Key takeaway
When a builder fails to give possession by the agreed date, section 18 of RERA lets you either withdraw and get a refund with interest, or stay in the project and receive interest for every month of delay. You can usually choose between the RERA authority and a consumer commission. Decide early which outcome you want — the flat or your money back — because it shapes every step that follows.
This guide helps you choose a remedy. For the mechanics of filing before RERA from abroad, see filing a RERA complaint while living overseas.
Your options under RERA
Under section 18 of the Real Estate (Regulation and Development) Act, 2016, if a promoter fails to complete or give possession in accordance with the agreement:
- Withdraw: you can withdraw from the project and claim a refund of the amount paid with interest at the prescribed rate, plus compensation.
- Stay: if you do not withdraw, you are entitled to interest for every month of delay until possession is handed over.
Complaints go to the state RERA authority. Claims for compensation are decided by the adjudicating officer. Interest rates are prescribed by state RERA rules, typically linked to a bank lending rate.
Consumer commissions
A homebuyer is a “consumer” and delay is a deficiency in service under the Consumer Protection Act, 2019. The Supreme Court has held that the RERA remedy does not take away the right to approach a consumer commission (Imperia Structures Ltd. v. Anil Patni, 2020). Commissions can order refund with interest, compensation and costs. Which level of commission hears the case depends on the value of the consideration paid.
Insolvency
Allottees are treated as financial creditors under the Insolvency and Bankruptcy Code, 2016. A group of allottees meeting the statutory threshold can apply to the NCLT to start insolvency against a defaulting builder. This can protect a project but also freezes other proceedings. It is usually appropriate only when the builder is in serious financial trouble.
Comparing forums
| RERA | Consumer commission | NCLT (insolvency) | |
|---|---|---|---|
| Best for | Registered projects; interest for delay or refund | Refund with compensation; older or unregistered projects | Builder in financial distress |
| Online filing | Most states | Yes (e-Daakhil) | Through counsel |
| Group action | Possible in some states | Class complaints allowed | Threshold of allottees required |
You generally cannot pursue the same relief in two forums at once; choose deliberately.
First steps
- Collect the allotment letter, builder-buyer agreement, payment receipts, bank records, demand letters and correspondence.
- Note the promised possession date and any extension clauses (for example, force majeure).
- Check the project’s RERA registration and quarterly updates on the state RERA website.
- Send a written notice to the builder stating your choice — refund or interest — and a deadline.
- Talk to other buyers; collective complaints carry weight and share costs.
- File in the chosen forum through a lawyer, using a Power of Attorney for steps in India if needed.
If you have a home loan
For a refund, the lender’s dues are usually repaid first. Where you have a subvention or tripartite agreement, check its terms on interest liability during delay.
Frequently asked questions
Can I claim both a refund and compensation?
Yes. Section 18 allows refund with interest and compensation; compensation is decided by the adjudicating officer under RERA or awarded by a consumer commission.
The builder cites COVID or force majeure. Does that end my claim?
Some authorities allowed limited extensions for the pandemic period. It does not excuse unrelated or prolonged delay.
Can NRIs file without travelling?
Yes. Most RERA authorities and the consumer e-filing system accept online complaints, and hearings are often online.
Need help with a builder dispute?
LegalCops connects NRI buyers with independent lawyers for RERA and consumer cases. See NRI builder fraud and RERA lawyer.
Is your flat delayed?
Share the project name, state, agreed possession date and amount paid.
Related guides
- All NRI legal guides
- NRI property in India: the complete legal guide
- Filing a RERA complaint while living overseas
- Filing a consumer complaint from abroad
- How to check a property’s title
References
- Real Estate (Regulation and Development) Act, 2016, sections 18, 31 and 71 — India Code
- Consumer Protection Act, 2019
- Insolvency and Bankruptcy Code, 2016, section 7
- Imperia Structures Ltd. v. Anil Patni, (2020) 10 SCC 783
Last reviewed: November 2026.
The information provided is for general educational purposes only and does not constitute legal advice. Applicable laws and procedures may vary depending on the facts, jurisdiction, and circumstances of each matter. Consult a qualified legal professional before taking action.
