Quick answer
- Under Section 18 of the Real Estate (Regulation and Development) Act, 2016, if the builder fails to hand over possession on the agreed date, you can withdraw and claim a full refund with interest, or stay and claim interest for every month of delay.
- In Newtech Promoters v. State of U.P. (2021), the Supreme Court called the refund right unqualified. It does not depend on reasons for delay that are within the builder’s control.
- Complaints in Ghaziabad and Noida are filed online with UP RERA under Section 31.
- Unpaid orders can be recovered as arrears of land revenue through a recovery certificate.
Thousands of homebuyers in Ghaziabad, Noida and Greater Noida have waited years for their flats. RERA gives you a faster route than a civil suit, and interest keeps running while you wait.
What rights do you have when possession is delayed?
Section 18 RERA gives you a choice:
- Withdraw from the project: a refund of the entire amount paid, with interest at the prescribed rate, plus compensation
- Continue in the project: interest for every month of delay until possession is handed over
Under the UP rules, the prescribed interest rate is linked to the State Bank of India’s highest marginal cost of lending rate (MCLR) plus 2%.
What did the Supreme Court say in Newtech Promoters?
In M/s Newtech Promoters and Developers Pvt. Ltd. v. State of U.P., 2021 SCC OnLine SC 1044, the Supreme Court held that the allottee’s right to a refund under Section 18(1) is unconditional and absolute if the builder fails to deliver on time. It does not depend on unforeseen events or stay orders that are not attributable to the allottee. The Court also upheld the power of the RERA Authority to order refunds.
How do you file a complaint with UP RERA?
- Collect your documents: allotment letter, builder-buyer agreement, payment receipts, bank loan statements and correspondence
- Check the project’s registration number on the UP RERA portal
- File the complaint online under Section 31, choosing refund or delay interest
- Pay the fee and attend hearings. Conciliation is often attempted first
Can you go to consumer court instead?
Yes. Remedies under the Consumer Protection Act are available in addition to RERA (Imperia Structures Ltd. v. Anil Patni, (2020) 10 SCC 783). But you cannot pursue the same relief in both forums at the same time. The choice depends on the amount involved, the builder’s financial position and the speed of each forum. See our consumer court lawyer page.
What if the builder does not pay after the order?
- Apply to UP RERA for a recovery certificate. The amount is then recovered as arrears of land revenue through the District Collector
- Non-compliance with RERA orders can attract penalties under Sections 63 and 64
- If the builder is insolvent, homebuyers can take part in the insolvency process as financial creditors
Is there a time limit?
RERA does not prescribe a strict limitation period, but delay weakens your case and your chances of recovery. File as soon as the promised possession date has passed.
Need help?
We represent homebuyers before UP RERA, the Appellate Tribunal and consumer forums. See RERA lawyer in Ghaziabad.
Sources
- Real Estate (Regulation and Development) Act, 2016 — Sections 18, 31, 40, 63 and 64
- M/s Newtech Promoters and Developers Pvt. Ltd. v. State of U.P., 2021 SCC OnLine SC 1044
- Imperia Structures Ltd. v. Anil Patni, (2020) 10 SCC 783
- UP RERA official portal
This article is general legal information, not legal advice for your specific case. Law and procedure change; please consult an advocate before acting.
