai and our guide to maintenance and running costs to budget the full amount.
Whatever the plan, 1% TDS is deducted from every instalment – see our guide to TDS on property purchase and Form 141.
Questions to Ask Before You Choose a Plan
- Is the full payment schedule written into the Agreement for Sale, with each stage named?
- Which payments include GST, and which are extra?
- Are parking, club membership, legal fees or deposits charged separately? (Our car parking guide explains what can be charged.)
- What interest applies if I pay late, and what compensation applies if possession is late?
- What is the refund amount if I cancel, and by when is it paid?
- Does the project have a MahaRERA registration number, and do the progress updates match the demand letters?
Use this list together with our Agreement for Sale checklist and the checklist for booking in Bandra West.
Payment Plans at Godrej Bandra Bay
Godrej Bandra Bay at Bandra Reclamation is planned as one tower of approx. 26 storeys* on approx. 2.75 acres*, with 4 BHK homes only of approx. 2,900–3,500 sq ft* carpet, from ₹29 Cr*. No payment plan, offer or price list has been published, and MahaRERA registration is awaited. When the developer shares a schedule, compare it against the points above. Read our guide to verifying the MahaRERA registration and what is confirmed and not confirmed so far.
Comparing other options nearby? You can read about Adani Bandra Reclamation, or see another summary on the Godrej Bandra Reclamation property page. For the full picture, read the complete Godrej Bandra Reclamation guide or visit the Godrej Bandra Reclamation project page. Want the payment plan as soon as it is released? Send an enquiry.
Frequently Asked Questions
How much can a builder take before the Agreement for Sale is registered?
Under Section 13 of the RERA Act, a promoter cannot accept more than 10% of the cost of the flat as an advance or application fee before a written Agreement for Sale is signed and registered.
What is a construction-linked payment plan?
A construction-linked plan (CLP) splits the price into instalments that become due when the building reaches set stages, such as plinth, each slab, finishing and possession. You pay as the building grows.
Is a down payment plan cheaper?
Often the developer offers a discount for paying most of the price early. Compare that discount with the interest you could earn or the loan interest you would pay, and with the extra risk of paying before the building is built.
What is a 10:90 or subvention plan?
In a 10:90 plan you pay about 10% at booking and most of the balance near possession. Some older subvention schemes had the developer pay the loan interest until possession. Read who pays what, and what happens if the developer stops paying.
Does the payment plan change stamp duty or GST?
Stamp duty is based on the agreement value and is paid when the agreement is registered, whatever plan you choose. GST applies to under-construction flats on each instalment. Our stamp duty and GST guide explains the costs.
What is the payment plan for Godrej Bandra Bay?
No payment plan or offer has been published for Godrej Bandra Bay yet, and MahaRERA registration is awaited. Ask for the full payment schedule in writing before you pay any booking amount.
*Prices, sizes and other details are indicative and subject to change. Please verify all details with the developer and on the MahaRERA website before making any decision.
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