Last reviewed: 16 October 2026 (research update). Advocate review: pending.
Can a Purchaser Claim a Refund, Interest, Damages, or Specific Performance?
Sometimes, but these are different remedies and are not interchangeable. If a builder in a RERA-registered Maharashtra project misses the agreed possession date, the buyer can ask the MahaRERA Authority for a refund with interest, or can stay in the project and claim interest for each month of delay (Section 18, Real Estate (Regulation and Development) Act, 2016). Compensation is decided separately by the Adjudicating Officer. Specific performance, a court order that a seller must complete a sale, comes from the Specific Relief Act, 1963, and the proper forum depends on the facts. Documents, project status, limitation and the forum chosen can change the result.
Who should read this
- A flat or plot buyer whose builder missed the possession date in the agreement for sale.
- A buyer deciding whether to withdraw and take a refund, or stay and claim delay interest.
- A buyer under an agreement to sell, including a resale, where the seller will not execute the sale deed.
The remedies are different
| Remedy | What it means | Main route |
|---|---|---|
| Refund with interest | Return of the money paid, with interest at the prescribed rate, when the buyer withdraws | MahaRERA Authority (registered project); consumer commission |
| Delay interest | Interest for each month of delay when the buyer stays in the project | MahaRERA Authority; consumer commission |
| Compensation | Money for proven loss, assessed using the factors in Section 72 | Adjudicating Officer; consumer commission |
| Possession | Handing over the unit | RERA authorities for a registered project; otherwise civil proceedings |
| Specific performance | Court order that the seller must perform the contract, for example by executing a sale deed | Civil court, subject to Section 79 of RERA in some cases |
Applicable law
Section 18, RERA 2016. If the promoter fails to complete or give possession as per the agreement for sale by the date specified, or cannot do so because of discontinued business “or for any other reason”, the promoter is liable on demand, where the allottee (the buyer) wishes to withdraw and “without prejudice to any other remedy available”, to return the amount received with interest at the prescribed rate “including compensation in the manner as provided under this Act”. If the allottee does not intend to withdraw, the promoter must pay interest for every month of delay until possession (proviso to Section 18(1)). Section 18(2) deals with loss from defective title, and that claim is not barred by limitation. Section 18(3) covers other failures to meet obligations.
Sections 71 and 72. An Adjudicating Officer, who is or has been a District Judge, adjudges compensation under Sections 12, 14, 18 and 19. Section 72 lists factors for assessing the quantum.
Section 79. No civil court may entertain a suit or proceeding on a matter that the Authority, Adjudicating Officer or Appellate Tribunal is empowered to determine. Section 88 says RERA is in addition to, and not in derogation of, other laws.
Rule 18, Maharashtra RERA Rules, 2017. The rate of interest payable by a promoter to an allottee is the State Bank of India’s highest Marginal Cost of Lending Rate plus two per cent. If SBI’s MCLR is not in use, it is replaced by the benchmark SBI fixes for lending to the general public.
Specific Relief Act, 1963. Since the 2018 amendment (in force from 1 October 2018), Section 10 says specific performance “shall be enforced” subject to Sections 11(2), 14 and 16. Section 16(c) bars relief for a person who fails to prove that they have performed, or have always been ready and willing to perform, the essential terms they must perform. Section 20 now deals with substituted performance and needs a written notice of at least 30 days.
Limitation Act, 1963, Article 54. A suit for specific performance must be filed within three years from the date fixed for performance or, if no date is fixed, from when the plaintiff has notice that performance is refused.
Consumer Protection Act, 2019, Section 69. A consumer complaint must be filed within two years from the date the cause of action arose. A late complaint may be entertained if there is sufficient cause, and the Commission must record its reasons.
Refund, delay interest and compensation: the difference
In Newtech (paragraph 86), the Supreme Court said that although the Act uses distinct words (refund, interest, penalty, compensation), refund of the amount, interest on the refund, and interest for delayed possession are decided by the regulatory Authority. Compensation, with interest on it, is decided exclusively by the Adjudicating Officer under Sections 71 and 72. A buyer who withdraws gets the money back with interest. A buyer who stays gets interest for the delay, not a refund.
The Supreme Court also said (paragraph 25) that the right to a refund on demand does not depend on contingencies such as unforeseen events or stay orders that are not attributable to the allottee. It added (paragraph 80) that if the allottee defaults on instalments, the promoter has a right to cancel under Section 11(5), and the allottee may question the cancellation before the Authority. Buyer default is therefore a live issue.
