Builder Delayed Your Possession? Here's What RERA Entitles You To
A delayed handover isn't just an inconvenience under RERA — it's a defined right to either a full refund with interest, or continued interest until possession.
- Act
- Real Estate (Regulation and Development) Act, 2016 (2016)
- Act number
- Act No. 16 of 2016
- Enacting authority
- Parliament of India
- Real Estate (Regulation and Development) Act, 2016 — full text (India Code)
- India Code — official Act record
This article is for general information only and does not constitute legal advice. Always verify current provisions against the official source before relying on them.
Two remedies, buyer's choice
If a project misses its RERA-registered possession date, the buyer can choose to withdraw and receive a full refund of the amount paid, or continue with the project and receive monthly interest on the amount paid for every month of delay.
How the interest is calculated
Delay interest is typically pegged to SBI's Marginal Cost of Lending Rate (MCLR) plus a fixed margin (commonly +2%) per annum, calculated on the total amount paid, from the promised possession date up to the date of actual possession or refund.
What counts as a valid delay complaint
Possession delay beyond the RERA-registered date is the single most common ground for a complaint, followed by carpet area discrepancies, hidden charges added at the time of handover and possession offered without a valid Occupancy Certificate.
Evidence to keep ready
The allotment letter, the agreement for sale, every payment receipt and bank transaction record and all written communication with the builder — these are the core documents a state RERA authority will ask for when a delay complaint is filed.