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Property & land

Builder delaying possession of your flat or plot

What RERA says when a builder doesn't hand over a flat or plot on time, the refund and interest options, and the forums homebuyers use.

Reviewed by ZiyanaUpdated 7 min readRules vary by state ↓

In short

  • Under RERA, if a builder fails to give possession as promised in the agreement, the buyer can either withdraw and claim a refund with interest, or stay in the project and get interest for every month of delay.
  • Complaints go to the state Real Estate Regulatory Authority. Compensation claims are decided by its adjudicating officer.
  • Appeals go to the state Real Estate Appellate Tribunal within 60 days, and then to the High Court.
  • Homebuyers can also go to a Consumer Commission. But the Supreme Court has said that once one route is chosen for a dispute, the buyer generally cannot switch to the other for the same dispute.

Reviewed by

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    Reviewed this guide for accuracy against the sources listed below.

02What the law says

Section 18 of the Real Estate (Regulation and Development) Act, 2016 deals with delay. If the promoter (builder) fails to complete or is unable to give possession of an apartment, plot or building as per the agreement for sale, or by the date it specifies, the allottee (buyer) has two options:

  • Withdraw from the project. The builder must return the amount received, with interest at the rate prescribed by the state's rules, and compensation as provided in the Act.
  • Stay in the project. The builder must pay interest for every month of delay until possession is handed over, at the prescribed rate.

Each state has its own RERA authority, appellate tribunal and rules, and the rate of interest, forms and fees are set by each state's RERA rules. The Act says the rate the builder pays the buyer on default and the rate the buyer pays the builder on default must be the same. In Newtech Promoters v. State of UP, the Supreme Court described the right to a refund under section 18 as unconditional where the builder fails to give possession as agreed. It also said the regulatory authority can order refund and interest, while compensation is decided by the adjudicating officer.

RERA also makes the builder responsible for structural defects and certain other defects reported within five years of handing over possession. They must be fixed free of charge within 30 days.

The Act says it is in addition to other laws, not in place of them (section 88). Civil courts cannot hear matters that RERA bodies can decide (section 79), but the Supreme Court held in Imperia Structures v. Anil Patni that Consumer Commissions are not barred. In Kabra and Associates v. Rekha Rajkumar Hemdev, it held that homebuyers who first chose RERA, and then withdrew their RERA complaint, could not later file the same claim before a Consumer Commission.

Your state

State-specific notes for this guide are coming soon. Rules differ by state, so check with your state's official authority.

03Where you can go

  1. The builder, in writing. Many buyers first ask for a revised possession date, interest or refund in writing.
  2. State Real Estate Regulatory Authority. Any aggrieved person can file a complaint with the authority or its adjudicating officer, usually online on the state RERA website.
  3. Adjudicating officer. Decides compensation claims under the Act. The adjudicating officer is or has been a District Judge.
  4. Real Estate Appellate Tribunal. Hears appeals against orders of the authority or adjudicating officer.
  5. Consumer Commission. An alternative forum for homebuyers. A complaint already pending there can, with the Commission's permission, be withdrawn and filed before the RERA adjudicating officer.

04How it usually works

  1. 01

    The buyer checks the possession date in the agreement for sale and the project's RERA page.

  2. 02

    Many buyers write to the builder asking for possession, interest or a refund.

  3. 03

    If it isn't resolved, a complaint is filed online with the state RERA authority, choosing either refund with interest or interest for the delay.

  4. 04

    The authority hears both sides and passes an order. Compensation claims go to the adjudicating officer.

  5. 05

    Either side can appeal to the Appellate Tribunal. A builder who appeals must first deposit at least 30% of the penalty, or the full amount payable to the buyer, or both, as the Tribunal directs.

  6. 06

    If the builder doesn't pay, the order can be enforced through the recovery process in the Act and the state's rules.

05Time limits

  • 60 days: to appeal to the Real Estate Appellate Tribunal from the date of receiving a copy of the order. The Tribunal can accept a late appeal if there was sufficient cause.
  • 60 days: to appeal from the Tribunal to the High Court. The High Court can also accept a late appeal for sufficient cause.
  • Five years: from handover, for reporting structural defects that the builder must fix within 30 days.
  • RERA complaints: the Act does not set a specific time limit for filing a complaint, but some tribunals have applied the Limitation Act to compensation claims. An advocate can confirm what applies.
  • Two years: to file a consumer complaint, from when the cause of action arose (Consumer Protection Act, 2019, section 69).

06Documents to gather

  • Allotment letter and agreement for sale (and whether it was registered)
  • Payment receipts, bank statements and home loan documents
  • The project's RERA registration page, showing the declared completion date
  • Builder's emails, letters and demand notices
  • Brochures and advertisements that mention possession dates
  • A timeline of payments and promised dates

07Common questions

Section 18 provides for refund with interest, and also compensation as provided in the Act. Compensation is decided by the adjudicating officer, who looks at factors such as the loss caused and whether the default was repeated.

The rate is fixed by each state's RERA rules. It is the same rate the buyer would pay the builder for a late payment.

Both are available, but the Supreme Court has held that once a buyer elects one route for a dispute, they cannot later switch to the other for the same dispute. People often take advice on this before filing, because the choice affects later options.

Complaints can still be made, and the Supreme Court has said non-registration of a project did not take away the RERA authority's jurisdiction in the case before it. Not registering a project that should be registered is itself a violation of the Act.

08Questions to ask an advocate

If you speak to an advocate, these questions can help make the conversation useful.

  • Is my claim better suited to RERA, a Consumer Commission, or another forum, and what do I lose by choosing one?
  • Should I ask for a refund or for delay interest, given the stage of the project?
  • Is my complaint within time, given when possession was due?
  • How can an order in my favour be enforced if the builder doesn't pay?

09Sources

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This guide is general legal information for India, not legal advice. Laws and procedures change and can differ by state. For advice on your situation, speak to a qualified advocate.

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