Which forum can grant which relief?
| Relief | Forum | Caution |
|---|---|---|
| Refund with interest | RERA Authority (Newtech, para 86); consumer commission (Imperia) | Whether an Adjudicating Officer can direct a refund through delegation under Section 81 has been before the Bombay High Court. In Marvel Landmarks (7 April 2026) a single judge declined to disturb such an order because of delay and finality, and another Division Bench petition was noted as pending. The position is not settled, so confirm it before filing. |
| Delay interest | RERA Authority (Newtech, para 86); consumer commission | The start date depends on the agreement’s possession date and any moratorium or grace orders. |
| Compensation | Adjudicating Officer (Newtech, para 86); consumer commission | Needs evidence of loss. |
| Possession | RERA remedies include seeking possession under Section 19(3), as the Bombay High Court noted in Yadavalli (paragraph 19) | Not a refund; choose deliberately. |
| Sale deed or conveyance by the promoter | Depends on the facts | Take advice on the correct forum. |
| Specific performance of an agreement to sell | Civil court. Whether Section 79 bars a suit for a RERA-registered project depends on the substance of the reliefs | The Bombay High Court left open whether every such suit is barred (Yadavalli, paragraph 11). |
| Consumer relief | Consumer commission, if the buyer is a “consumer” | Imperia: Section 79 does not bar consumer proceedings. |
Registration of the project does not settle every question. The relief claimed, the status of the project (the Supreme Court held that RERA covers ongoing projects where a completion certificate had not been issued when RERA came into force, and the MahaRERA portal accepts complaints only against registered projects), whether the buyer is a “consumer”, and whether the dispute involves title or declarations all matter. Imperia also records that an allottee who is not a “consumer” and could only have used ordinary civil remedies is barred by Section 79 from the civil court for matters RERA can determine.
Parallel proceedings
Do not run the same claim in two forums without advice. Form A (complaint to the Authority) contains a declaration that the matter is not pending before any other court, authority or tribunal. Overlapping claims can raise problems of jurisdiction, inconsistent findings, double recovery and limitation. We found no authority saying that a RERA complaint automatically extends, suspends or preserves the Article 54 period for a civil suit, so treat the civil period as running.
Limitation: time limits to watch
Specific performance (Article 54). Three years from the date fixed for performance or, if no date is fixed, from when the plaintiff has notice that performance is refused (A. Valliammai, 2023 INSC 823). “Date fixed” has been held to mean a definite calendar date, and notice of refusal must be shown on evidence. Limitation is separate from the merits: a suit within time can still fail if readiness and willingness is not proved.
RERA complaint before the Authority or the Adjudicating Officer. The provisions we checked (Sections 18, 31 and 71) do not state a limitation period for such complaints, apart from Section 18(2) for defective-title compensation. A Chhattisgarh High Court decision, reported by LiveLaw, held that Article 137 of the Limitation Act does not apply to Section 31 complaints, and a Haryana RERA order took a similar view. These are persuasive only, and we found no binding Supreme Court or Bombay High Court ruling on the point. Do not delay, and ask an advocate how limitation applies to your complaint.
Appeals and enforcement. An appeal to the Appellate Tribunal lies within 60 days of receiving the order, with condonation for sufficient cause (Section 44), and a further appeal to the High Court lies within 60 days on Section 100 CPC grounds (Section 58). The MahaRERA portal says review is available within 45 days under its General Regulations and that an application for non-compliance can be made after 60 days from the order. Amounts determined as refundable are recoverable under Section 40(1) (Newtech, paragraph 141). Check the current time limit for execution with an advocate.
Consumer complaints. Section 69 of the 2019 Act: two years from when the cause of action arose, with condonation on sufficient cause. Whether a continuing breach changes the date the cause of action arose depends on the facts.
Conditions, exceptions and risks
- Section 18 assumes the promoter failed to give possession by the agreed date. Read the possession clause and any extension.
- Make the demand in writing.
- A refund ends the claim to the unit; staying gives delay interest but not the refund.
- Compensation needs proof of loss.
- Specific performance is not automatic. Section 16(c) requires proof of continuous readiness and willingness; the Bombay High Court has refused relief where the buyer could not prove financial capacity (Girish Dhruva).
- The 2018 amendment’s application to older agreements is unsettled (see below).
- The promoter may raise buyer default and the right to cancel under Section 11(5).
