Possession Delayed? Section 18 of RERA Gives You Two Routes

When the section is engaged

Section 18 addresses the position where a promoter fails to complete or is unable to give possession of an apartment, plot or building in accordance with the terms of the agreement for sale, or as the case may be duly completed by the date specified therein.

The trigger is therefore the date in the agreement. That is why the possession-date clause matters so much, and why grace periods and broad force majeure language are worth negotiating before signing rather than arguing about later.

Route one: withdraw

Where the allottee wishes to withdraw from the project, the section addresses return of the amount received by the promoter in respect of that apartment, with interest and compensation.

This suits a buyer whose circumstances have changed, who has lost confidence in the project, or who can deploy the money better elsewhere. It also suits a buyer where the property value has not risen, since you are recovering money rather than acquiring an asset that has appreciated.

Route two: stay and claim interest

Where the allottee does not intend to withdraw, the section addresses payment of interest for every month of delay until handing over of possession.

This suits a buyer who still wants the flat, particularly where prices have risen since booking, since withdrawing would mean re-entering a more expensive market. It also suits a buyer far along a payment schedule for whom exiting is impractical.

How to decide

• Current market value of the unit against what you have paid and committed.
• How far the project has actually progressed, which is worth verifying physically rather than from an update email.
• Whether the promoter has the financial capacity to refund, which affects how quickly a favourable order translates into money.
• Your own cost of waiting, including rent and interest on a loan already being serviced.
• How many other allottees are in the same position, since collective action changes the dynamics.

The practical path

Before anything formal, put the delay in writing to the promoter, referring to the possession date in the agreement, and keep the reply. A documented record of the delay and of the promoter response is what any later step rests on.

Complaints under the Act are made to the State RERA authority, and procedure varies by state. This is the point at which an advocate who handles RERA matters in your state adds real value, because the strategy depends on the project status, the promoter position, and how the local authority operates.