In an eligible RERA case, if possession is not delivered by the agreed time, a buyer may seek a refund and interest or delay interest while remaining in the project. Choose the appropriate relief based on the agreement and the circumstances of the case.
The remedies of withdrawal and remaining in the project under Section 18 of RERA are distinct. The interest rate is determined by the state rules. Not every delay, extension or termination has the same effect. Clearly set out the position regarding the home loan, bank disbursement and any prior settlement in the claim as well.
What should you do now?
- Check the possession date in the agreement and the record of any valid extensions.
- Gather your payment schedule, allegations of default and the builder’s responses.
- After making a written demand, file a complaint with the relevant RERA seeking appropriate relief.
Which documents should you keep?
The agreement for sale, allotment documents, payment records, RERA registration details and correspondence about the delay.
Avoid this mistake
Making inconsistent demands for a refund, possession and interest together, without a clear basis, may cause confusion.
A hypothetical example
One buyer wants to take the flat, but the builder is delaying possession. Another buyer wants to exit the project. Their primary relief may differ; clearly state your choice and its legal basis in the complaint.
Is the interest rate the same in every state?
No. The applicable state rules and the calculation in the order must be considered.
Legal basis and useful source
This is general legal information. Advice may differ depending on your facts, the applicable law and state rules.