My builder delayed possession by 2 years. Should I go to RERA or the consumer commission?

Question

My flat possession is delayed by two years beyond the agreement date. Can I claim compensation and where should I file — RERA or a consumer forum? What I am unsure about is the procedure — where the application goes, what it costs, and how long builder possession delay matters usually take. A plain explanation of the steps, in order, would help more than a general answer.

MyVakeel Legal Desk · Accepted Answer

The law that applies to builder possession delay here is Real Estate (Regulation and Development) Act 2016, Section 18 and Consumer Protection Act 2019, Section 2(42). The detail below matters, because Real Estate (Regulation and Development) Act 2016, Section 18 draws the line differently depending on what your documents show.

Section 18 of RERA entitles an allottee to refund with interest or, if continuing, to interest for every month of delay till possession, if the promoter fails to deliver on time.

The Supreme Court has held that RERA remedies are in addition to, not in substitution of, the Consumer Protection Act, so you can choose either forum for the same delay.

Filing before both forums simultaneously on the same cause of action can invite an objection of multiplicity, so pick one forum strategically based on relief sought and evidence.

Consumer Commissions can award compensation for mental agony and litigation costs which RERA authorities are more conservative in granting.

For possession-linked EMIs continuing to be paid to a bank despite delay, both RERA and consumer forums have granted relief against the developer directly.

In practice, in this order: 1) Review your builder-buyer agreement for the committed possession date and penalty clause; 2) Send a legal notice to the builder demanding possession, refund or compensation for delay; 3) Decide between RERA and the consumer commission based on the relief you primarily want and file accordingly; 4) Attach payment receipts, agreement copy and all builder correspondence to your complaint.

Timing matters here: Real Estate (Regulation and Development) Act 2016, Section 18 works on limitation periods, so a builder possession delay claim that is right on the merits can still fail if it is brought late. You can post the details on the MyVakeel forum for a practising advocate to review, or book a paid consultation with a Bar Council verified lawyer in consumer law.