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Investing in a home is one of the biggest financial decisions you'll make. But what happens when your builder delays possession or fails to meet the promises made in the agreement? Thanks to Section 18 of the RERA Act, 2016, you don’t have to suffer in silence.
This guide simplifies your legal rights under RERA and provides a step-by-step process to claim refund, interest, or compensation. Whether you're facing delayed possession, a title dispute, or broken promises, this article will empower you to take action.
What Is Section 18 of RERA?
Section 18 of the Real Estate (Regulation and Development) Act, 2016 provides robust protections for homebuyers. It holds builders accountable for delays, false promises, and title defects. If the developer violates the terms of the agreement, the buyer is entitled to:
- Full refund with interest
- Interest for delayed possession
- Compensation for losses
Let’s break down your rights under this section.
1. Right to Full Refund with Interest
If your builder fails to deliver possession within the promised timeline, you can opt to withdraw from the project and demand a full refund along with interest. This right is unconditional — you don’t need to give a reason.
In the landmark case Imperia Structures Ltd vs. Anil Patni (2020), the Supreme Court ruled that this refund right is absolute. Even if construction is complete or an occupancy certificate is issued, the builder cannot deny your refund.
2. Right to Interest for Delay if You Stay Invested
Don’t want to withdraw from the project? You can still claim monthly interest for the delay in possession. The interest is calculated from the date possession was promised until the actual handover.
📌 Example: If the promised delivery was June 2023, but you get the keys in June 2024, you’re entitled to 12 months’ interest.
Even without a registered agreement, you can claim this benefit. Documents like booking letters, brochures, or even emails showing the promised possession date are accepted as proof.
👉 In a 2023 MahaRERA judgment, a buyer received 10.75% annual interest on ₹40 lakh for a two-year delay — all based on an allotment letter alone.
3. Right to Compensation for Title Defect or Breach
If the builder sells a property with a defective or disputed land title, you can claim compensation. The law does not place any time limit on filing such claims.
You can also demand compensation if the builder fails to deliver on any commitments — such as amenities, carpet area, or construction quality — made in the agreement or promotional material.
All such claims are handled by a special Adjudicating Officer (AO) under RERA.
📌 Note: The Supreme Court in Newtech Promoters vs. State of UP upheld the jurisdiction of both the RERA Authority (for refund and interest) and the AO (for compensation).
Step-by-Step: How to File a Claim Under RERA Section 18
Step 1: Collect Key Documents
Gather strong proof, such as:
- Sale agreement or booking letter
- Payment receipts
- Emails, brochures, or allotment letters showing possession date
- Proof of delay (rent receipts, legal notices, etc.)
Step 2: Choose the Right Forum
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For refund or interest: File your complaint with your State RERA Authority.
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For compensation: Apply before the Adjudicating Officer (AO) under RERA.
⚠️ If you're claiming both, you may need to file two separate applications.
Step 3: Visit Your State’s RERA Portal
Examples of RERA portals:
- Maharashtra – maharera.mahaonline.gov.in
- Uttar Pradesh – up-rera.in
- Haryana – haryanarera.gov.in
Look for the Complaint Registration section.
Step 4: Register and File Online
- Create an account on the RERA website
- Fill out the complaint form
- Attach all relevant documents
- Pay the complaint fee (₹1,000 to ₹5,000 depending on state)
Most states allow full digital filing; some may require physical copies.
Step 5: Attend the Hearing
After registration, you’ll receive a notice with a hearing date. You may appear in person or with a lawyer. If the authority finds your complaint valid, it will pass an order in your favour.
Step 6: Receive and Enforce the Order
Once the final written order is passed:
- If in your favour, the builder will be directed to pay refund, interest, or compensation
- If the builder fails to comply, file an execution application to enforce the order
The RERA Authority can initiate asset attachment or recovery proceedings against non-compliant builders.
Pro Tips to Strengthen Your Case
- Save every document and email communication from your builder
- Maintain proof of rent payments or financial stress due to delay
- Use screenshots or printed brochures to show false promises
- Always respond in writing to your builder’s updates — it creates a legal trail
- Consult a real estate lawyer if your claim is large or complicated
Conclusion
Section 18 of the RERA Act, 2016, empowers you to claim justice against delays, fraud, and broken promises. Whether you seek a refund, interest, or compensation, knowing your rights and using the right procedure can help you recover your investment.
If your builder is not fulfilling their commitments, don’t wait — take action through RERA and protect your rights.
FAQs: RERA Refund and Compensation
Q1. Can I claim a refund even if the project is complete?
Yes, Section 18 allows you to claim a refund for delay, even if construction is over.
Q2. Do I need a registered agreement to claim interest?
No. Booking letters or brochures with promised possession dates are acceptable.
Q3. What if the builder has transferred the project to someone else?
You can still file your complaint under RERA against the original promoter or new developer.
Q4. How long does it take to get a refund after the order?
It varies, but most RERA orders are enforced within 60–90 days if not challenged.
Q5. Is hiring a lawyer necessary?
Not mandatory, but a lawyer can help in complex or high-value claims.
Q6. Can I claim compensation for poor construction quality?
Yes, if the builder violates the agreement or construction standards, you can claim compensation.
Q7. What is the interest rate paid by the builder for delays?
The rate is specified by each State RERA. It typically ranges from 9% to 12% annually.
Q8. Can I file a complaint if I bought the property in resale?
Yes, if you are the current allottee and have valid documents, you can file under RERA.