04 Apr 2025

Understanding RERA and Your Legal Rights as a Homebuyer

The Dream of a Home – and the Legal Reality

Owning a home is one of the most cherished dreams for millions of Indians. In pursuit of this dream, many book flats in under-construction projects, trusting the builder’s promise of timely delivery. However, in reality, possession is often delayed by years, causing immense financial and emotional stress. To protect homebuyers and regulate real estate practices, the Government enacted the Real Estate (Regulation and Development) Act, 2016 popularly known as RERA.

What is RERA and When Does it Apply?

RERA was enacted to bring accountability, transparency, and discipline to the real estate sector. It applies to any project where the land area exceeds 500 square meters or where more than eight flats are being developed. Importantly, even if a project was launched before the Act but failed to get a Completion Certificate (CC) by the time RERA came into force, it will still fall under RERA’s jurisdiction. For instance, if a flat was booked in 2010, with expected delivery by 2013, but the project remained incomplete till 2016 without a CC, it must comply with RERA.

What Can a Homebuyer Do If Possession is Delayed?

Buyers facing delayed possession can approach multiple legal forums, including RERA, Consumer Commission, and in some cases, even Criminal Court or NCLT. However, NCLT is limited to insolvency matters and is not the appropriate forum for seeking refund, compensation, or interest. The Supreme Court in Experion Developers v. Sushma Ashok Shiroor clarified that a buyer has the right to choose any available legal forum. But for delay-related disputes, RERA remains the most effective and speedy remedy.

If a buyer chooses to continue with the project despite delay, they are entitled to interest for every month of delay this is called Delay Possession Charges (DPC). If they decide to exit, they can seek a refund with interest, and even compensation in appropriate cases. These remedies are enforceable separately DPC does not take away the right to claim compensation.

Additionally, Section 19(10) of RERA mandates that a buyer must take possession within two months of the issuance of an Occupancy Certificate. But crucially, builders cannot offer possession without valid OC/CC just to escape interest liability.

Important Documents You Should Keep

The Agreement to Sale or Builder Buyer Agreement (BBA) is the cornerstone document in any flat booking. It mentions the promised date of possession, payment terms, and other obligations. Other critical documents include the booking form, allotment letter, receipts for payments, the builder’s financial ledger, and bank statements. Even if some receipts are missing, bank entries showing payments can be relied upon.

How to File a Complaint Under RERA (Step-by-Step Guide)

Filing a complaint under RERA is a structured but straightforward process that any aggrieved homebuyer can undertake. Although legal assistance is not mandatory, it is recommended to avoid errors in drafting, legal interpretation, and documentation. Here's how you can file a complaint:

Step 1: Visit the Official RERA Website

Go to the RERA portal of the state where your project is registered. For example:

https://www.haryanarera.gov.in for Haryana
https://www.up-rera.in for Uttar Pradesh

Each state has its own website for complaint registration and project tracking.

Step 2: Register on the Portal

Click on the option to “File Complaint” or “Citizen Registration”. Enter your basic details such as name, email ID, mobile number, and create a password to sign up.

Step 3: Fill in Complainant Details

After logging in, select “New Complaint”. Enter your personal details (name, address, contact), and project details (builder name, project name, RERA registration number).

Step 4: Upload Key Documents

Upload all relevant documents in PDF format. These typically include:

Booking form and Allotment letter
Builder Buyer Agreement / Agreement to Sale
All payment receipts or bank statements
Ledger statement (if available)
Any communication regarding possession
Demand letters from the builder (if any)
Copy of legal notice (if sent)

Each document must be labelled properly and uploaded under the correct category to avoid technical rejection.

Step 5: Mention Relief Sought

Clearly specify the relief you are seeking. For example:

Refund of amount paid with interest
Delay Possession Charges (interest for each month of delay)
Compensation for mental agony or loss
You can also request for cost of litigation if applicable.

Step 6: Pay Prescribed Fee

You will be required to pay a nominal fee (usually between ₹1000 to ₹5000 depending on the state and nature of complaint). Payment can be made online via net banking or UPI.

Step 7: Submit Complaint and Note Application Number

After final review, click on “Submit”. You will receive a complaint number or application ID, which can be used to track the status of your case on the portal.

Step 8: Keep Track of Hearing Dates and Orders

You will be notified via email or SMS about hearing dates. Appear on scheduled dates and ensure compliance with any further instructions by the Authority.

Common Myths vs. Legal Reality

A frequent misconception is that if a buyer has accepted possession or signed a NOC or indemnity bond, they lose the right to claim DPC or compensation. However, in the Ravi Dhaka v. Haryana Sahkari Vikas (2023) case, HRERA held that coercive or one-sided documents do not waive off statutory rights. Similarly, the Supreme Court in Pioneer Urban Land v. Govindan Raghavan ruled that if the buyer had no choice but to sign the builder’s terms, those clauses are not binding.

Another major myth is that compensation cannot be claimed after taking possession. But the apex court in Experion Developers case made it clear: buyers can demand compensation even after taking possession if there has been unreasonable delay or deficiency in service.

It is also important to remember that any unilateral clause in the BBA that restricts a buyer’s right to claim relief will not be held valid. Agreements made under duress or without fair bargaining power will not stand the test of law.

Where and How to File – Authority or AO?

Buyers often get confused between RERA Authority and Adjudicating Officer (AO). As clarified in Newtech Promoters v. State of UP (2021), complaints for refund, delay, or cancellation must be filed before the Authority, while compensation matters must be filed before the AO. The Authority will first determine whether the builder is at fault. Once that is established, compensation claims can be taken before the AO.

What if the Builder Doesn’t Comply with RERA Order?

If you win a case under RERA but the builder does not pay DPC or refund as ordered, the next step is to file an Execution Petition before the same RERA Authority. Many believe that legal proceedings will take years, but most RERA cases are decided in under a year, depending on complexity and cooperation from both sides.

Rate of Interest and Refund Timelines

Under Delhi RERA, the applicable interest rate is SBI’s highest MCLR + 2%, which comes to around 11.10% as of now. Under UP-RERA, refund must be processed within 45 days of the order, while under HRERA, the timeline is 90 days.

Subvention Schemes and Financial Fraud Concerns

The Supreme Court recently ordered a CBI investigation into alleged frauds involving banks and builders in subvention schemes. If you invested under such a scheme and possession is delayed or EMI is being deducted without delivery, it’s crucial to seek legal help immediately. This issue is under serious judicial scrutiny, and big developments are expected.

Conclusion
RERA has empowered homebuyers with legal tools to hold builders accountable. While the legal path may involve documentation and procedures, it is no longer biased against the common man. The law recognizes your rights and provides a mechanism to enforce them—be it through interest for delays, full refund, or fair compensation. Always remember: your dream home is not a charity by the builder; it’s your contractual and statutory right.

Always consult a qualified advocate before taking any legal action. Stay legally aware and informed.

Disclaimer

The contents in this article are just for informational purposes only. Efforts have been made to ensure the accuracy and reliability of information, the author(s) and publisher do not guarantee its completeness or precision. Any matter written in this article does not express the opinion of the author or the publisher. Additionally, it does not reflect the views of the organisation. Readers should self-analyse the information and perceive accordingly. The author(s), The publisher and the organisation are not responsible for any losses or damage occurring due to the interpretation of the article.