If a builder misses the possession date or never properly allots your flat, you may be able to seek either an exit with refund, prescribed interest and compensation, or continued possession with interest for each month of delay. The main route is section 18 of the Real Estate (Regulation and Development) Act, 2016 (RERA). Your agreement for sale, the project’s state rules, payment record, approvals and procedural history determine what you can realistically claim. This is general legal information, not a prediction of the result in an individual case.
What section 18 of RERA lets a homebuyer claim
Section 18(1) applies when a promoter fails to complete the project or cannot give possession in accordance with the agreement for sale or by the date specified in it. It also covers specified situations in which the promoter discontinues the business or cannot complete the development. The section gives the allottee a fundamental choice: withdraw from the project or remain in it.
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Option 1: Withdraw and seek a refund
If you no longer want the flat, you can demand return of the amount received by the promoter for that flat, together with interest at the rate prescribed under the rules applicable in the state where the project is located. Section 18(1) also provides for compensation in the manner set out in the Act. The refund claim is normally built from the sums actually paid and the legally applicable interest calculation; do not assume that a brochure price, an unproved escalation amount or an unrecorded payment will be included.
“Compensation” is fact-specific. You may need to establish the loss caused by the promoter’s breach and use the statutory adjudication process where the claim falls within sections 12, 14, 18 or 19. A demand for refund is therefore different from an automatic entitlement to every consequential expense you have incurred.
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Option 2: Stay and claim monthly delay interest
If you still want the unit, the proviso to section 18(1) provides:
“he shall be paid, by the promoter, interest for every month of delay, till the handing over of the possession, at such rate as may be prescribed.”
This is a continuing claim rather than a one-time payment. The relevant start date is generally tied to the possession obligation in the agreement, subject to any legally effective extension or other fact that changes the contractual timeline. Interest continues until possession is handed over, but the exact rate must be taken from the rules for the project’s state; RERA does not create one nationwide percentage.
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1Repair Windows errors before they cause bigger problems2Fix the driver behind crashes, sound loss and screen glitches3Clear out junk files and repair common Windows errors| Decision | Primary relief under section 18(1) | Information needed |
|---|---|---|
| Withdraw | Return of amounts received, prescribed interest and compensation as permitted by the Act | Payments, agreement, promised date, delay evidence, demand for refund and documented losses |
| Remain in project | Prescribed interest for each month of delay until possession | Possession deadline, valid extensions, written offers, approvals and month-by-month delay period |
“Failure to allot” is not one legal fact pattern
Before choosing a remedy, identify exactly what the promoter did or failed to do. “The builder never allotted my flat” could mean several different events:
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- The promoter cancelled an allotment after taking money.
- The promoter accepted bookings but never executed the agreement for sale.
- The promised unit was unavailable, re-numbered or allotted to someone else.
- The promoter failed to perform a connected obligation under the agreement or RERA.
- The promoter stopped the project or abandoned the development.
These situations may involve section 18(1), but they do not have identical facts or automatic relief. Preserve the allotment letter, booking form, payment receipts, correspondence, cancellation notice, revised unit details and every written explanation for the failure. A complaint should ask for a remedy that matches the event: refund and interest, possession of the contracted unit, an alternative unit only if you agree to it, compensation, or another order available under the statute.
Other RERA claims that may accompany delay
Defective title
Section 18 also addresses loss caused by defective title to the land. If a title defect prevents lawful possession or causes a measurable loss, identify the defect and the documents showing its effect. A general allegation that the title is “unclear” is weaker than a documented encumbrance, litigation record or authority finding.
Unmet promoter obligations
Section 18(3) concerns compensation for a promoter’s failure to discharge other obligations under RERA, the rules, regulations or the agreement for sale. Examples depend on the contract and project record. Keep the specific clause, promised service, due date and evidence of breach together; do not treat every construction complaint as a possession-delay claim.
