How do I claim my money back from a delayed project?

Yes. Once your builder misses the possession date in your Agreement for Sale, you can demand your entire investment back, plus interest for the whole period your money was held, plus any additional compensation for losses you can show — the Supreme Court has confirmed this is not a discretionary favour, it's a right. File the refund claim with your state RERA authority (not the adjudicating officer, which handles compensation-only claims) Interest is calculated at the state's prescribed rate (commonly SBI's highest MCLR plus 2%) from the date you paid You can pursue this alongside, or instead of, a consumer forum complaint (Imperia Structures, 2020) RERA orders are enforced like arrears of land revenue if the builder doesn't pay (s.40)

CAPGAIN › Answers › RERA & homebuyer rights › Can I Withdraw and Get a Refund With Interest?

Can I Withdraw and Get a Refund With Interest?

Short answer: Yes. Once your builder misses the possession date in your Agreement for Sale, you can demand your entire investment back, plus interest for the whole period your money was held, plus any additional compensation for losses you can show — the Supreme Court has confirmed this is not a discretionary favour, it's a right.

Law: RERA Act s.18 · Authority: MoHUA / State RERA authorities · Status: in force (effective 1 May 2016) · Checked 25 Sept 2026

What you need to know

File the refund claim with your state RERA authority (not the adjudicating officer, which handles compensation-only claims)
Interest is calculated at the state's prescribed rate (commonly SBI's highest MCLR plus 2%) from the date you paid
You can pursue this alongside, or instead of, a consumer forum complaint (Imperia Structures, 2020)
RERA orders are enforced like arrears of land revenue if the builder doesn't pay (s.40)

Who this applies to: buyers, NRIs

Official / primary source: maharera.maharashtra.gov.in (government source)

The law behind it

RERA Section 18 — Refund, Interest and Compensation for Delay

This is the section buyers use most. If a builder misses the possession date in the agreement, a buyer who wants out can demand a full refund with interest; a buyer who wants to stay is entitled to monthly interest for every month of delay until possession.

Section 18, Act No. 16 of 2016 · in force · source

Newtech Promoters v State of UP - RERA validity, refund with interest

The Supreme Court upheld the constitutional validity of RERA, including its power to apply retroactively to ongoing projects, and confirmed that a buyer can get an unconditional refund with interest under Section 18 if the builder fails to give possession on time. It also clarified which RERA officer (Authority vs Adjudicating Officer) handles which kind of claim.

Civil Appeal Nos. 6745-6757 of 2021 · in force · source

Kolkata West International City v Devasis Rudra - refund over forced possession

The Supreme Court held that a buyer cannot be compelled to accept possession of an incomplete or badly delayed flat. Where delay is unreasonable, the buyer is entitled to a full refund of the money paid, with interest, instead of being pushed into taking a flat years late.

II (2019) CPJ 29 (SC) · in force · source

Work out your own numbers

CAPGAIN's free calculators cover capital gains (12.5% and 20%-indexed side by side), TDS on property, stamp duty and registration by state, home-loan EMI and prepayment.

Open the CAPGAIN calculators