Delayed Flat Possession: Homebuyer Rights under RERA

Delay in handing over flats remains one of the most common disputes between homebuyers and builders, including in Hyderabad’s growing residential market. The Real Estate (Regulation and Development) Act, 2016 (RERA), administered in the State by the Telangana Real Estate Regulatory Authority, gives buyers specific remedies.

Your options when possession is delayed

Under Section 18 of RERA, if the promoter fails to give possession as per the agreement for sale:

• the allottee may withdraw and claim a refund of the amount paid with interest and compensation; or
• the allottee may stay in the project and claim interest for every month of delay until possession is handed over.

What the Supreme Court has said

• In Newtech Promoters and Developers (P) Ltd. v. State of U.P., (2021) 18 SCC 1, the Court held that the right to a refund under Section 18 is unconditional and absolute where the promoter fails to give possession within the stipulated time, regardless of unforeseen events not attributable to the buyer.
• In Pioneer Urban Land & Infrastructure Ltd. v. Govindan Raghavan, (2019) 5 SCC 725, the Court held that one-sided clauses in builder–buyer agreements are unfair trade practices and buyers cannot be bound by them.
• In Wg. Cdr. Arifur Rahman Khan v. DLF Southern Homes (P) Ltd., (2020) 16 SCC 512, the Court held that buyers who chose to take possession were still entitled to compensation for the delay.

Other protections

• A promoter cannot accept more than 10% of the cost as advance without first entering into a registered agreement for sale (Section 13).
• Projects must be registered with the RERA authority, and project details are available on its website.
• Structural defects reported within five years of possession must be rectified by the promoter (Section 14(3)).

Practical steps

• Keep the agreement, payment receipts, brochures and correspondence.
• Check the project’s registration and declared completion date on the TG-RERA website.
• Send a written demand to the builder before filing a complaint.

Key judgments

• Newtech Promoters and Developers (P) Ltd. v. State of U.P., (2021) 18 SCC 1.
• Pioneer Urban Land & Infrastructure Ltd. v. Govindan Raghavan, (2019) 5 SCC 725.
• Wg. Cdr. Arifur Rahman Khan v. DLF Southern Homes (P) Ltd., (2020) 16 SCC 512.