Key points
- Under Section 18, if the promoter fails to deliver by the date in the agreement, the allottee can withdraw and claim a full refund with interest, or continue and claim interest for every month of delay.
- Interest is at the rate prescribed by the state rules, typically SBI's highest MCLR plus 2%.
- RERA orders are executed as decrees; a further appeal lies to the Real Estate Appellate Tribunal with a pre-deposit by the promoter.
Step by step
- Gather documents
The builder-buyer agreement, allotment letter, payment receipts, bank statements, demand letters and all correspondence about the delay. Check the project's RERA registration and its declared completion date on the authority's website. - Choose the remedy
Refund with interest if you want out of the project; delay interest and possession if the project is likely to complete. Compensation for mental agony or rent paid is claimed separately before the Adjudicating Officer under Section 71. - File online
File the complaint on the RERA authority's portal (for Delhi, the Delhi RERA; for NCR projects, the UP or Haryana authority where the project is located) with the fee, the facts and the relief claimed. - Hearing
The authority issues notice, the promoter replies, and the matter is heard, usually in a few hearings. Orders are expected within 60 days but often take longer. - Execution and appeal
If the promoter does not comply, file an execution application; the authority can issue recovery certificates enforceable as arrears of land revenue. Appeals go to the Appellate Tribunal within 60 days; the promoter must deposit the amount ordered to appeal.
Which forum: RERA, consumer commission or NCLT?
The Supreme Court has held that RERA, the Consumer Protection Act and the IBC provide concurrent remedies (Imperia Structures v. Anil Patni, 2020; Pioneer Urban, 2019). RERA is the fastest for individual refund and interest claims; the consumer commission suits claims that include compensation and where the buyer prefers a court-like process; the IBC is for groups of buyers facing an insolvent developer. Once CIRP begins, RERA proceedings are stayed.
Force majeure and extensions
Promoters commonly argue COVID-19 or authority delays. Extensions granted by the authority under Section 6 are limited and do not automatically excuse delay under the agreement.
Frequently asked questions
Does RERA apply to projects registered before 2016?
Ongoing projects without completion certificates on 1 May 2017 had to register, and the Act applies to them. Fully completed projects before that date are outside RERA.
Can I claim refund if I have taken possession?
No. After possession, the remedy is delay interest and compensation, and claims for defects under Section 14(3) within five years.
Related practice area: Property, Real Estate & Waqf
This article is for general information and does not constitute legal advice. Laws, rules and limitation periods change and depend on the facts; please take advice on your own situation before acting. Reading this article does not create a lawyer-client relationship with Akhtars Legalitarian.