Builder is delaying possession of my flat. How do I get a refund under RERA?

Under Section 18 of the Real Estate (Regulation and Development) Act, 2016 (RERA), an allottee gets an unconditional right to withdraw and claim a full refund if the promoter:

(1) Fails to complete or hand over possession by the date specified in the agreement;
(2) Discontinues business as a developer due to suspension or revocation of registration;
(3) Fails to comply with provisions of the Act.

The right is absolute — the Supreme Court in Newtech Promoters and Developers v. State of U.P., (2022) 6 SCC 462 held that it is not contingent on any clause in the buyer-seller agreement. Even if the agreement caps your rights, the statutory remedy under Section 18 prevails. Alternatively, you can choose to continue and claim monthly interest until possession.

Each state RERA prescribes the rate. The most common formula is SBI's highest Marginal Cost of Lending Rate (MCLR) + 2%, which works out to roughly 10-11% per annum in 2026 — significantly higher than typical FD rates.

Interest accrues from the date each instalment was paid by you, not from the date of withdrawal. So if you paid ₹30 lakh across 2020-2024, interest is computed instalment-wise from each payment date until refund.

You may also be entitled to compensation under Section 18(1)(b), separately from interest — for proven losses such as rental outgo, opportunity cost, mental agony. RERA Authorities have awarded ₹5,000-₹50,000 per month as compensation in delayed-possession cases.

Combined with interest, a successful Section 18 claim often results in 30-50% more than the original investment.

Step 1 — Verify project registration. Search your state's RERA portal — e.g., MahaRERA, UP RERA, K-RERA. If the project isn't registered, that's an independent ground.

Step 2 — Send a written notice to the promoter invoking Section 18 and giving 15-30 days to refund.

Step 3 — File the online complaint. Most state portals have a 'File Complaint' option. Fee is nominal — typically ₹1,000-₹5,000.

Step 4 — Attach evidence — sale agreement, payment receipts, communications, project advertisements showing promised possession date, screenshots of project registration page showing delays.

Step 5 — Hearing. The RERA Authority must dispose of the complaint within 60 days, though delays are common. Most cases are decided in 6-12 months.

Step 6 — Execution. If the promoter doesn't comply, file an execution petition under Section 40 — RERA can attach property and sell it to recover dues. Appeals lie to the Real Estate Appellate Tribunal.

Yes — though not in parallel. The Supreme Court has held that both RERA and Consumer Protection Act remedies are available, but generally the same dispute cannot be pursued in both forums simultaneously. You choose:

(1) RERA Authority — faster, lower fees, technical real-estate expertise, good for unconditional Section 18 claims;
(2) National/State Consumer Commission — higher monetary jurisdiction at the National level (over ₹2 crore), can award broader damages including punitive damages, and has well-established precedents for builder-buyer disputes.

For projects not registered under RERA, the Consumer Commission may be the only forum — see our consumer complaint guide.

If the project pre-dates RERA (i.e., was launched before 1 May 2017), Consumer Court is often the better venue.

Strongly recommended, though not legally mandatory. RERA proceedings are quasi-judicial — you can appear in person, but most allottees find the technical pleadings, evidence rules, and project-specific arguments require professional help.

A reputable, specialised real estate (RERA) lawyer will:

(1) Draft a strong complaint that addresses both the refund and compensation;
(2) Calculate interest accurately (often disputed by builders);
(3) Respond to the developer's typical defences (force majeure, COVID, regulatory delays);
(4) Handle the appeal to the Tribunal if needed;
(5) Pursue execution if the developer ignores the order.

Lawyer's fees for a RERA matter typically run ₹25,000-₹1,00,000 for the proceedings end-to-end. Some lawyers accept partial-contingency arrangements — a smaller upfront fee plus a percentage of the recovered amount. See our guide on finding a real estate lawyer.