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RERA — Homebuyer Rights Against Builder Delays
Your rights under RERA when a builder delays possession, misrepresents the project, or refuses a refund. Section 18 refunds, compensation, and how to file a complaint.
Governing law: Real Estate (Regulation and Development) Act, 2016 (RERA) — Sections 3, 4, 12, 13, 18, 19, 31; Real Estate (Regulation and Development) Rules notified by each state
The Real Estate (Regulation and Development) Act, 2016 (RERA) protects homebuyers from builder delays, misrepresentation, and arbitrary cancellations. Every real estate project above 500 sq. m. or with more than 8 apartments must be registered with the State RERA Authority before the builder can advertise or sell. Section 18 is the most important provision for buyers: if the builder fails to give possession by the agreed date, you can either (a) withdraw from the project and demand a full refund with interest (at SBI MCLR + 2%), or (b) stay in the project and demand monthly interest for the delay. The Supreme Court in Newtech Promoters v. State of UP (2021) held these rights to be "absolute and unconditional." A 2025 Supreme Court ruling (GMADA v. Anupam Garg, 2025 INSC 808) further affirmed that compensation for mental agony can be awarded in addition to the statutory interest. Builders who fail to register attract a penalty of up to 10% of project cost (Section 59); continued non-compliance can lead to three years imprisonment.
Frequently Asked Questions
What is my right if the builder delays possession?
Under Section 18 RERA, you have two options: (a) withdraw from the project and get a full refund of all amounts paid, plus interest at SBI MCLR + 2% from the date of payment, or (b) stay in the project and receive monthly interest for each month of delay until actual possession. The Supreme Court has held this right to be absolute and unconditional (Newtech Promoters, 2021).
Source: RERA Act 2016, Section 18
What is my right if the builder delays possession?
Under Section 18 RERA, you have two options: (a) withdraw from the project and get a full refund of all amounts paid, plus interest at SBI MCLR + 2% from the date of payment, or (b) stay in the project and receive monthly interest for each month of delay until actual possession. The Supreme Court has held this right to be absolute and unconditional (Newtech Promoters, 2021).
Source: RERA Act 2016, Section 18
What is the rate of interest a builder must pay for delay?
The interest rate for delay compensation is typically specified in the state RERA rules — most states prescribe SBI''s highest Marginal Cost of Lending Rate (MCLR) plus 2%. This applies to the amounts paid by the buyer from the date of payment.
Source: State RERA Rules under Section 84 of RERA Act 2016
What is the rate of interest a builder must pay for delay?
The interest rate for delay compensation is typically specified in the state RERA rules — most states prescribe SBI''s highest Marginal Cost of Lending Rate (MCLR) plus 2%. This applies to the amounts paid by the buyer from the date of payment.
Source: State RERA Rules under Section 84 of RERA Act 2016
Does RERA apply to all real estate projects?
RERA applies to projects where the land area exceeds 500 sq. m. or the number of apartments exceeds 8 (including all phases). Projects that were fully completed (received completion or occupancy certificate) before RERA commenced in your state are exempt. Ongoing projects were required to register under RERA by the applicable deadline.
Source: RERA Act 2016, Section 3
Does RERA apply to all real estate projects?
RERA applies to projects where the land area exceeds 500 sq. m. or the number of apartments exceeds 8 (including all phases). Projects that were fully completed (received completion or occupancy certificate) before RERA commenced in your state are exempt. Ongoing projects were required to register under RERA by the applicable deadline.
Source: RERA Act 2016, Section 3
How do I check if my project is RERA registered?
Every state has a RERA Authority with a public portal where you can search registered projects by name, city, or registration number. The builder is required to display the RERA registration number in all advertisements and sale documents. For Maharashtra, it is maharera.gov.in; for Delhi, it is dda.delhi.gov.in/rera; for UP, it is up-rera.gov.in.
Source: RERA Act 2016, Section 3
How do I check if my project is RERA registered?
Every state has a RERA Authority with a public portal where you can search registered projects by name, city, or registration number. The builder is required to display the RERA registration number in all advertisements and sale documents. For Maharashtra, it is maharera.gov.in; for Delhi, it is dda.delhi.gov.in/rera; for UP, it is up-rera.gov.in.
Source: RERA Act 2016, Section 3
Can a builder change the layout or specifications after I book?
No — not without your written consent. Section 14 RERA prohibits the builder from making any addition, alteration, or modification to the sanctioned plan, layout, or specifications without the prior written consent of at least two-thirds of the allottees. Minor changes that do not affect structure or safety may be permitted.
Source: RERA Act 2016, Section 14
Can a builder change the layout or specifications after I book?
No — not without your written consent. Section 14 RERA prohibits the builder from making any addition, alteration, or modification to the sanctioned plan, layout, or specifications without the prior written consent of at least two-thirds of the allottees. Minor changes that do not affect structure or safety may be permitted.
Source: RERA Act 2016, Section 14
What can I do if the builder misrepresented the project?
Section 12 RERA entitles you to compensation for any loss caused by false information in advertisements, prospectuses, or representations. You can file a complaint with the RERA Authority seeking compensation from the Adjudicating Officer appointed under the Act.
Source: RERA Act 2016, Sections 12, 31
What can I do if the builder misrepresented the project?
Section 12 RERA entitles you to compensation for any loss caused by false information in advertisements, prospectuses, or representations. You can file a complaint with the RERA Authority seeking compensation from the Adjudicating Officer appointed under the Act.
Source: RERA Act 2016, Sections 12, 31
How do I file a RERA complaint?
File an online complaint on your state''s RERA Authority portal. You will need: your agreement for sale, payment receipts, RERA registration number of the project, and details of the violation. A complaint fee is charged (varies by state, typically Rs. 1,000-5,000). Decisions can be appealed to the RERA Appellate Tribunal and then to the High Court.
Source: RERA Act 2016, Section 31
How do I file a RERA complaint?
File an online complaint on your state''s RERA Authority portal. You will need: your agreement for sale, payment receipts, RERA registration number of the project, and details of the violation. A complaint fee is charged (varies by state, typically Rs. 1,000-5,000). Decisions can be appealed to the RERA Appellate Tribunal and then to the High Court.
Source: RERA Act 2016, Section 31
Can I approach consumer court instead of RERA?
Yes. The Supreme Court in Imperia Structures v. Anil Patni (2020) held that RERA and Consumer Protection Act remedies run concurrently — you can approach the consumer forum (District/State/NCDRC) as an alternative to RERA. However, you cannot pursue both simultaneously for the same cause of action. RERA is generally faster for possession-related disputes.
Source: RERA Act 2016; Consumer Protection Act 2019
Can I approach consumer court instead of RERA?
Yes. The Supreme Court in Imperia Structures v. Anil Patni (2020) held that RERA and Consumer Protection Act remedies run concurrently — you can approach the consumer forum (District/State/NCDRC) as an alternative to RERA. However, you cannot pursue both simultaneously for the same cause of action. RERA is generally faster for possession-related disputes.
Source: RERA Act 2016; Consumer Protection Act 2019
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