Only a reasonable amount can be forfeited as earnest money.

 In the Matter of DLF Ltd. v. Bhagwanti Narula, I (2015) CPJ 319(NC) the Hon’ble National Consumer Disputes Redressal Commission has clearly laid down that only a reasonable amount can be forfeited as earnest money in the event of default on the part of the purchaser and it is not permissible in law to forfeit any amount beyond a reasonable amount unless it is shown that the person forfeiting the said amount had actually suffered loss to the extent of the amount forfeited by him. Further, it was held that 20 % of the sale price cannot be said to be a reasonable amount which the petitioner company could have forfeited on account of default on the part of the complainant unless it can show it had suffered loss to the extent the amount was forfeited by it.