Compensation for delay in handover

679 votes

Key Rights Under RERA Section 18 According to Section 18 of the RERA Act, if a developer fails to hand over possession by the date specified in the sale agreement, you have two primary options: Option 1: Continue with the Project You can stay in the project and claim monthly interest for every month of the delay until actual possession is handed over. The interest rate is typically the State Bank of India's (SBI) Marginal Cost of Lending Rate (MCLR) plus 2%

Advocate Dhruv. K LawRato

696 votes

Hi. I hope you are doing well. If the builder has failed to hand over possession by the committed date of 31st December 2025 as per the RERA registration and agreement for sale, you are legally entitled to seek compensation for delay under the Real Estate (Regulation and Development) Act, 2016; mere application for Occupancy Certificate (OC) or seeking extension does not automatically absolve the builder of liability unless the delay is due to force majeure recognized by RERA, and until a valid extension is granted, the original possession date remains binding; you and other allottees can file a complaint before the State RERA Authority seeking interest for delayed possession (generally at the prescribed SBI MCLR rate plus percentage as notified by the State) or other appropriate reliefs, and if you no longer wish to continue, you may also seek refund with interest; it is advisable to review the agreement for sale and RERA project details before proceeding.

Advocate E. A. Ashwin Datha LawRato