The 2018 Specific Relief amendment and older agreements
The amendment came into force on 1 October 2018 and made specific performance a matter the court “shall enforce” subject to stated limits, instead of a purely discretionary remedy. In Katta Sujatha Reddy (25 August 2022), the Supreme Court held the amendment prospective and not applicable to transactions before that date. On 8 November 2024, in review (2024 INSC 861), the Supreme Court recalled that judgment and restored the High Court’s decree. It decided the specific performance issue under the pre-amendment discretionary law “even assuming” discretion continued, without expressly settling whether the amendment is prospective. Commentary says the question remains open. If your agreement was signed before 1 October 2018, ask an advocate how this affects you.
Readiness and willingness
Section 16(c) bars relief for a person who fails to prove that they have performed or have always been ready and willing to perform the essential terms. Before 2018 the section said “aver and prove”; the amended section says “prove”. The Supreme Court, most recently in 2025 INSC 450, has said continuous readiness and willingness from the date of the agreement to the decree is a condition precedent. Readiness means capacity, including financial position, and willingness is judged from conduct. In practice courts look for documents: bank statements, loan sanction and disbursement steps, notices calling on the seller to perform, and draft documents. A bare oral assertion has been held insufficient (Girish Dhruva, paragraphs 52 to 60).
How interest under Rule 18 is calculated
Rule 18 fixes the rate as the State Bank of India’s highest MCLR plus 2% per annum. The sources we checked did not settle which date’s MCLR is used for a given claim, and MahaRERA orders we reviewed apply the rule for the period of delay without stating a fixed reference date. The exact rate and method of computation for your claim should be confirmed with an advocate.
For information only: SBI’s website listed a highest tenor MCLR of 8.95% (three-year) with effect from 15 October 2026. That is a dated data point, not the rate for any claim.
Illustrative formula (simple annual interest, hypothetical figures): Interest = Amount paid × (Rate ÷ 100) × (Months ÷ 12). If A paid ₹50,00,000 and a hypothetical rate of 10% per annum applies for 6 months, interest is 50,00,000 × 0.10 × 6/12 = ₹2,50,000. The 10% is invented for the arithmetic and is not the legal rate. How interest is computed is for the Authority to decide.
Step-by-step procedure
- Collect the agreement, receipts and correspondence. Check the project’s registration and the promised possession date on the MahaRERA portal.
- Decide, with advice, whether to withdraw or stay.
- Send a written demand or legal notice.
- Choose the forum (see the table above). MahaRERA complaints are filed online as Form A (complaint to the Authority); compensation applications to the Adjudicating Officer use Form B. The portal also offers a Conciliation Forum before the complaint login.
- Pay the prescribed fee online. Check the current amount on the MahaRERA portal before filing, because fees can change.
- Attend hearings and monitor the online dashboard for notices.
- After an order: comply, appeal within the appeal period, or seek enforcement if the order is not complied with.
Documents and evidence
- Agreement for sale, allotment letter, brochures and advertisements
- Payment receipts, bank statements and demand letters
- Possession clause and extension correspondence
- Project registration details
- Notices, emails and messages with the promoter
- Evidence of loss, such as rent or loan interest paid
- For specific performance: proof of financial capacity and steps taken to complete
Relevant judgments
| Case | Court, date and number | Point |
|---|---|---|
| M/s Newtech Promoters and Developers Pvt. Ltd. v. State of U.P., (2021) 18 SCC 1 | Supreme Court, 11 November 2021, Civil Appeal Nos. 6745-6749 of 2021 | Refund and delay interest before the Authority; compensation before the Adjudicating Officer (para 86); refund right not dependent on contingencies (para 25); pre-deposit upheld |
| M/s Imperia Structures Ltd. v. Anil Patni, (2020) 10 SCC 783 | Supreme Court, 2 November 2020, Civil Appeal Nos. 3581-3590 of 2020 | Section 79 does not bar consumer commissions; Section 88; Section 18 is without prejudice to other remedies |
| Yadavalli Venkata Gopalam v. M/s Sai Siddhant Developers, 2023:BHC-AS:33740 | Bombay High Court, 4 November 2023, Appeal from Order No. 662 of 2023 | Suit that did not actually seek specific performance was barred by Section 79; whether every specific performance suit is barred was left open |
| Karan Chopra v. Skystar Buildcon Pvt. Ltd., 2024:BHC-AS:6794 | Bombay High Court, 5 February 2024, Second Appeal No. 63 of 2024 | Under Newtech, interest under Section 18(1) lies with the Authority and compensation with the Adjudicating Officer |
