RERA Possession Delay Interest Calculator

RERA Section 18 mandates interest at the SBI Marginal Cost of Lending Rate (MCLR) plus 2% per annum. The current SBI 1-year MCLR is 8.95%, making the applicable rate 10.95% p.a. This rate is reset every time SBI announces a new MCLR — check the SBI website before filing. The rate applies on the entire agreement value (not the amount paid), calculated from the date possession was due to the date it is actually handed over.

File a complaint on your state RERA portal (e.g., MahaRERA, RERA Haryana, RERA Karnataka). Attach your registered sale/allotment agreement showing the promised possession date, all payment receipts, and a computation sheet showing the interest claimed. Most state authorities have a dedicated "Section 18 complaint" category. You do not need a lawyer — RERA is a summary quasi-judicial proceeding, though legal help is useful for large amounts.

RERA itself does not prescribe a limitation period for Section 18 complaints, but most state authorities have issued rules capping it at three years from the date the cause of action arises (i.e., from the missed possession date). Some states apply the general Limitation Act. File as early as possible — delay weakens your case and makes it easier for the builder to raise limitation as a defence.

RERA compensation is interest income in your hands and attracts TDS at 10% under Section 194A of the Income Tax Act if paid by a domestic company. The builder is required to deduct TDS and issue Form 16A. However, the RERA authority typically orders the gross amount — TDS is a separate bilateral transaction between you and the builder. Ensure the RERA order specifies the gross interest and that you receive the TDS certificate.

Under RERA Section 18, you have two mutually exclusive options: (a) continue with the project and claim monthly interest from the builder for every month of delay until possession, or (b) withdraw from the project and demand a full refund of all amounts paid plus interest at the same 10.95% rate on the entire agreement value from the date of each payment. Option (b) is better if you have lost confidence in the builder or the project is stuck. Option (a) is better if you still want the flat and expect possession in the near future.

Yes. The Supreme Court of India (Shree Choudhary Real Estate vs CIT, and later assessments) has confirmed that interest received under RERA Section 18 is taxable as "income from other sources" under Section 56 of the Income Tax Act. It is not exempt under Section 10. If you receive ₹5 lakh as delay interest and fall in the 30% slab, you will pay ₹1.5 lakh in tax. Factor this in when deciding Option A vs Option B.

Yes, but RERA is generally faster and more favourable. The Supreme Court has held that RERA and the Consumer Protection Act operate concurrently — you can choose, but you cannot pursue both simultaneously for the same cause of action. RERA is preferred because: (a) state authorities have subject-matter expertise, (b) execution orders are more enforceable, and (c) the flat-rate Section 18 interest formula is clearer than the "deficiency in service" standard under Consumer Protection Act. However, for mental agony, harassment, and exemplary damages, NCDRC/state consumer commissions may award more.

1. Register on your state RERA portal (e.g., MahaRERA, RERA Haryana, KRERA for Karnataka). 2. Create a complainant account and verify your mobile/email. 3. File a new complaint under Section 18 — select "Delayed Possession." 4. Enter project RERA registration number (find it on builder's marketing material or your agreement). 5. Upload documents: registered sale/allotment agreement, all payment receipts (demand letters + bank statements), identity proof. 6. Enter your claim amount — use this calculator for the interest figure. 7. Pay the nominal filing fee (varies by state, typically ₹1,000–₹5,000 for individuals). 8. Attend the hearing date (virtual or physical). RERA orders are typically issued within 60–90 days of the first hearing.