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? I have been reading conflicting things online and I would like to understand what Indian law actually says about this, which Act and Section applies, what the realistic timelines and costs are, and what I should be doing right now to protect my position. If the matter can be resolved without litigation I would prefer that route, but I want to know what my rights are before I agree to anything or sign any document.

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. The short answer is set out below, followed by the practical steps most people in this situation need to take. Read it alongside the specific provisions named, because the exact relief available to you turns on the facts you can prove on paper.

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 the other side has already issued a notice, filed a case or set a deadline, treat the matter as time-sensitive — most remedies under RERA Act 2016, Section 18 carry limitation periods, and a delay you cannot explain weakens an otherwise strong case. 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 this practice area.