RERA refund / delay interest vs specific performance — Section 18, forum choice for builder delay (2026)
How a homebuyer’s choice between RERA remedies under Section 18 of the Real Estate (Regulation and Development) Act, 2016 (withdraw and refund with interest, or stay and claim monthly delay interest) differs from a civil suit for specific performance of an agreement for sale; Authority vs Adjudicating Officer themes (refund/interest vs compensation), Section 79 bar on civil courts for matters RERA is empowered to decide, and when title / sale-deed execution issues may still need a civil court. Distinct from our general RERA builder-delay guide. Educational only — not legal advice.
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Section 18 RERA — two allottee choices on delay
If the promoter fails to complete or is unable to give possession as per the agreement for sale, Section 18(1) lets the allottee (a) withdraw from the project and obtain return of the amount paid with interest at the prescribed rate, or (b) stay in the project and receive interest for every month of delay until possession. The election is the allottee’s. Interest rates are prescribed in Central/State RERA rules (often linked to a benchmark such as SBI MCLR + a margin — always confirm the rate notified for your State RERA).
Authority vs Adjudicating Officer (high level)
Complaints under Section 31 go to the Regulatory Authority for many statutory directions including refund and delay interest. Compensation claims under the Act’s compensation provisions are typically determined by the Adjudicating Officer (Section 71, factors in Section 72). Supreme Court case law (including Newtech / related line explaining Authority vs AO roles) treats refund and interest for delay as Authority territory and compensation as AO territory — State portal forms (often Form M / Form N or State equivalents) reflect that split. Check your State RERA website for the exact forms and online filing steps.
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Specific performance — different relief, different forum logic
A suit for specific performance under the Specific Relief Act, 1963 asks the civil court to compel performance of the contract (for example executing a sale deed / handing over on agreed terms), sometimes with damages. RERA’s Section 18 path is built around refund-or-delay-interest for registered-project possession failure — it is not a full substitute for every contractual specific-performance decree. Section 79 RERA bars civil courts from entertaining suits in respect of matters which the Authority, Adjudicating Officer or Appellate Tribunal is empowered to determine, and restricts injunctions against actions under the Act. Pure statutory refund/delay claims are therefore usually routed to RERA; packaging them only as a civil suit can face a s. 79 objection.
When civil court themes still appear
Complex title disputes, cancellation of fraudulent documents, partition, or relief against persons outside the RERA promoter–allottee frame may still need civil remedies. Specific performance of sale-deed execution can raise forum questions that depend on how the claim is framed and what RERA is empowered to order in your State’s practice — case law and pleadings matter. Consumer commissions under the Consumer Protection Act, 2019 have also been held to retain concurrent jurisdiction in builder–buyer disputes in important Supreme Court rulings (for example Imperial Structures line) — strategy is fact-specific.
Practical documents
Builder–buyer agreement / allotment letter, payment receipts and bank proofs, project RERA registration number, sanctioned plans / brochure promises, demand letters, emails or messages about delay, and calculation of amounts paid. Note the promised possession date and any force-majeure clauses — they are argued, not automatically accepted.
How this differs from our RERA delay guide
Our rera-builder-delay guide introduces complaining about delay generally. This page focuses on choosing between refund, delay interest while waiting, compensation, and why specific performance is a different legal ask with different forum risks.
How Adhiwakta can help
We do not file RERA complaints or civil suits, calculate interest awards, or appear before any Authority. Adhiwakta is a facilitation platform, not a law firm. We do not file cases, appear before any authority, or promise any result. Use Ask Adhiwakta to describe your situation for general guidance from an independent advocate, or start with the AI helper to organise your facts and papers. Educational only — not formal legal advice.
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Frequently asked questions
- What can I claim under RERA Section 18 for delay?
- If possession is not given as agreed, you may withdraw and seek refund with prescribed interest, or continue and seek monthly delay interest until possession. Confirm the interest formula on your State RERA rules.
- Is specific performance the same as a RERA refund?
- No. Specific performance asks a civil court to compel contractual performance (such as sale-deed execution). RERA s. 18 is built around refund or delay interest for registered-project possession failure.
- What does Section 79 RERA do?
- It bars civil courts from entertaining suits in respect of matters the RERA Authority, Adjudicating Officer or Appellate Tribunal is empowered to decide, and restricts certain injunctions against actions under the Act.
- Who decides refund vs compensation?
- As clarified in Supreme Court authority on the RERA scheme, refund and delay interest are generally for the Regulatory Authority; compensation is typically for the Adjudicating Officer. Use your State’s prescribed forms.
- Does Adhiwakta file RERA complaints?
- No. We do not file before RERA or civil courts. Use Ask Adhiwakta or the AI helper for general educational guidance only.
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