Delay in possession is the single most common grievance brought before Real Estate Regulatory Authorities.
The Real Estate (Regulation and Development) Act, 2016 treats the promised date of possession as a statutory commitment, not a soft target. When the promoter fails to meet it, the allottee is given a defined set of rights.
What Counts as Delay
The reference point is the date of completion or handover stated in the agreement for sale, read with the project's registered completion date. A delay arises when possession is not given by that date, regardless of the reasons the promoter offers, unless the Act or the agreement lawfully excuses it.
The Section 18 Choice
Section 18 of the Act gives the allottee a choice where the promoter fails to complete or hand over possession by the agreed date:
- Withdraw from the project and claim a refund of the amount paid, together with interest and, where applicable, compensation.
- Continue with the project and claim interest from the promoter for every month of delay until possession is handed over.
The choice belongs to the allottee, not the promoter. It is a significant decision, because withdrawing ends the allotment while continuing preserves the flat but ties up the money for longer.
Interest for Delay
Interest is payable at the rate prescribed under the applicable State RERA rules. The rules typically link the rate to a benchmark lending rate with a fixed margin, and the same rate applies both ways — to the promoter for delay and to the allottee for default in payment.
Compensation and the Adjudicating Officer
Claims for compensation, as distinct from interest, are decided by the adjudicating officer under Section 71 of the Act. Interest for delay is ordinarily dealt with by the Authority. Framing the relief correctly at the filing stage avoids the complaint being sent to the wrong forum.
Evidence to Preserve
A delay complaint is largely documentary. Useful material includes:
- The agreement for sale showing the promised possession date.
- All payment receipts and bank statements.
- The project's RERA registration page and revised completion dates, if any.
- Written correspondence and any demand notices from the promoter.
- Emails or letters recording the builder's reasons for delay.
RERA, Consumer Forums and Civil Courts
A homebuyer may have parallel remedies. RERA is specialised and generally faster for project-related defaults. Consumer forums address deficiency in service. Civil courts deal with questions RERA cannot decide, such as title. Pursuing the same relief in two forums at once is usually counterproductive, so the forum should be chosen deliberately. Our guide to filing a RERA complaint sets out the procedure in detail.
Enforcing an Order
If the promoter does not comply with an order, the Act provides for enforcement, including recovery of amounts as arrears of land revenue, penalties for non-compliance, and in serious cases action against the project registration. An appeal against the order lies to the Real Estate Appellate Tribunal within the prescribed period.
When to Seek Professional Guidance
Choosing between refund and interest, quantifying the claim, and framing relief before the correct forum are decisions with lasting financial consequences. Where large sums, multiple allottees, or a contested completion date are involved, individual advice is prudent.