A good number of threads about this. For example:

http://www.flyertalk.com/forum/starw...ve-dinner.html

http://www.flyertalk.com/forum/starw...idding-me.html

It is listed under "Special Conditions", but I guess few actual bother to click on it. Yes, it is common for most resort properties in South Asia under any flag (Starwood, Hilton, Marriott etc) or locally flagged. I doubt they will waive it but I am sure you can cancel without penalty.