Legal information notice: this article provides general information and isn't a substitute for advice from a qualified lawyer.
You paid installments on time, the promised possession date has long passed, and the builder keeps offering vague new timelines. Delayed possession is one of the most common real estate disputes in India — and since RERA came into force, buyers have a clear, enforceable remedy that many still don’t fully know how to use.
Under Section 18 of the Real Estate (Regulation and Development) Act, 2016, if a builder fails to hand over possession by the date promised in your agreement, you have two clear options:
The interest rate is typically SBI’s highest MCLR plus 2% — a formula fixed by RERA rules specifically so builders can’t argue about the applicable rate.
Confirm the exact possession date stated in your builder-buyer agreement — this is your baseline for calculating delay, not any informal timeline the builder may have mentioned verbally.
A legal notice demanding either possession with interest for the delay, or a full refund, puts the builder on formal record and often prompts a faster response than informal follow-ups.
Consider whether you still want the property (claim monthly interest until possession) or have lost confidence in the project (withdraw and claim a full refund with interest) — this is your choice under Section 18, not the builder’s.
If the builder doesn’t comply voluntarily, file a complaint with your state’s RERA Authority, which has the power to direct payment of interest or a refund.
RERA orders are directly enforceable, and non-compliance by the builder can result in further penalties, including in some cases imprisonment for persistent non-compliance.
It’s worth calculating your interest entitlement precisely before filing — multiply the total amount you’ve actually paid to the builder by the applicable rate (SBI MCLR + 2%, roughly 10% per annum currently) and by the number of months delayed, divided by 12. Having this exact figure ready, rather than a vague “compensation” demand, makes your RERA complaint significantly stronger and harder to dispute.
Many buyers don’t realize the choice between continuing with interest versus exiting with a full refund is genuinely theirs to make, not something the builder can decide for them or delay indefinitely by continuing to push back the possession date. If a builder has repeatedly missed multiple revised deadlines, that pattern itself is often a strong basis for choosing to exit rather than continue waiting.
Before deciding, here’s how the two remedies actually compare:
| Option | Best For |
|---|---|
| Continue, Claim Monthly Interest | You still want the property and believe the project will eventually complete |
| Withdraw, Claim Full Refund + Interest | You've lost confidence in the project, or need your money back for other plans |
File your complaint with the Real Estate Regulatory Authority (RERA) of the state where the project is located. Most states now offer online filing through their respective RERA portals, alongside the traditional Consumer Commission as an alternative avenue.
RERA complaint filing fees are relatively modest and vary by state, calculated based on your specific claim. This is generally far less expensive than a full civil suit for the same relief.
Many buyers file RERA complaints directly, especially since the process is designed to be more accessible than regular civil courts. That said, a property lawyer can help you calculate your exact entitlement correctly and present the strongest possible case, particularly for complex or high-value claims.
Need professional legal help with this?
Find a Property Lawyer on VidyodayIf your dispute with the builder also involves other issues — like an incorrectly registered sale deed or a mutation dispute — see our related guides on cancelling a fraudulent sale deed or challenging property mutation.
All projects above a certain size threshold are legally required to register with RERA — if yours isn’t registered when it should be, this is itself a violation you can report, and you may still have remedies through the Consumer Commission.
You can claim interest for the full period of delay, calculated from the promised possession date in your agreement, not just from whenever you happen to file your complaint.
RERA Authorities have considered force majeure extensions in specific documented circumstances, but a builder can’t indefinitely extend timelines by broadly citing this — check whether a genuine, specific extension was actually granted for your project.
Generally, RERA is the primary specialized forum for this specific issue, though there can be some overlap in remedies — a lawyer can advise on the best approach for your specific facts to avoid pursuing conflicting claims simultaneously.
RERA proceedings are generally faster than regular civil courts, often resolving within several months, though this varies by state and case complexity.
You can still claim the interest owed for the period of delay up until you actually took possession, even after the fact.
RERA specifically applies to real estate projects — under-construction properties bought directly from a promoter/builder are squarely covered; resale of a completed property from another individual isn’t the same kind of transaction under this Act.
Yes — most state RERA websites let you search registered projects and check their status, including any complaints or timeline extensions on record.
This article is for general information only and does not constitute legal advice. RERA rules and interest calculations can vary by state — consult a property lawyer or your state’s RERA Authority for guidance specific to your situation.
