Delayed Possession Under RERA
Delayed possession is no longer just a contractual inconvenience; it is a statutory violation with clear financial consequences. Section 18 of the Real Estate (Regulation and Development) Act, 2016, provides robust legal protection for buyers facing project delays.
Your Rights Under Section 18
Under RERA (Section 18), if a developer fails to deliver possession by the agreed date (including grace periods), homebuyers are legally entitled to two main options:
1. Withdraw from the Project (Full Refund)
If the buyer is unhappy with the delay, they can demand a full refund. As per Section 18(1), if the builder does not complete the project on time as stated in the sale agreement, they must return the buyer's money along with interest.
2. Stay in the Project (Claim Monthly Interest)
If the buyer chooses to continue with the project, the promoter must pay interest for every month of delay until possession is finally handed over. This interest should be automatically paid by the builder from the start of the delay.
The Procedure to Claim Relief
To successfully claim your refund or interest, follow this structured process:
- Gather Evidence: Collect your Agreement for Sale, payment receipts, allotment letter, and written proof of the delay.
- File the Complaint: Section 31 allows any aggrieved person to file a complaint with the RERA Authority. If your claim is strictly for a refund or delayed interest, you apply to the Authority. If you are seeking additional compensation for financial loss, rent paid, or loan interest burdens, you must apply to the Adjudicating Officer appointed under Section 71.
- Hearings and Orders: The authority will issue a notice to the promoter. Both sides will present their case, after which the authority may formally order a refund with interest, monthly interest till possession, or impose penalties on the promoter.
What Happens if the Builder Ignores the Order?
RERA enforcement is strict. If the builder does not comply with the authority's order to refund or pay interest, they could face serious penalties, including a fine of up to 10% of the project's estimated cost, imprisonment, or both.