IndiaI booked a flat but the builder hasn't delivered on time. What are my RERA rights?
Under RERA, you can claim monthly interest for delay, cancel the booking and get a full refund with interest, or approach the RERA Authority for compensation — all within strict timelines.
What the Law Says
The Real Estate (Regulation and Development) Act, 2016 (RERA) gives homebuyers strong remedies when builders fail to deliver possession on time.
If the builder fails to hand over possession of your flat by the promised date, Section 18 of the RERA Act gives you three clear options: (1) continue with the agreement and claim monthly interest for every month of delay; (2) withdraw from the project and get a full refund of all amounts paid, plus interest and compensation; or (3) pursue legal remedies before the RERA Authority or Appellate Tribunal.
The interest payable is at least 6% per annum — but many state RERA rules fix it at 10–12% per annum. The builder must refund your money within 45 days of your withdrawal request — though the central Act says 'within such time as may be prescribed', and most state rules specify 30–45 days.
You must file a complaint before the RERA Authority within one year of the delayed possession date. This is the limitation period under Section 71 read with the Limitation Act, 1963.
Statutory TextWhere the promoter fails to give possession of the apartment, plot or building, as the case may be, to the allottee… the promoter shall be liable to pay interest to the allottee for every month of delay…
— Real Estate (Regulation and Development) Act, 2016, s. 18 — Penalty for failure to give possession
Statutory TextThe promoter shall be liable to pay interest and compensation… at such rate as may be prescribed.
— Real Estate (Regulation and Development) Act, 2016, s. 18 — Penalty for failure to give possession
Statutory TextEvery complaint made under this section shall be disposed of within sixty days of its filing.
— Real Estate (Regulation and Development) Act, 2016, s. 71 — Adjudicating Officer
What Courts Have Said
Indian courts have consistently upheld homebuyers’ rights under RERA, especially regarding automatic interest liability and strict timelines for refunds.
Held that Section 18 creates an automatic right to interest — no need to prove loss or negligence; interest starts accruing from the date of delay.
Clarified that the one-year limitation for filing a RERA complaint begins only after the agreed possession date — not from the date of booking or payment.
What to Do
Check your agreement and RERA registration number on your state’s RERA portal (e.g., mahaRERA, UP RERA).
Send a written notice to the builder demanding either possession or refund + interest under Section 18.
File a complaint online with your State RERA Authority within 1 year of the missed possession date.
If the builder doesn’t refund within 30–45 days of your withdrawal request, ask RERA to enforce recovery — including penalties up to 10% of project cost.
Keep all payment receipts, agreement copies, and communication records as evidence.
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.