RERA Section 18 Refund for Builder Delay - citizen guide 2026

Section 18 of the Real Estate (Regulation and Development) Act 2016 gives you a clear choice the moment your builder misses the agreed possession date: walk away with a full refund of every rupee you paid plus interest, or stay in the project and claim interest for every month of delay until you actually get possession.

Section 18 is the homebuyer's main protection against late possession. It says that if a promoter (builder) cannot give possession on the promised date, the buyer may demand a refund of the whole amount paid plus interest, or choose to continue and receive monthly delay interest until handover. It is a buyer-friendly remedy, not a discretion of the builder.

The governing law is Section 18, Real Estate (Regulation and Development) Act 2016, enforced by the State Real Estate Regulatory Authority (State RERA) where the project is registered. The Act gives you two paths:

1. Withdraw: The promoter must return the entire amount you paid for the flat, together with interest, and may also owe compensation.
2. Continue: If you do not wish to exit, the promoter must pay you interest for every month of delay, from the agreed possession date until the date you actually get possession.

The interest rate is not a single national figure. It is the rate prescribed in your State RERA Rules, which commonly works out to the State Bank of India highest Marginal Cost of Lending Rate plus 2 percent. The exact formula sits in the rules of your state, so always check your own State RERA notification rather than assume one number.

You are not limited to RERA. In M/s Imperia Structures Ltd v. Anil Patni, (2020) 10 SCC 783 (decided 2 November 2020), the Supreme Court held that homebuyers may also seek a refund with interest before consumer forums, and that the RERA Act does not bar remedies under the Consumer Protection Act. The two routes are concurrent and additional, so you may pick whichever suits your case.

RTI angle: State RERA authorities are public authorities under the Right to Information Act 2005. You can file an RTI to your State RERA for the project's registration file, the quarterly progress reports the builder is required to upload, escrow and bank-account disclosures, and the promoter's own filings. These documents are powerful evidence of delay when you argue your Section 18 claim.

1. Confirm the project is registered with your State RERA and note the registration number from the authority's website.
2. Calculate the delay: compare the possession date in your builder-buyer agreement with today's date.
3. Decide your remedy under Section 18: full refund with interest (withdraw) or monthly delay interest (continue).
4. Send a written demand notice to the builder stating your choice and the amount claimed, keeping proof of delivery.
5. File the complaint on your State RERA portal or in the prescribed form, pay the fee fixed by your state rules, and attach all documents.
6. File an RTI with the State RERA for the project file and quarterly progress reports to strengthen your evidence.
7. Attend the hearings; the authority passes an order directing refund or interest, which is executable like a decree.

• Builder-buyer agreement or allotment letter showing the agreed possession date
• All payment receipts and bank statements proving the amount paid
• Home-loan sanction and disbursement letters, if you took a loan
• The project's RERA registration number and details
• Your written demand notice to the builder and its delivery proof
• Any emails or letters from the builder admitting or explaining the delay

• Assuming one fixed interest rate. Under Section 18, the rate comes from your State RERA Rules, not a single all-India figure. Check your state notification.
• Signing a fresh possession date under pressure. Builders often push a revised agreement; this can weaken your Section 18 delay claim.
• Forgetting the consumer-court option. Per Imperia Structures v. Anil Patni, (2020) 10 SCC 783, you can also approach a consumer forum; RERA does not block it.
• Skipping the project file. Not using RTI to get quarterly progress reports leaves your delay claim weaker than it needs to be.

Because the State RERA is a public authority, a short RTI can hand you the exact evidence you need. Ask for the project registration file, the quarterly progress reports the builder uploaded, the approved completion timeline, and any show-cause or penalty notices the authority issued to the promoter.

To: The Public Information Officer
[State] Real Estate Regulatory Authority

Subject: Information under the RTI Act 2005

Please provide, for project registration number ____ (project name ____):
1. A copy of the project registration application and the registration certificate.
2. Copies of all quarterly progress reports uploaded by the promoter from registration date to date.
3. Details of the separate escrow/bank account disclosures filed for this project.
4. Copies of any notices or orders issued by the Authority to the promoter for delay.

I enclose the prescribed application fee. I am an Indian citizen.

Name, address, date, signature

Yes. Under Section 18 of RERA 2016, if the builder misses the agreed possession date and you choose to withdraw, the promoter must refund the entire amount you paid plus interest. You can also claim compensation in addition.

The rate is the one prescribed in your State RERA Rules, which commonly equals the State Bank of India highest Marginal Cost of Lending Rate plus 2 percent. There is no single national figure, so check your own state's notification.

You can stay in the project. Section 18 then requires the builder to pay you interest for every month of delay, from the agreed possession date until you actually receive possession.

Yes. In M/s Imperia Structures Ltd v. Anil Patni, (2020) 10 SCC 783, the Supreme Court held that homebuyers may also seek refund with interest before consumer forums and that RERA does not bar Consumer Protection Act remedies. The remedies are concurrent.

State RERA authorities are public authorities under the RTI Act 2005. An RTI can get you the project registration file, the builder's quarterly progress reports, and escrow disclosures, which are strong proof of delay before the authority.

Yes. A State RERA authority's order directing refund or interest is executable. If the builder does not comply, you can seek recovery through the execution process the authority provides.

Section 18 applies to registered real estate projects under the Act where the promoter fails to give possession by the agreed date. Always confirm the project's registration with your State RERA before filing.

• Real Estate (Regulation and Development) Act 2016, Section 18 - https://www.indiacode.nic.in
• M/s Imperia Structures Ltd v. Anil Patni, (2020) 10 SCC 783 - https://main.sci.gov.in
• Your State Real Estate Regulatory Authority portal (check your state RERA website for rules and the prescribed interest rate)
• Right to Information Act 2005 - https://rti.gov.in

• Draft your RTI to the State RERA with the AI RTI tool
• File a first appeal if your RTI is ignored
• Raise your grievance with Awaaz RTI
• Read the RTI Act 2005 guide
• The RTI Playbook