Legal notices

Legal notice to a builder for delayed possession

If a builder has not handed over your flat by the date in the agreement, the law gives you a choice: leave the project and get your money back with interest, or stay and be paid interest for every month of delay. A notice to the builder puts your claim and your choice on record before a complaint to RERA or a consumer commission.

Law checked on 9 November 2026.

Your choice (RERA s.18): Refund with interest, or interest for each month of delay
Interest rate: Set by State rules, often SBI highest MCLR + 2%
Where to complain: RERA or consumer commission, your choice
Consumer complaint time limit: Two years from the cause of action

What RERA gives you

Section 18 of the Real Estate (Regulation and Development) Act, 2016 applies when a promoter fails to complete the project or give possession by the date in the agreement for sale. You may withdraw and get back what you paid, with interest at the prescribed rate and compensation. If you do not withdraw, the promoter must pay you interest at that rate for every month of delay until possession.

Each State's RERA rules fix the rate; most, Maharashtra and Haryana among them, use the State Bank of India's highest marginal cost of lending rate plus 2%. The RERA Authority orders the refund and interest, and its adjudicating officer decides compensation (Sections 31 and 71), as the Supreme Court explained in Newtech Promoters v State of UP (2021).

RERA or the consumer commission

You can choose. In Imperia Structures v Anil Patni (2020) the Supreme Court held that RERA does not stop a home buyer from going to the consumer commission: Section 79 of RERA bars only civil courts, and Section 88 keeps other laws in force.

Under the Consumer Protection Act, 2019, the commission depends on what you paid: up to Rs 50 lakh the District Commission, over Rs 50 lakh and up to Rs 2 crore the State Commission, above that the National Commission (2021 jurisdiction rules). A consumer complaint has to be filed within two years of the cause of action (Section 69). A RERA complaint goes to the State's Authority, usually online.

What the notice should say

Add the project's RERA registration number from the State RERA website. Builder agreements often have their own small delay penalty; the Supreme Court has refused to hold buyers to one-sided terms (Pioneer Urban Land v Govindan Raghavan, 2019).

The agreement date, the flat, the price, and what you have paid, with the receipts.
The possession date the agreement promised, and that it has passed.
Your choice: a refund with interest, or interest for the delay until possession, at the rate in your State's RERA rules.
Any other claims, such as rent you paid meanwhile or charges the agreement does not allow.
A deadline, and that you will approach the RERA Authority or the consumer commission if it passes.

Before you send it

Look up the project on the State RERA website: the completion date it registered, any extension, and its quarterly updates.
Unless you are withdrawing, keep paying the instalments that are due: an unpaid instalment can give the builder a ground to cancel under the agreement.

Complaint against a builder: step by step

Other legal notices

Money someone owes youLoans, unpaid invoices, deposits not returned A cheque bouncedThe Section 138 notice and its 30-day limit You got a cheque bounce noticeYour 15 days, and what to check Ending a tenancySection 106 notice and State rent laws DivorceWhether a notice is needed, and the court notice Suing the GovernmentSection 80 CPC notice and the two-month wait DefamationFalse statements that harm your reputation Unpaid salaryWages, final settlement and where to complain A consumer complaintDefective goods, poor service, refunds Sending a notice onlineWhat works, and the proof to keep All about legal noticesWhen one is compulsory, sending, replying

Talk to an advocate about your notice Tell us what the notice is about, or what you want to claim. Sending an enquiry is free. It goes to advocates who handle this kind of matter, and your number goes only to those who open it.

Questions people ask

Can I get a refund if the builder delays possession?

Yes. Under Section 18 of RERA you can withdraw and get back what you paid, with interest at the rate in your State's rules, and compensation. If you would rather stay, the builder must pay interest for each month of delay until possession.

Should I go to RERA or the consumer commission?

Either; the Supreme Court held in Imperia Structures v Anil Patni (2020) that the buyer may choose. RERA is built for disputes with builders and applies a fixed interest rate; a consumer commission can also award compensation and costs.

Is a legal notice required before a RERA complaint?

No law requires one. It records your claim and your choice, and some builders settle at this stage.

What rate of interest can I claim?

The rate in your State's RERA rules. Most States use the State Bank of India's highest marginal cost of lending rate plus 2%. RERA also makes the builder pay the same rate the buyer would pay for a late instalment (Section 2(za)).

Sources

Real Estate (Regulation and Development) Act, 2016, Sections 2(za), 18, 31, 71, 79 and 88
Consumer Protection (Jurisdiction) Rules, 2021: PIB release, 30 December 2021
Imperia Structures v Anil Patni, [2020] 12 SCR 373 (Supreme Court)

General information on Indian law, not legal advice for your situation. Time limits and procedure can turn on facts and on State law; an advocate can tell you how they apply to you.