Buying a home is one of the biggest financial decisions you will ever make. Timely possession is not just a convenience, it affects your EMIs, rent, tax planning, and mental peace. Unfortunately, project delays were extremely common before RERA. Developers would extend timelines endlessly, and homebuyers had very little bargaining power.
The Real Estate (Regulation and Development) Act, 2016, commonly known as RERA, was introduced to fix this imbalance. One of the core objectives of RERA is to protect you from unreasonable project delays.
This guide explains what legally happens when a real estate project is delayed under RERA, what rights you have as an allottee, and what practical steps you can take.
What Is Considered a Project Delay Under RERA?
Under RERA, every real estate project must be registered with the respective State RERA Authority. At the time of registration, the promoter is required to declare a specific date of completion and handover of possession.
A project is considered delayed when the promoter fails to hand over possession by the date promised in the Agreement for Sale, including any grace period that may be contractually allowed.
How Is the Possession Date Decided?
The possession date is not a vague estimate under RERA. It is a legally binding commitment. It is determined based on:
- The date declared by the promoter during RERA registration
- The possession clause mentioned in your Agreement for Sale
- Any mutually agreed extension mentioned in writing
If possession is not offered by this agreed date, the project is treated as delayed under RERA.
What Rights Do You Have If a Project Is Delayed?
RERA gives you clear and enforceable rights when a project is delayed. You are no longer at the mercy of vague assurances from the developer.
Right to Continue With the Project and Claim Compensation
If you still want the property and do not wish to withdraw, you have the right to stay invested and claim interest for every month of delay until possession is handed over.
This interest is payable at the rate prescribed by the State RERA Rules, which is usually linked to the State Bank of India’s highest Marginal Cost of Lending Rate plus a fixed percentage.
Right to Withdraw From the Project
If the delay is substantial or you no longer want to continue, you have the right to withdraw from the project altogether.
In such a case, the promoter must refund:
- The entire amount paid by you
- Applicable interest from the date of payment
- Any compensation awarded by the Authority
This refund must be made within 45 days, although timelines may slightly vary across states.
Can a Builder Extend the Project Timeline Under RERA?
Yes, but only in limited and legally defined circumstances.
When Is Extension Allowed?
RERA allows extension of project registration only in cases of force majeure. Force majeure events include:
- Natural disasters like floods, earthquakes, or cyclones
- War or war-like situations
- Government prohibitions that make construction legally impossible
Financial difficulties, labour shortages, or market slowdown are not valid grounds for extension under RERA.
How Is the Extension Granted?
The promoter must apply to the RERA Authority with proper justification and supporting documents. The Authority has the discretion to approve or reject the extension.
As an allottee, you have the right to check whether an extension has been formally granted. A builder cannot unilaterally extend timelines without RERA approval.
What Compensation Are You Entitled to for Project Delay?
Compensation under RERA is not symbolic. It is meant to financially offset the hardship you face due to delayed possession.
Interest for Delay
Interest is the most common relief granted. It is calculated from the promised possession date till the actual date of possession or refund.
The interest rate is notified by each State RERA Authority. Most states follow the SBI MCLR plus two percent formula.
Additional Compensation
In some cases, RERA Authorities have also awarded compensation for:
- Mental harassment
- Additional rent paid due to delay
- Increased home loan burden
However, such compensation is usually granted based on facts and evidence, not automatically.
What If the Builder Offers Possession After a Long Delay?
Many developers offer possession after a significant delay and argue that the buyer must accept it.
Under RERA, you are not forced to accept delayed possession without consequences.
You have two options:
- Accept possession and still claim interest for the delay period
- Reject possession and seek refund if the delay defeats the purpose of your purchase
RERA Authorities examine whether the delay is reasonable and whether accepting possession would cause undue hardship to you.
How Do You File a Complaint for Project Delay Under RERA?
RERA has made dispute resolution simpler and more accessible.
Where Do You File the Complaint?
You must file the complaint before the State RERA Authority where the project is registered. Each state has an online RERA portal.
What Can You Claim in the Complaint?
Your complaint can include:
- Interest for delayed possession
- Refund with interest
- Compensation for losses suffered
- Directions to complete the project
Documents You Will Need
Typically, you will need:
- Agreement for Sale
- Payment receipts
- Builder-buyer correspondence
- RERA project registration details
RERA proceedings are summary in nature and are designed to be faster than traditional civil suits.
What Is the Time Limit for Filing a RERA Complaint?
RERA does not specify a strict limitation period for filing complaints. However, courts and authorities generally follow the principle of reasonable delay.
It is advisable to file your complaint as soon as the cause of action arises, which is usually the possession due date.
Delaying your complaint unnecessarily can weaken your case.
Can You Approach Other Forums Along With RERA?
This is a common confusion among homebuyers.
You cannot pursue parallel remedies for the same relief at the same time. However, you do have options.
RERA vs Consumer Court
You may choose between RERA and consumer court on:
- Filing a complaint before RERA
- Filing a complaint before the Consumer Disputes Redressal Commission
Once you choose one forum, you should not pursue the same claim before another.
Civil Courts
Civil courts are generally avoided for possession delay matters due to long timelines. RERA provides a specialised and faster remedy.
What Happens If the Builder Does Not Comply With RERA Orders?
RERA orders are not advisory. They are legally enforceable.
If a promoter fails to comply with an order, the Authority can:
- Impose penalties
- Initiate recovery proceedings
- Attach bank accounts or property
- Recommend prosecution in serious cases
Non-compliance can also impact the promoter’s future project registrations.
How Does RERA Protect You From Future Delays?
RERA is not only reactive, it is preventive.
Some key safeguards include:
- Mandatory disclosure of project timelines
- Escrow account requirement for 70 percent of project funds
- Regular project updates on the RERA website
- Penal consequences for false declarations
These measures collectively reduce the risk of arbitrary delays.
Final Thoughts
Project delays can disrupt your finances and life plans, but RERA ensures that you are no longer powerless. Whether you choose to wait for possession with compensation or exit the project with a refund, the law is clearly on your side.
Understanding your rights under RERA allows you to take informed and timely action instead of relying on verbal assurances. If you are facing a delayed project, documenting everything and approaching the RERA Authority at the right time can make a significant difference.
