Remedies for Possession Delay

The choice is yours, not the builder’s. That single point is what most buyers do not know.

What am I entitled to when possession is late?

Checked 6 September 2026.

How much interest, and at what rate?

The Act does not fix the rate. It says the rate is “such rate as may be prescribed”. Each state prescribes it in its own RERA rules.

The common formula is the State Bank of India highest marginal cost of lending rate, plus two percent. That is the wording in rule 15 of the Haryana rules. If SBI’s MCLR is no longer in use, it is replaced by whatever benchmark SBI fixes for lending to the general public.

Two things follow. First, the rate is not a small penalty rate; it is above a home loan rate. Second, the same rate applies both ways. If you fall behind on payments, the builder can charge you on the same basis.

Check your own state’s rule before you calculate. We have verified the Haryana wording. We have not verified every state, and we are not going to print a rate we did not read.

Where do I file, and against whom?

Section 31 lets any aggrieved person file a complaint with the Authority or the adjudicating officer. It covers any violation of the Act or its rules. You may file against the promoter, and an allottees’ association may file too.

Filing as a group is usually stronger. The facts are identical across buyers in one tower. One well-drafted set of facts, filed together, is harder to stall than fifty separate complaints.

The form, manner and fee are set by state rules. Most authorities take filings online.

How long does it actually take?

The Act sets a target of 60 days for the adjudicating officer to decide a compensation application. If he takes longer, he must record his reasons in writing. That is a soft deadline, not a hard one.

Then comes the appeal. A promoter may appeal to the Appellate Tribunal within 60 days. The Tribunal is told to try to decide within 60 days, and to record reasons if it cannot.

So the statutory clock reads a few months. Real timelines run longer. Plan on the order, then the appeal, then execution.

What happens when the builder appeals?

Here the law is on your side, and it is worth knowing before you are told otherwise. Under section 43(5), a promoter’s appeal shall not be entertained unless he first deposits with the Tribunal at least 30% of the penalty. That figure may be higher if the Tribunal says so. In the alternative, he must deposit the total amount payable to you, including interest and compensation.

This is a real deterrent. An appeal filed only to buy time costs the builder cash upfront. Do not accept the argument that an appeal freezes everything at no cost to him.

Refund or interest: which should you take?

Take the interest and stay, in most cases. Here is the reasoning.

A refund returns your money in nominal terms, plus interest. What it does not return is the property price you locked in years ago. If prices in that micro-market have risen, a refund leaves you unable to buy the same thing again. You win the case and lose the flat.

Withdraw when the project is genuinely stuck. Signs of that are concrete. Registration lapsed or revoked. No construction activity for several quarters. The promoter’s other projects in the same city stalled. In those cases the interest keeps running against an asset that may never exist.

Also weigh the loan. If you are already paying EMIs on a disbursed home loan, the delay costs you rent and EMI at the same time. That pushes the decision, and it is a number you can compute exactly.

What weakens your case?

Three things, mostly self-inflicted. Missing your own payment milestones gives the builder a defence and exposes you to interest at the same rate. Signing an addendum that pushes the possession date resets the clock you are relying on. And accepting possession of an incomplete flat, then complaining, muddies what you are claiming for.

Keep the paperwork. The agreement for sale, the payment receipts, the demand letters and every email. Section 18 hangs on the date specified in the agreement, so that document is the case.

Before you buy the next one, read our pages on builder verification and under-construction versus ready property. The second one is really an argument about who carries this risk.