RERA Refunds With Interest: Your Right Under Section 18

Here is a general overview of rera refunds with interest under Indian law.

Why a homebuyer's right to a refund with interest for a delayed project is unconditional.

The legal position

In Newtech Promoters & Developers v State of UP (11 Nov 2021), the Supreme Court held that a homebuyer's right to a refund with interest under RERA s.18, for a developer's failure to complete and hand over possession on time, is unconditional.

A complaint seeking this relief is filed under RERA s.31 before the relevant state's Real Estate Regulatory Authority.

Typically, a homebuyer generally has a choice between seeking a refund with interest for the delay, or continuing with the project and claiming interest for the period of delay until possession is handed over, rather than being forced to accept either option.

As a general rule, rERA complaints are generally intended to proceed faster than ordinary civil litigation, with the Authority empowered to pass interim orders and the final order being executable in the manner of a civil court decree.

Documents generally involved

• The builder-buyer agreement
• Payment receipts showing the consideration paid
• Any communication about the delay or possession date
• The project's RERA registration number, if available

Common pitfalls

Some common mistakes are worth flagging.

• Assuming you must show the developer was at fault beyond simply missing the committed timeline — the Supreme Court has held the s.18 refund right is unconditional on delay.
• Filing in the wrong forum — RERA complaints go to the state Real Estate Regulatory Authority under s.31, not directly to a civil court or consumer commission, though parallel remedies can exist.
• Not checking whether the project itself is registered under RERA, which can affect how the complaint proceeds.

For related reading, see Can a Homebuyer Use the Insolvency Process Against a Builder? and RERA and Homebuyer Rights: An Overview.

If this touches a situation you are dealing with, you are welcome to discuss it in a consultation.

The content above explains how the law generally works; it is not legal advice and should not be treated as a substitute for advice on your particular facts.