Claiming Refunds and Compensation Under RERA: What Every Homebuyer Should Know
RERA Refunds & Compensation: What Homebuyers Must Know
Buying a home is a big dream for many people, and they even put their lifetime saving just to own a simple accommodation. But sometimes, builders do not give the home on time or break their promises. If this happens to you, don’t worry. There is a law to protect you. It’s called the Real Estate (Regulation and Development) Act, 2016, or RERA. Section 18 of this law gives homebuyers the right to ask for a refund, interest, or compensation.
What is Section 18 of RERA?
Section 18 of RERA helps you when a builder delays the project or does not follow the agreement. It gives you three main rights:
• Full refund with interest
• Interest for the delay if you don’t cancel
• Compensation if there is a legal issue with the land
• or any other promise is broken
Let’s look at these rights one by one.
Right to Refund with Interest
If the builder does not give you the home on time, you can choose to cancel the booking. You can ask for a full refund of the money you paid by filling a complaint on RERA's website. You will also get interest on the amount. You don’t need to give a reason. The law says this is your right. Even if the builder says the flat is ready or has the occupancy certificate, you can still get your money back.
Right to Interest if You Don’t Cancel
If you decide to wait and not cancel the flat, the builder has to pay you interest for the delay. For example, if the builder promised possession in June 2023 but gives the flat in June 2024, you will get interest for 12 months. This applies even if you don’t have a full agreement. A booking letter or email with the possession date is enough.
Right to Compensation
If the land of the project has a legal problem or the builder has broken any rule, you can ask for compensation. There is no time limit to file this complaint. You can also ask for compensation if the builder made promises in the brochure or ad and didn’t follow them.
How to File a Complaint Under RERA
Here is how you can claim a refund, interest, or compensation:
1. Collect All Documents: Keep your sale agreement, payment receipts, emails, brochures, and proof of delay like rent slips.
2. Go to the Right Authority: For a refund or interest, go to your State RERA authority. For compensation, file the case with the Adjudicating Officer (AO). You may need to file two complaints if you want both.
3. Visit Your State’s RERA Website: Every state has a website like MahaRERA for Maharashtra, UP RERA for Uttar Pradesh, etc.
4. Register and Submit Your Complaint: Sign up on the site, fill the complaint form, attach your documents, and pay a fee (Rs 1,000/- to Rs 5,000/-).
5. Attend the Hearing: You can go by yourself or take a lawyer. The authority will listen to both sides.
6. Get the Final Order: If your complaint is right, the builder will be told to pay you.
7. Follow Up if Builder Doesn’t Pay: If the builder ignores the order, file an execution application. The authority can take action and recover your money.
Final Words
RERA is a strong law that helps you fight for your rights. If your home is delayed or the builder has broken promises, don’t stay silent. Use RERA and get your money or compensation. Know your rights and take the right steps to protect your dream home.
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