Representations and statutory duties
Where the complaint concerns a representation, disclosure or obligation covered by sections 12, 14, 18 or 19, compensation may require adjudication under section 71. The forum and procedure depend on the state’s RERA framework and the relief requested.
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How the possession date is assessed
Start with the agreement for sale
Locate the clause that states the possession date, the construction or completion obligation, and any grace period. Compare that date with your payment schedule and the promoter’s actual performance. A booking form, marketing promise and later agreement may contain different dates; the legally relevant date can depend on the executed contract and the facts surrounding it.
Check extensions and force-majeure language
Do not assume that every extension printed in a letter or circulated in a group is valid. Check the agreement, applicable state rules, authority orders and the reason given for the extension. Record whether you consented, objected or continued making payments after receiving the notice.
Examine any possession offer
A late offer does not automatically eliminate the delay period. Check the date of the offer, whether the unit is the one contracted for, whether the required approvals and completion documents are in place, and whether the offer imposes new charges or waivers. A letter merely inviting you to inspect an unfinished unit is not necessarily the same as lawful handover.
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The Supreme Court has examined whether buyers must accept delayed offers and whether a stipulated delay-compensation clause was adequate. In IREO Grace Realtech Pvt. Ltd. v. Abhishek Khanna & Ors., decided 11 January 2021, the Court found the fixed amount in that agreement inadequate on the facts before it. That decision does not set a universal interest rate or invalidate every contractual clause. Your clause, project timeline and evidence still matter.
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Refund or possession: a practical decision framework
| Question | Refund route | Stay-and-claim route |
|---|---|---|
| What do you want? | End the purchase and recover money | Receive the flat despite delay |
| Main financial claim | Amounts paid plus prescribed interest; compensation where established | Prescribed interest for every month of delay until possession |
| Main risk | Recovery may require proceedings and the project’s financial condition may affect enforcement | Further construction, approval or quality problems may continue |
| Documents to emphasize | Payment ledger, refund demand, cancellation or non-allotment evidence | Possession deadline, delay months, inspection reports and approval status |
| Effect of a later offer | Assess whether accepting it would undermine the withdrawal position | Assess whether it is a lawful, complete and contract-compliant offer |
Ask a lawyer to assess the consequences before signing a possession acceptance, revised agreement, settlement, waiver or “full and final” receipt. A document can alter the procedural posture even when it does not erase earlier facts.
RERA authority or consumer forum?
The Supreme Court has explained that RERA remedies are “without prejudice to any other remedy available.” It also held that section 79, which bars civil courts from matters assigned to RERA bodies, does not bar consumer forums. In IREO Grace Realtech Pvt. Ltd. v. Abhishek Khanna & Ors., the Court described an allottee’s choice to initiate appropriate consumer-protection proceedings or file under RERA.
| Forum | When it may fit | Important qualification |
|---|---|---|
| State RERA authority | Relief connected to a registered project, promoter duties, possession, refund or statutory compliance | Use the current state portal, forms, fee and rules; procedures are not identical nationwide |
| Adjudicating officer under the state RERA framework | Compensation claims falling within the statutory adjudication scheme, including sections 12, 14, 18 and 19 | Confirm which relief belongs before the authority and which belongs before the adjudicating officer |
| Consumer forum | Consumer-protection proceedings concerning deficient service or unfair conduct, subject to jurisdiction and procedural rules | The choice of forum is not a promise of double recovery; account for any case already filed or relief already obtained |
Do not file parallel cases simply to multiply pressure. Discuss limitation, jurisdiction, the relief sought and the procedural stage with counsel. The Supreme Court’s statement about choice of forum does not guarantee that two proceedings can produce two recoveries for the same loss.
Documents and calculations to prepare
Organize your evidence before sending a legal notice or filing a complaint. A clear chronology often matters as much as the amount claimed.
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- Agreement set: Keep the allotment letter, agreement for sale, annexures, payment plan, possession clause, grace-period wording and delay-compensation clause.
