What can you claim when a builder delays your home?
Last checked 3 Nov 2026 · by BachatLab
If the builder misses the possession date in your agreement for sale, RERA section 18 gives you a choice: leave and get back everything you paid with interest, or stay and get interest for every month of delay until you get the keys. Your state’s RERA rules set the rate; many set it at SBI’s highest MCLR plus 2%.
| Your choice | What you get |
|---|---|
| Leave the project | What you get Everything you paid, with interest from the day you paid it. You can also claim compensation. |
| Stay | What you get Interest on what you paid, for every month of delay, until possession. |
- Interest a month (₹40 lakh × 10.95% ÷ 12)
- ₹36,500
- For 18 months
- ₹6,57,000
10.95% is SBI’s highest MCLR (8.95%, its 3-year rate, from 15 Oct 2026) plus 2%, worked out as simple interest. An example, not a quote: use your state’s rule.
| State (its RERA rules) | Rate the builder pays · refund due within |
|---|---|
| Tamil Nadu (rules 18, 19) | Rate the builder pays · refund due within SBI highest MCLR + 2% · 90 days |
| Haryana (rules 15, 16) | Rate the builder pays · refund due within SBI highest MCLR + 2% · 90 days |
| Uttar Pradesh (rule 16) | Rate the builder pays · refund due within See UP RERA’s orders · 45 days |
| Other states | Rate the builder pays · refund due within Check your state RERA’s rules |
The Supreme Court held in Newtech Promoters (2021) that your right to a refund when possession is late is unconditional.
Before you file
- Find the possession date in your registered agreement for sale.
- Write to the builder asking for interest under section 18. Keep a copy.
- If they do not pay, complain on your state RERA’s website.
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See the free checksGeneral information, not advice. Your lender decides your rate, fees and terms. Rates and rules were checked on the date above.