What Happens If a Builder Misses the RERA Possession Date?

Booking a flat in a RERA-registered project gives homebuyers one big assurance: a legally committed possession date.
But in reality, thousands of buyers still face delays.

So the real question is:
What exactly happens if a builder misses the RERA possession date – and what are your rights as a homebuyer?

This guide explains the legal consequences, compensation options, refund rights, and practical steps buyers should take if possession is delayed under RERA.

What Is a RERA Possession Date?

Under the Real Estate (Regulation and Development) Act, every registered project must clearly mention:

• Possession date
• Grace period (if any)

This date is uploaded on the official portal of the
Real Estate Regulatory Authority (RERA)
and becomes legally binding on the builder.

📌 Once registered, the builder cannot change the possession date without valid legal grounds.

What Counts as “Missing” the RERA Possession Date?

A builder is considered in default if:

• The possession date (plus grace period) has expired
• The flat is not ready for handover
• Occupancy Certificate (OC) or Completion Certificate (CC) is not issued

Even if construction looks “almost complete”, delay still counts under RERA.

Immediate Legal Consequences for the Builder

If possession is delayed, the builder becomes liable under RERA for:

1. Monthly Interest to the Buyer

The buyer is entitled to interest for every month of delay.

• Interest rate = SBI MCLR + 2% (varies by state)
• Calculated on amount paid by the buyer
• Payable until possession is offered

📌 This interest is a statutory right, not a goodwill gesture.

2. Buyer Can Continue the Project or Exit

RERA gives buyers two clear choices:

Option A: Stay in the Project

• Buyer continues with the booking
• Builder must pay monthly delay interest

Option B: Exit the Project

• Buyer can withdraw from the project
• Builder must refund:
  • Entire amount paid
  • Plus interest
• Refund timeline: usually 45-90 days (state-specific)

Can a Builder Avoid Liability by Giving Excuses?

Common excuses builders use:

• Pandemic
• Labor shortage
• Material price increase
• Financial issues

Reality Under RERA:

Only force majeure events are accepted, such as:

• Natural disasters
• War
• Court stay orders

💡 Financial stress or poor planning is NOT a valid excuse under RERA.

What If the Buyer Has a Home Loan?

This is where many buyers suffer silently.

If possession is delayed:

• You may still be paying EMIs + rent
• Builder interest compensation is meant to offset this burden

📌 RERA interest helps buyers recover part of:

• EMI loss
• Opportunity cost
• Rental expenses

What If the Builder Offers “Possession” Without OC?

This is a common trap.

⚠️ Possession without Occupancy Certificate is illegal in most states.

Risks:

• No water/electricity connection
• No society formation
• Banks may refuse final disbursement
• Legal complications later

👉 Buyers should not accept possession without OC/CC.

How to File a RERA Complaint for Delay

If the builder delays possession, here’s what to do:

Step-by-Step:

1. Visit your state RERA portal
2. Register as a complainant
3. Upload:
   • Allotment letter
   • Payment receipts
   • Builder-buyer agreement
4. Clearly mention:
   • Possession date
   • Delay period
   • Relief sought (interest/refund)

⏱️ Most RERA authorities aim to resolve cases within 60 days.

Can Builder Cancel Your Allotment Instead?

No – not legally.

If you have:

• Paid as per schedule
• Not defaulted on payments

Then:

• Builder cannot cancel your allotment due to delay-related disputes

Any such cancellation can be challenged before RERA.

Real Impact: Why RERA Delay Clauses Matter

Before RERA, buyers had little protection.
After RERA:

• Possession date = legal promise
• Delay = financial penalty
• Buyer = decision-maker

This has significantly shifted power away from builders.

FAQs: RERA Possession Delay

Final Takeaway

If a builder misses the RERA possession date:

• It’s a legal default
• Buyers have strong rights
• Silence only helps the builder

📌 Whether you want interest, refund, or faster possession, RERA gives you leverage – use it early, not late.