Possession Delay Compensation
Estimate the interest a builder owes for delayed possession under RERA, based on the SBI marginal cost lending rate plus 2%.
💼 Are you a real estate agent or broker? Send this calculator to your buyers on your own branded listing page — every enquiry comes straight to your WhatsApp. Create free agent page →Under Section 18 of RERA, if a promoter fails to hand over possession by the date in the agreement, the buyer may either withdraw and claim a full refund with interest, or stay in the project and claim interest for every month of delay.
The prescribed rate in most states is the SBI highest marginal cost of lending rate plus 2%. This estimates what you are owed on the amount you have already paid.
What RERA gives you
Section 18 offers the buyer a choice when possession is late:
- Withdraw — full refund of everything paid, plus interest at the prescribed rate from the date of each payment, plus compensation.
- Continue — keep the booking and receive interest for every month of delay until possession is actually handed over.
Interest = amount paid × (SBI MCLR + 2%) ÷ 12 × months delayed
A worked example
₹60 lakh paid, 18 months late, MCLR 9% plus 2% = 11%: interest accrues at ₹55,000 a month, so ₹9,90,000 for the delay. If you were also paying ₹25,000 of rent, your total loss is around ₹14.4 lakh.
How to actually claim
- Check the possession date written in the builder-buyer agreement and the date registered with RERA — the later of these usually governs, including any grace period stated.
- Send a written demand to the promoter first, by email and registered post.
- File a complaint with your state RERA authority — the fee is modest, typically ₹1,000–₹5,000, and you can appear without a lawyer.
- Keep every receipt, the allotment letter, the agreement and all correspondence.
The prescribed rate and procedure vary slightly by state, and force majeure — including the periods states notified during COVID — can extend the deadline lawfully. This is an estimate to size the claim, not legal advice.
Turn a calculation into an enquiry
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Create your free property pageFrequently asked questions
What compensation can I get for delayed possession?
Under Section 18 of RERA you can either withdraw with a full refund plus interest, or continue and claim interest for every month of delay, usually at the SBI highest MCLR plus 2%.
How do I file a RERA complaint?
Online through your state RERA portal, with a modest fee. Attach the agreement, payment receipts and correspondence. Complaints are heard by the authority and you may appear in person.
What if the builder cites force majeure?
Genuine force majeure can extend the deadline, and most states notified extensions during COVID. It does not cover ordinary funding or approval delays, which remain the promoter’s risk.
Can I claim my rent as well as interest?
The statutory entitlement is interest. Some authorities have additionally awarded compensation covering rent, but it is discretionary rather than automatic — the interest claim is the reliable one.