If a builder fails to give possession by the date in your agreement, section 18 of the RERA Act lets you either withdraw and claim a refund of all amounts paid with interest, or stay in the project and receive interest for every month of delay until possession. An NRI can file the complaint online before the state RERA authority through a lawyer or attorney holder, attend hearings by video, and enforce the order as arrears of land revenue if the builder does not pay.
- Law
- Real Estate (Regulation and Development) Act 2016
- Main remedy
- Section 18: refund or delay interest
- Filing
- Online on the state RERA portal
- Key judgment
- Newtech Promoters v. State of UP, 2021
What a RERA complaint against a builder can achieve
The RERA Act applies to projects that must be registered with the state Real Estate Regulatory Authority, including ongoing projects that had not received a completion certificate when the Act came into force in 2017. A complaint under section 31 can be filed for any violation of the Act, the rules or your agreement for sale. The main reliefs are:
| Problem | Relief | Provision |
|---|---|---|
| Possession delayed beyond the agreed date | Refund of all amounts with interest, or interest for each month of delay | Section 18 |
| Builder changes the plan or specifications without consent | Directions to comply, refund or compensation | Section 14 |
| Structural or workmanship defects within five years of possession | Rectification within 30 days, or compensation | Section 14(3) |
| Failure to execute the conveyance deed or hand over to the association | Directions to execute | Sections 11 and 17 |
| Loss beyond interest | Compensation decided by the adjudicating officer | Sections 71 and 72 |
The interest rate is fixed by each state's rules, typically linked to the State Bank of India's highest marginal cost of lending rate plus two per cent.
Your right to a refund
In Newtech Promoters and Developers v. State of UP (2021), the Supreme Court held that the allottee's right to a refund with interest under section 18 is unqualified where the builder fails to complete or give possession as agreed. It does not depend on the builder showing that the delay was its fault, subject only to the terms of the agreement and events genuinely outside its control. The Court also clarified that the Authority itself can order refund and interest, while compensation is for the adjudicating officer.
Before deciding between a refund and staying in, consider the stage of construction, the builder's finances, whether the project is under insolvency, the home loan position, and your plans for the flat. We give a written view on these points before filing.
Building the claim before you file
Most RERA complaints succeed or fail on paperwork that exists before the first hearing. Before filing we work through four questions:
- What was the promised date? The possession date is taken from the agreement for sale, read with any grace period it allows. If no agreement was executed, the allotment letter and the completion date the developer declared to RERA become important. Many authorities extended project timelines for the COVID-19 period under the force majeure provisions, and whether that extension shifts your own possession date is often argued, so we check the orders that apply to your project.
- Was there a valid offer of possession? Authorities have generally held that an offer of possession made without an occupation or completion certificate is not a valid offer. Delay interest can continue to run until a lawful offer is made, and demands for extra charges in the offer letter can be challenged.
- How much has been paid, and when? Interest on a refund is usually calculated from the date of each payment until the date of refund. We prepare a schedule of every instalment, with remittance and bank references, so the Authority can pass an order for a definite sum.
- Have you signed anything since? Addendums, revised payment plans or settlement letters are read closely, because builders rely on them to argue that you accepted a new date or waived interest.
A short legal notice to the builder, sent by email and post, often comes first. It fixes the record of your demand and occasionally produces a settlement offer that can be weighed before the complaint is filed.
How the complaint is filed online
Every state RERA has an online portal. The complaint is filed in the prescribed form with the fee fixed by the state rules, the agreement for sale, allotment letter, payment receipts and correspondence. Some states have separate forms for complaints to the Authority and to the adjudicating officer. Hearings in many states are held in hybrid or online mode, and the Authority is expected to decide complaints quickly, though practice varies by state.
You can file in your own name with a lawyer authorised by vakalatnama, signed abroad and sent as a scan with the original to follow, or through an attorney holder. Where the complaint is filed in your own name, the supporting affidavit is usually sworn before a notary abroad and apostilled or attested by the Indian mission. Where an attorney holder files, a special power of attorney signed abroad must be stamped in India within three months of arrival. We tell you which documents each state portal accepts as scans.
