RERA complaint lawyers for homebuyers

Law

RERA 2016 and state RERA rules

Main relief

Refund or delay interest, Section 18

Forum

State RERA, adjudicating officer

Appeal

Appellate Tribunal within 60 days

Your rights as an allottee

RERA was enacted to correct the imbalance between builders and buyers. Its main protections are:

• Registration of projects (Section 3): projects on land over 500 square metres or with more than eight apartments must be registered with the state RERA before being advertised or sold.
• Advance limit (Section 13): the promoter cannot take more than 10% of the cost as advance without first executing a registered agreement for sale.
• Escrow of funds (Section 4): 70% of the amounts realised must be kept in a separate account and used only for that project's construction and land cost.
• No change in plans (Section 14): sanctioned plans cannot be altered without the consent of the allottees as the Act requires.
• Structural defects (Section 14(3)): the promoter must fix structural defects and poor workmanship reported within five years of possession, free of cost.
• Possession and title (Sections 11 and 17): the promoter must hand over possession as agreed and execute the conveyance deed.

Section 18: refund or interest for delay

Section 18 is the provision most homebuyers rely on. If the promoter fails to complete the project or give possession by the date in the agreement, or its business is discontinued because of suspension or revocation of registration, the allottee has a choice:

The interest rate is fixed by each state's rules. Most states, including Punjab, use the State Bank of India's highest marginal cost of lending rate plus 2%, so the rate changes over time. In Newtech Promoters and Developers v. State of UP (2021) the Supreme Court held that the right to a refund under Section 18 is unconditional, and that the Authority itself can order refund with interest, while compensation under Sections 12, 14, 18 and 19 is decided by the adjudicating officer under Section 71.

How a RERA complaint is filed and decided

1. Check the project's registration on the state RERA website, including the promised completion date and any extension granted.
2. Send a notice to the promoter asking for possession, refund or interest. It is not compulsory, but it sets the record.
3. File the complaint online or in the prescribed form under the state rules, with the fee, the agreement, the payment receipts and the reliefs claimed. Complaints for compensation are filed separately before the adjudicating officer in most states.
4. Hearings: the promoter files a reply, and the Authority hears both sides. Section 29 of the Act asks the Authority to decide complaints within 60 days, though many take longer.
5. Order and recovery: if the promoter does not pay, the Authority can issue a recovery certificate so that the amount is recovered as arrears of land revenue under Section 40, and can impose penalties for non-compliance.

In Punjab, complaints are filed before the Real Estate Regulatory Authority, Punjab, in Chandigarh, and appeals go to the Punjab Real Estate Appellate Tribunal.

Defences builders raise and how they are answered

Promoters usually resist RERA complaints on a few familiar grounds:

• Force majeure: the Act recognises war, flood, drought, fire, cyclone, earthquake and other natural calamities. Delays in approvals, shortage of labour or funds and disputes with contractors are ordinary business risks and are not accepted as force majeure in most orders. Several state authorities granted general extensions for the COVID-19 period; whether and how far that excuses delay depends on the state and the project.
• Buyer's default: if the allottee missed instalments, the builder may claim the delay was caused by the buyer or seek to forfeit part of the money. Payment records answer this.
• One-sided clauses: builder buyer agreements often cap delay compensation at a token rate per square foot. The Supreme Court has held such one-sided terms to be unfair, and RERA authorities apply the statutory interest rate instead.
• Offer of possession without occupancy certificate: an offer of possession is valid only when the project has the completion or occupancy certificate, so a premature offer does not stop interest running.

Appeals: Appellate Tribunal and High Court

An order of the Authority or the adjudicating officer can be appealed to the Real Estate Appellate Tribunal within 60 days under Section 44. A promoter filing an appeal must first deposit at least 30% of the penalty, or the full amount ordered to be paid to the allottee with interest and compensation, as required by the proviso to Section 43(5). This deposit rule protects buyers from appeals filed only to delay payment. A further appeal on a question of law lies to the High Court within 60 days under Section 58.

RERA, consumer commission or insolvency?

RERA is not the only remedy. In Imperia Structures v. Anil Patni (2020) the Supreme Court confirmed that homebuyers can also approach the consumer commission, because the remedies are concurrent. Civil courts, however, are barred by Section 79 from matters the Authority can decide. Where the builder is a company and has stalled many projects, homebuyers are financial creditors under the IBC, but a petition needs at least 100 allottees of the same project or 10% of them, whichever is less. We compare speed, cost and enforcement in each forum before filing.

Mistakes homebuyers should avoid

• Signing a possession letter or conveyance without reservation when delay interest is still due. Record your claim in writing.
• Accepting a unilateral revised date. An extension of registration granted to the builder does not by itself take away your right to interest under your agreement.
• Waiting for years. The Act sets no express limitation period for complaints, but long unexplained delay weakens the case and the builder may become insolvent.
• Losing payment proof. Keep every receipt, bank statement entry and demand letter, especially for cash or loan disbursements.

Complaint fees are fixed by each state's RERA rules and are modest. Our professional fee is quoted for the complaint and, separately, for any appeal or execution.

Documents you need

Gather the paper trail of your booking:

• Application form and allotment letter
• Agreement for sale or builder buyer agreement
• All payment receipts and bank statements showing payments
• Home loan sanction and disbursement letters, if any
• Demand letters and emails from the builder
• Photographs of the site, if construction is stalled
• Project registration number from the RERA website

How we handle it for you

1. Document review

   We read the agreement, possession date, payments and the project's RERA record.

2. Choose the relief

   We advise whether to seek refund or delay interest, and in which forum.

3. File the complaint

   Complaint drafted with an interest calculation and filed online with the state RERA.

4. Argue and follow up

   We attend hearings and oppose adjournments and unfair settlement offers.

5. Recover the money

   Recovery certificate, execution and opposition to any appeal by the builder.

Why clients choose ProudLegal

Frequently asked questions