- Payment proof: Prepare a bank-statement extract, receipts, loan-disbursement record and a ledger showing date, amount and purpose of each payment.
- Timeline: List booking, agreement execution, every promised possession date, extension notice, construction milestone, inspection, offer of possession and your responses.
- Approval record: Collect written evidence about completion, occupancy or other approvals relevant to lawful handover. Ask the promoter for missing documents in writing.
- Communications: Preserve emails, registered letters, portal complaints, meeting minutes and messages that acknowledge delay, cancellation or non-allotment.
- Loss evidence: Separate the statutory interest claim from documented additional losses such as rent or finance costs. Keep invoices and a month-by-month calculation rather than an unsupported lump sum.
- Procedural history: Record notices, settlements, withdrawals, prior complaints, orders and payments received. This is essential when considering a second forum or a revised claim.
How to calculate a claim without inventing a rate
There is no single national RERA interest rate that can safely be inserted into every complaint. The prescribed rate is set through the rules applicable to the state in which the project is located. Confirm the current rule and the authority’s interpretation on the date you calculate the claim.
For a continuing-possession claim, identify the start month, remove any period that a valid order or legally effective extension excludes, and calculate interest month by month until the contractual handover is actually completed. For a withdrawal claim, calculate interest on the amounts received, using the legally prescribed method and the dates on which payments were made. State whether the figure is provisional and show the source of each number.
If the agreement contains a fixed delay payment, place it beside the statutory calculation rather than assuming it controls. The contract may provide useful evidence, but a contractual term is not automatically a substitute for the statutory remedy, and the adequacy of a fixed amount is fact-dependent.
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Because RERA administration is state-based, verify the current instructions of the authority where the project is located. A practical sequence is:
- Confirm that the project and promoter details are correctly identified in the state RERA records.
- Read the authority’s current complaint guidance, form, filing fee, document-size rules and service requirements.
- Choose the relief—refund, possession with delay interest, compensation, or a combination that the forum can grant—and explain the legal basis for each.
- Attach the agreement, payment schedule, chronology, correspondence, possession evidence and calculation.
- State the promised date, any asserted extension and why you dispute or accept it.
- Disclose earlier proceedings, settlements, withdrawals and amounts already received.
- Monitor notices and hearing directions, and update the calculation if the delay continues.
For compensation under sections 12, 14, 18 and 19, check whether the state directs the claim to an adjudicating officer under section 71. Forms, fees, electronic filing and hearing practice can change, so rely on the authority’s current instructions rather than a generic national checklist.
Common mistakes that weaken a delayed-possession claim
- Using the brochure date alone: Reconcile marketing material with the executed agreement and any legally valid extension.
- Demanding a rate copied from another state: The prescribed rate is state-specific.
- Accepting a waiver casually: Read possession, settlement and full-and-final documents before signing.
- Calling every non-allotment a possession delay: Describe the exact cancellation, non-execution, unavailability or breach.
- Ignoring approvals: Possession should be assessed against the documents required for lawful handover, not just a key-delivery event.
- Claiming unproved losses: Keep rent, loan, tax and other expenses supported by records and distinguish them from statutory interest.
- Filing duplicate cases: Tell the forum about every earlier proceeding and seek advice on the consequences of choosing a different forum.
What to ask before choosing your next step
- What exact obligation did the promoter miss, and which document proves it?
- Do I want the flat, or has the delay defeated the purpose of buying it?
- What is the possession date after applying the agreement’s wording and any valid extension?
- Which state rule supplies the prescribed interest rate?
- Are approvals complete, and is the written possession offer for the contracted unit?
- Have I signed anything that could be treated as acceptance, waiver or settlement?
- Which forum can grant each part of the relief, and have I already pursued another remedy?
The Supreme Court’s framework leaves the buyer with a meaningful choice, but not a shortcut around proof. A strong claim matches the remedy to the precise failure, uses the state’s prescribed rate, and presents a complete agreement-and-payment timeline.
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