Enforcing the order
Builders often appeal. An appeal lies to the Real Estate Appellate Tribunal within 60 days, and under section 43(5) a promoter must first deposit at least 30% of the penalty, or the total amount payable to the allottee including interest and compensation, before the appeal is heard. That deposit requirement, upheld in Newtech, protects allottees from delaying appeals.
If the builder does not pay, the order can be recovered as arrears of land revenue under section 40, through the district collector, and non-compliance is punishable with penalties under sections 63 and 64. We follow up with the recovery officer so that the order does not remain on paper.
RERA, consumer commission or insolvency
RERA is not the only forum. Allottees can also approach consumer commissions under the Consumer Protection Act 2019, and the Supreme Court in Imperia Structures v. Anil Patni (2020) held that RERA does not bar a consumer complaint. Home buyers are financial creditors under the Insolvency and Bankruptcy Code, but an application against a real estate company needs at least 100 allottees or 10% of the allottees in the project, whichever is less. Where a builder is already in insolvency, claims must be filed with the resolution professional instead.
The choice depends on what you want, which forum is faster in your state, and whether other buyers are acting together. If you are selling a flat you have received, tax rules apply (see TDS on NRI property sale).
Points for NRI buyers
- Keep proof of every payment, especially remittances from abroad and NRE or NRO debits. A refund paid into an NRO account can be repatriated within RBI limits; we can coordinate the repatriation.
- Check that the project is registered with RERA and note its registration number and declared completion date.
- Do not sign a builder's revised schedule or waiver of interest without advice; such documents are often used to defeat later claims.
- If you have a home loan under a tripartite agreement, the bank's dues will usually be paid first out of any refund.
Documents you need
Scans are enough to prepare the complaint. Keep the originals safe.
- Allotment letter and agreement for sale
- All payment receipts and bank or remittance statements
- Builder demand letters and correspondence
- RERA registration details of the project
- Home loan and tripartite agreement, if any
- Passport and OCI card copy
- Vakalatnama or power of attorney signed abroad
How we handle it for you
Assess the claim
We review the agreement, payments and RERA registration and advise on refund or delay interest.
Prepare papers
Complaint, calculation of interest and affidavit, with signing instructions for your country.
File online
Complaint filed on the state RERA portal with the prescribed fee.
Hearings
We appear at hearings, online where allowed, and keep you updated after each date.
Recovery
If the builder defaults, we pursue recovery as arrears of land revenue and penalties.
Why clients choose ProudLegal
Built for clients abroadVideo calls in your time zone and documents signed where you live.
Advocates who appear in Indian courtsYour case is drafted and argued by enrolled advocates in India.
Written fee quote firstScope and fees confirmed in writing before any work starts.
Updates after every stepScans of every filing and order on WhatsApp and email.
Frequently asked questions
Can an NRI file a RERA complaint?
Yes. Any allottee can file, wherever they live. NRIs usually file through a lawyer and, where needed, an attorney holder in India.
Do I have to travel to India for RERA hearings?
Usually not. Complaints are filed online and many authorities hold hearings online or in hybrid mode, with your lawyer appearing for you.
Should I ask for a refund or delay interest?
It depends on construction progress, the builder's finances and your plans. A refund ends your interest in the flat; delay interest keeps it.
What interest rate does RERA award?
The rate is set by the state rules, typically the State Bank of India's highest marginal cost of lending rate plus two per cent.
Is there a time limit for a RERA complaint?
The Act does not set a short fixed period, but delay can affect the relief. File as soon as the possession date is missed and the builder does not respond.
Can I go to the consumer commission instead?
Yes. The Supreme Court has held that RERA does not bar consumer complaints. You cannot pursue the same relief in both at the same time.
What happens if the builder appeals?
The builder must deposit the amount payable to you, or at least 30% of any penalty, before the appeal is heard.
Can the refund be sent abroad?
Yes. Refunds credited to your NRO account can be repatriated within the RBI limits with Forms 15CA and 15CB, and amounts paid from NRE funds can be returned to that account where the rules permit.