When a promoter fails to hand over possession by the date agreed, the allottee has a statutory choice under Section 18 of the Real Estate (Regulation and Development) Act 2016: either claim interest for every month of delay until possession is handed over, or withdraw from the project and claim a refund of the amount paid, again with interest. The claim is made before the state real estate authority — in West Bengal, WBHIRA — or, for compensation, before its adjudicating officer.
Who this applies to
- A homebuyer whose possession date in the agreement has passed without delivery.
- An allottee who wants to stay in the project but be paid for the delay.
- An allottee who has lost confidence in the project and wants out with a refund.
- A buyer of a plot in a registered project where development has stalled.
The promoter's obligation
Under the RERA 2016 the promoter must complete the project and hand over possession in accordance with the agreement for sale and the declarations made at registration. The agreement itself fixes the date and the description of what is to be handed over. That is why the first step is always to read the agreement carefully: the obligation is measured against the date and the specifications recorded there, not against a verbal promise or an advertisement.
Section 18: the allottee's choice
- Option one — continue and claim interest: if the allottee does not wish to withdraw, the promoter is liable to pay interest for every month of delay, at the rate prescribed, until possession is actually handed over.
- Option two — withdraw and claim refund: if the allottee wants to withdraw, the promoter must return the amount received with interest, and must do so within the time laid down after the claim.
The rate of interest and the method of calculation are prescribed by the rules and the authority, and they apply to both the promoter and the allottee on a reciprocal basis. The principle is that interest runs for the period of default, computed month by month on the amount paid, without the allottee having to prove any special loss. Because the prescribed rate is fixed in the rules rather than in the Act, the exact figure is read off the applicable rule at the time of the claim — the RERA framework itself states the right, and the rule states the rate.
Filing the complaint
- Before the state authority: a complaint is filed against the promoter under Section 31 of the RERA 2016 for a direction to hand over possession, to pay interest for the delay, or to refund the amount. In West Bengal this is filed before WBHIRA, the West Bengal Real Estate Regulatory Authority.
- Before the adjudicating officer: where the claim is for compensation or interest and does not require the authority's other directions, the complaint is made to the adjudicating officer appointed under Section 71 of the Act, who decides the amount payable.
- What the complaint asks for: a direction for possession, or refund with interest, and compensation where the delay has caused loss — for example rent paid while waiting, or interest paid to a lender.
The RERA framework also allows appeals against an order to the appellate tribunal, and this part of the practice is handled by our RERA and real estate service.
Documents to attach
- The registered agreement for sale, and any later written variation of the possession date.
- Receipts and bank statements showing every payment made to the promoter.
- Correspondence about possession — demand letters, emails, reminders and the promoter's replies.
- The RERA registration number of the project and the promoter's declaration, taken from the authority's records.
- Proof of the delay, such as the latest status of the project from the authority's website.
- Proof of any consequential loss — rent paid, or interest on the loan taken for the purchase.
Where the purchase documents themselves are being prepared or corrected, the accompanying formats follow our property registration formats; registration and stamping questions are handled through our property registration service.
Timelines and limitation
The claim should be brought as soon as the agreed date passes, because the delay keeps growing with every month and an early complaint preserves the allottee's position. Where a complaint is filed before the authority or the adjudicating officer, the authority applies the limitation provided in the RERA framework and the general law, and a stale claim invites an objection that the allottee slept on his rights. The allottee's separate right before a consumer commission is governed by the Consumer Protection Act 2019, under which a complaint must be filed within the period of limitation laid down in Section 69 of that Act, running from the date the default or deficiency arose.
Alternatives before a consumer commission
A failure to hand over possession on time is a deficiency in service, and an allottee may also approach the District or State Consumer Commission under the Consumer Protection Act 2019, filing online through the e-Daakhil portal, to seek possession, refund, interest and compensation. The two forums are distinct: RERA is a specialised regulator with its own powers against the promoter, while the consumer commission deals with the allottee as a consumer. An allottee should be advised on which forum to choose, and should not press the same relief in both at the same time, as this is a common ground of objection by the promoter.
Common questions
Can I claim interest and also stay in the project?
Yes. Section 18 of the RERA 2016 expressly allows an allottee who does not want to withdraw to continue in the project and claim interest for every month of delay until possession is handed over. The choice between interest and refund is the allottee's.
How is the interest calculated?
Interest runs for the period of default, month by month, on the amount paid, at the rate prescribed by the rules, applying equally to promoter and allottee. The allottee does not have to prove a special loss to be entitled to it.
Where do I file in West Bengal?
Complaints against a promoter are filed before WBHIRA, the West Bengal Real Estate Regulatory Authority, for directions on possession, refund or interest, and before the adjudicating officer appointed under the Act where the claim is for compensation.
Do I lose my rights if I accept possession late?
Accepting possession does not by itself give up the claim for the period of delay that has already occurred, but the allottee should record the protest in writing and keep the claim alive. Taking possession without any reservation can be used by the promoter to argue that the delay was accepted.
FileX Advocates & Legal Consultants, Kolkata, appears in these matters before the Calcutta High Court, the City Civil and Sessions courts, and the property and tribunal forums. For a free first consultation, call +91 7439811422 or WhatsApp us, or write through our contact page.