| Marvel Landmarks Pvt. Ltd. v. State of Maharashtra, 2026:BHC-AS:16466 | Bombay High Court, 7 April 2026, Writ Petition No. 12121 of 2024 | Adjudicating Officer’s refund order not disturbed on facts (delay and finality); the wider question is not settled |
| Girish Vinodchandra Dhruva v. Smt. Neena Paresh Shah, 2023:BHC-AS:15811 | Bombay High Court, 12 June 2023, First Appeal No. 1252 of 2013 | Readiness and willingness requires proof of financial capacity; decree refused (pre-2018 law applied) |
| A. Valliammai v. K.P. Murali, 2023 INSC 823 | Supreme Court, 12 September 2023 | Article 54 text and its two limbs |
| Katta Sujatha Reddy v. Siddamsetty Infra Projects Pvt. Ltd. (25 August 2022) and review, 2024 INSC 861 (8 November 2024) | Supreme Court | Amendment prospective (2022); judgment recalled, issue not expressly decided (2024) |
Hypothetical example
A agreed to buy a flat from B, a builder in a RERA-registered project, with possession due by 31 December 2022. B has not delivered. If A wants to leave, A may demand a refund with interest under Section 18 and file a complaint with the Authority. If A stays, A may claim interest for each month of delay. A’s separate claim for compensation, for example rent paid, goes to the Adjudicating Officer. In a different situation, C agreed to sell a resale flat to A and refuses to execute the sale deed after A paid the price. A’s main remedy is likely a civil suit for specific performance, filed within the Article 54 period, where A must prove readiness and willingness. These are illustrations only.
Common mistakes
- Waiting without a written demand.
- Mixing up refund, delay interest, compensation and specific performance in one pleading without advice.
- Not checking RERA registration and the project’s status.
- Running the same claim in several forums.
- Assuming a RERA complaint stops the civil limitation period.
- Missing the three-year Article 54 period or the two-year consumer period.
- Claiming compensation without proof of loss.
- Seeking specific performance without documents showing financial capacity.
- Accepting a new date or settlement without advice.
Practical next steps
Read the possession clause, check the project on the MahaRERA portal, keep all payment proofs and consult an advocate before sending a notice or filing. Midhati Legal Aid Foundation offers a free initial consultation; see our Contact page and Services. No outcome is promised.
Primary sources: Newtech (Supreme Court), Imperia Structures (Supreme Court), 2024 review judgment (Supreme Court), MahaRERA complaint filing page.
Frequently asked questions
Can I get a refund if the builder delays possession?
In a RERA-registered project, Section 18 gives a right to demand a refund with interest, and Newtech calls it an unqualified right that does not depend on contingencies not attributable to the buyer. Buyer default and project status can still matter.
Can I get a refund and also stay in the project?
No. Section 18 offers a choice: withdraw and get the refund with interest, or stay and receive delay interest.
Is compensation the same as interest?
No. In Newtech the Supreme Court separated them: interest on refund or delay is for the Authority, while compensation is exclusively for the Adjudicating Officer.
What interest rate applies in Maharashtra?
Rule 18 says SBI’s highest MCLR plus 2%. The exact figure for your claim depends on the facts, so confirm it with an advocate. See the formula above.
Can I sue in a civil court for specific performance for a flat in a RERA project?
It depends on what you actually claim. The Bombay High Court has held a suit barred by Section 79 where the reliefs were in substance enforcement of the promoter’s obligations, and left open whether every specific performance suit is barred.
Is there a time limit?
For a specific performance suit, three years under Article 54. For consumer complaints, two years under Section 69 with condonation for sufficient cause. For RERA complaints, we found no binding authority on a limitation period; get advice and do not delay.
Can I go to a consumer commission instead of MahaRERA?
Imperia Structures says RERA does not bar a buyer who is a consumer from using the consumer route. Do not seek the same relief in two places.
What is the filing fee?
A fee is payable online. Check the current amount on the MahaRERA portal when filing.
Do I need a lawyer?
Not necessarily for a RERA complaint (the portal allows an advocate, chartered accountant or other representative, or personal appearance), but advice helps with forum, evidence and limitation.
General information, not legal advice
This article gives general information for the public. It does not create an advocate-client relationship. Facts, documents, jurisdiction and current law may change the result. Please consult a qualified advocate about your case.
Last reviewed: 16 October 2026 (research update). Advocate review: pending. Law and portal details change, so check current sources.