The possession date has passed. Now what? If you have been waiting on a flat, you do not have to wait quietly. RERA gives you a choice, and the Supreme Court has backed it.
The answer in 30 seconds: If a builder misses the possession date in the registered agreement, Section 18 lets you either withdraw and get your money back with interest, or stay and receive interest for every month of delay until possession. The refund right has been described by the Supreme Court as unconditional.
Part 3 of 5. Earlier: Part 1 (the law) and Part 2 (builder duties). This part is about what you do when those duties are broken.
Your two roads under Section 18
| Road A: Withdraw | Road B: Stay | |
|---|---|---|
| What you ask for | Refund of amounts paid, with interest, plus compensation if applicable | Interest for every month of delay |
| Until when | On withdrawal | Until possession is handed over |
| Interest rate in Telangana | SBI highest MCLR + 2% (Rule 15) | Same |
| Who decides | The Authority (refund and interest) | The Authority (interest) |
| Compensation | Adjudicating officer, under Sections 12, 14, 18 and 19 | Same |
The trigger is the date in your agreement for sale. A brochure, a verbal promise or a social media post does not count.
How much interest can you claim?
The Telangana Rules (Rule 15) fix the rate at the State Bank of India’s highest Marginal Cost of Lending Rate plus two per cent. The same rate applies if you pay late (Section 19(7)), which keeps the law balanced.
An illustration (not a real case; the MCLR below is assumed for teaching, not a current rate):
| Item | Value |
|---|---|
| Amount paid to the promoter | Rs 40,00,000 |
| Assumed SBI highest MCLR | 9.00% a year |
| Prescribed rate = MCLR + 2% | 11.00% a year |
| Delay | 12 months |
| Interest = 40,00,000 x 11% x 12 / 12 | Rs 4,40,000 |
Use the live SBI MCLR for the date your claim relies on. Authorities have approached that date question differently, so have a professional check current Telangana practice.
“But there was force majeure”
Builders often blame events beyond their control. Section 6 lets the Authority extend registration for force majeure, with a one-year cap, but the extension must be applied for and granted. In Newtech Promoters and Developers Pvt. Ltd. v. State of U.P. (Supreme Court, 11 November 2021), the Court read the Section 18 refund right as unconditional once the promoter fails to deliver on time.
Other rights you hold
- Information (Section 19): sanctioned plans, layout, stage-wise timelines and project status.
- Possession and conveyance: the right to possession and a registered conveyance (Sections 17 and 19).
- Defect repair (Section 14(3)): five years, free, within 30 days.
- Refund if ads mislead you (Section 12).
- Your own duties (Section 19): pay on time, pay interest on late instalments, and take possession within two months of the occupancy certificate.
How to file a RERA complaint in Telangana (Section 31)
- Collect the paper trail: agreement for sale, receipts, bank statements, demand letters, emails and WhatsApp messages.
- Send a written notice to the promoter stating the delay and your demand. The Act does not require it, but it is a sensible first step.
- Pick the forum: refund and interest go to the Authority; compensation goes to the adjudicating officer (Section 71). Under the Telangana Rules, a complaint to the Authority is in Form M and one to the adjudicating officer is in Form N, fee Rs 1,000 each.
- File online on the TG-RERA complaint portal.
- Attend hearings. The respondent replies within the period set in the notice. The adjudicating officer is meant to decide compensation within sixty days of receipt.
- Appeal if needed. Either side can go to the Appellate Tribunal within sixty days.
RERA or consumer forum?
In Imperia Structures Ltd. v. Anil Patni (2020), the Supreme Court held that RERA does not bar a consumer complaint, because remedies under the Act are in addition to other laws. For the same dispute you generally pick one route, so take advice before choosing.
Five mistakes that weaken a claim
- Relying on a brochure date instead of the registered agreement.
- Signing an addendum that resets the possession date.
- Not keeping proof of every payment.
- Paying your own instalments late.
- Waiting years without a written notice.
Waiting on a flat in Gachibowli, Kondapur or Kokapet? The same Telangana rules and forms apply across Hyderabad.
Next: Part 4 explains who enforces RERA and what penalties apply.
Delayed possession under RERA: FAQs
Can I get a refund if possession is late? Yes. Section 18 lets you withdraw and claim a refund with interest. In Newtech Promoters (2021) the Supreme Court described this as an unconditional right.
What if I stay? You receive interest for every month of delay until possession is handed over.
What interest rate applies in Telangana? SBI’s highest MCLR plus 2% under Rule 15 of the Telangana Rules, 2017.
Do I pay interest if I am late with instalments? Yes, at the same prescribed rate (Section 19(7)).
Where do I file? Refund and interest: the Authority (Form M). Compensation: the Adjudicating Officer (Form N). Fee Rs 1,000 each under the Telangana Rules.
Can I go to a consumer forum instead? Imperia Structures (2020) says RERA does not bar a consumer complaint. Take advice on choosing a forum.
Sources
- RE(R&D) Act, 2016 text (TG-RERA)
- Telangana RE(R&D) Rules, 2017
- Newtech Promoters v. State of U.P., summary by S.S. Rana & Co.
- Imperia Structures v. Anil Patni, LiveLaw report
General education, not legal advice.
Arpan Bohra & Co., Chartered Accountants · Website: arpanbohra.co.in · Email: ab@arpanbohra.co.in