10 answers on RERA Section 18 interest, refund rights, complaint filing, IBC/NCLT impact, and enforcing delay compensation in India.
Under RERA Section 18, the builder must pay interest at SBI MCLR + 2% per annum on all amounts paid by you, for every month of delay beyond the agreed possession date. As of 2026, SBI MCLR is approximately 8.75%, making the effective interest rate around 10.75% per annum on your invested amount. This is not a flat penalty but a running interest obligation on the builder.
Yes. RERA Section 18(1) gives you the absolute right to demand a full refund of all amounts paid, plus interest at SBI MCLR + 2%, if the builder has not delivered possession by the agreed date. There is no minimum delay period required. You can demand a refund even if delayed by one day — though practically, buyers tend to invoke this right after delays of 6+ months.
Formula: Delay Interest = Total Amount Paid × (SBI MCLR + 2%) × (Days Delayed / 365). Example: If you paid ₹50 lakh and the builder is 2 years late, at 10.75% per annum: ₹50L × 10.75% × 2 = ₹10.75 lakh. Calculate month-by-month on each payment installment for the most accurate figure. Brickplot's possession delay guide has a worked example calculator.
File on your state RERA portal: (1) Register as complainant. (2) File Form-M with your grievance, attaching: sale agreement, all payment receipts, builder communication about delay, and any QPRs showing construction delay. (3) Pay filing fee (₹1,000–₹5,000 by state). (4) Attend hearing scheduled within 30–60 days. (5) RERA adjudicating officer issues order within 60 days of the hearing. RERA orders are enforceable as court decrees.
Under RERA Section 18(1), you have two choices: (A) Withdraw from the project and claim a full refund + interest until actual refund date — this is best if you have lost confidence in the builder or the project. (B) Continue with the project and claim monthly interest until possession — this is best if the project will eventually complete and the location is valuable. You cannot do both; once you file for refund, the agreement is effectively terminated.
Yes. The Supreme Court has held that RERA applies to ongoing projects where Completion Certificate had not been issued by May 2017 (when RERA commenced). Even if you purchased the flat in 2014, if the project was still ongoing in 2017, RERA protections apply. Builders attempted to argue exemption for pre-RERA sales, but courts have consistently rejected this. File your complaint citing RERA Section 18 regardless of purchase year.
An out-of-court settlement with the builder (typically a discount, extra parking, or interest payment) is legally binding if it is in writing and signed by both parties. However, RERA also has a formal mediation mechanism. If you settle outside RERA without including all your claims, you may lose the right to claim the remaining amount later. Get any settlement documented as a formal amendment to the sale agreement, with all future milestones clearly stated.
Yes. You can assign your rights in an under-construction flat to another buyer — this is called "assignment of agreement". The builder must cooperate and transfer the allottee rights. Under RERA, builders cannot charge excessive assignment fees (typically 1–2% is market norm). However, assignment value depends on the builder's reputation and project status — a delayed project may fetch less than your investment cost.
If the builder ignores a RERA order within the specified time: (1) File an execution petition with the RERA authority. (2) RERA can then issue a recovery certificate treated as a decree of a civil court. (3) RERA can direct the Revenue Recovery Officer to recover the amount by attachment of builder's property or bank accounts. (4) Non-compliance with RERA orders also invites criminal prosecution — up to 3 years imprisonment under RERA Section 63.
Homebuyers were classified as financial creditors under IBC (2018 amendment). This means you have a seat at the resolution table. In the IBC process, a Resolution Professional (RP) takes over and prepares a resolution plan within 270 days. If the plan succeeds, a new builder/acquirer takes over and completes the project. If no plan is approved, the company liquidates — and buyers may recover only a fraction of their investment. File your claim with the RP immediately upon receiving the NCLT notice.