Waiting for a new home can be stressful, especially when the promised possession date keeps slipping. Many buyers find themselves still paying rent and home‑loan EMIs while the builder only sends vague updates that the project is "nearing completion".
Under the Real Estate (Regulation and Development) Act, 2016, a promoter who fails to hand over possession on time must compensate the allottee. The exact remedy depends on whether the buyer wants to stay in the project or walk away.
Before confronting the builder, review the agreement for sale. The stated possession date is crucial because it sets the schedule. Also look for clauses on extensions, force majeure and compensation for delay, and avoid relying solely on verbal promises.
If the buyer chooses to stay, Section 18 of RERA obligates the promoter to pay interest for every month of delay at the prescribed rate. The rate and procedure vary by state or union territory, so check the local rules.
If the delay is too long, the buyer can cancel the purchase. Section 18 also allows the return of the paid amount, plus applicable interest and compensation. This is a major decision, so understand the project’s legal status and the recovery process.
Stopping payments because of delay can create new problems. RERA still requires allottees to pay the amounts specified in the agreement and other charges. Seek legal advice before withholding any payment.
Document every complaint. Ask the builder for a written explanation of the delay, new completion dates and any compensation offered. Keep copies of all correspondence, payments and evidence.
If the issue remains unresolved, the buyer can approach the State RERA authority. A clear paper trail will help the dispute resolution process.
Construction projects may face genuine setbacks, but buyers should distinguish between a temporary setback and an indefinite delay. RERA gives access to approved plans, stage‑wise completion schedules and other project details.
A delayed possession is financially stressful, but buyers need not wait indefinitely. First confirm the contractual possession date, understand rights under RERA and decide whether to keep the home or get a refund. Keep everything in writing and seek professional legal advice before making a major decision.