Can I get a refund with interest if the builder delays possession under RERA Section 18?

Question

My builder has delayed possession of my flat by over two years beyond the promised date. Can I claim a refund with interest under RERA? Specifically, I want to know how RERA Act 2016, Section 18 applies to a situation like mine and what the property law position in India actually is. If there is a deadline I should be aware of, I need to know that now.

MyVakeel Legal Desk · Accepted Answer

Can I get a refund with interest if the builder delays possession under RERA Section 18? is governed in India primarily by RERA Act 2016, Section 18, RERA Act 2016, Section 31 and RERA Act 2016, Section 43. Outcomes in rera section 18 disputes depend heavily on documentation, so check what you can actually evidence as you read.

Section 18 entitles an allottee to a full refund of the amount paid, along with interest at the rate prescribed by state RERA rules, if the promoter fails to complete or hand over possession by the date stated in the agreement.

Alternatively, the allottee can choose to continue with the project and instead claim interest for every month of delay until possession is handed over.

This right under Section 18 is independent of any penalty clause in the builder-buyer agreement, and RERA provisions override any less favourable contractual terms by virtue of Section 89.

Complaints for refund or interest are filed before the state Real Estate Regulatory Authority under Section 31, and appeals against its orders lie to the Real Estate Appellate Tribunal under Section 43 within 60 days.

Courts and RERA authorities have held that force majeure delays, such as genuine regulatory hold-ups, may be excluded from the delay period, but routine construction or funding delays are not excused.

What to do next: 1) Calculate the delay period from the promised possession date in the agreement for sale; 2) Send a written demand to the builder for refund with interest or for delay compensation; 3) File a complaint before the state RERA Authority under Section 31 if the builder does not respond satisfactorily; 4) Appeal to the Real Estate Appellate Tribunal under Section 43 within 60 days if the RERA order is unfavourable.

If you are unsure whether your facts fall inside RERA Act 2016, Section 18, that is worth checking with an advocate before you commit to a route, because switching later costs time. 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 property law.