Penalty on delay in possession from builder to buyer as per UP RERA

Please provide clarity if UP RERA is using the builder buyer agreement as a yardstick for determining delay penalty from builder to buyer (at the rate of approx rs. 5 sq/feet) or leveraging the RERA guidelines of approx 10 percent. I have heard that some adjucating officers in UP RERA as simply referencing the builder buyer agreement guildelines as they claim that the 10% penalty has not yet been ratified into implementation. pls confirm on this

Answers (1)

61 votes

RERA has prescribed the interest rate of 10% on the invested amount by the buyers facing problems due to delay delivery of homes. The interest rate prescribed by the authority is 2% points above SBI's Marginal cost of fund based lending rate (MCLR).

The Act also mandates buyers to pay the interest rate of 10% on delayed payment of their dues instead of 12% to 18% as contracted in the sales agreement.

Googling your legal issue online?

The internet is not a lawyer and neither are you.
Talk to a real lawyer about your legal issue.

Popular Property Lawyers

Advocate Rajesh Rai
Sector-19, Dwarka, Delhi
20 years Experience
Advocate Sunil Kumar Bakshi
Sector-16, Faridabad
33 years Experience
Advocate J. P. Rinwa
Swej Farm, Sodala, Jaipur
19 years Experience
Advocate Jaspreet Singh Rai
Greater Kailash 1, Delhi
17 years Experience

Disclaimer: The above query and its response is NOT a legal opinion in any way whatsoever as this is based on the information shared by the person posting the query at and has been responded by one of the Property Lawyers at to address the specific facts and details. You may post your specific query based on your facts and details to get a response from one of the Lawyers at or contact a Lawyer of your choice to address your query in detail.

Related Questions

" has handpicked some of the best Legal Experts in the country to help you get practical Legal Advice & help."

Related Articles