Is the builder dragging their feet on handing over possession? Learn about the RERA rules that will help you get a full refund..

Buying a dream home using one's hard-earned savings is a universal aspiration. However, the greatest disappointment arises when the builder fails to hand over possession on schedule. Living in a rented home while simultaneously paying home loan EMIs can place an immense financial burden on the average person.

If you too have fallen victim to such a delay by a builder, there is no need to panic. The stringent regulations of the Real Estate Regulatory Authority (RERA) fully safeguard your rights.

Section 18 of RERA
Section 18 of the RERA (Real Estate Regulation and Development) Act empowers homebuyers significantly. If the builder fails to hand over the flat or house by the date specified in the 'Sale Agreement,' they can be held accountable under this provision.

In such a scenario, RERA offers you two primary options:

1. If you no longer wish to purchase the home, you can decide to withdraw from the project. Under the rules, the builder is required to refund your entire deposited amount along with applicable interest (usually 2% above the SBI MCLR).

2. If you still wish to acquire the home in the same project and are willing to wait for possession, the builder must pay you compensation (interest) for every month of delay until the keys are handed over to you.

What is the correct procedure to recover the money?
If the builder is uncooperative, you can directly approach your state's RERA authority. File a complaint online by visiting your state's RERA website; this usually involves a nominal fee of ₹1,000. Along with the complaint, attach your 'Allotment Letter,' the 'Builder-Buyer Agreement' (BBA), and all receipts of payments made to the builder. Although you can present your case before the RERA court yourself, you may also seek the assistance of a real estate lawyer to ensure a smooth process. Following the hearing, if your complaint is found to be valid, RERA may issue an order directing the builder to refund the money within 45 to 60 days.

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