Possession Delay Compensation
Estimate compensation due for delayed possession per RERA guidelines.
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- RERA §18: builder must pay compensation @ MCLR + 2% for delay.
- MCLR assumed SBI 1-year MCLR; vary by bank.
- Compensation is in addition to refund or possession.
Frequently Asked Questions
What compensation am I entitled to if the developer delays possession under RERA?
Under RERA Section 18, if the developer fails to deliver possession on the date specified in the agreement, the buyer is entitled to: (1) compensation for every month of delay, calculated at the rate prescribed by the state RERA authority (typically the SBI MCLR + 1-2%, approximately 8-9% per annum on the total amount paid); or (2) withdraw from the project and receive a full refund with interest. The developer cannot deduct any amount from this compensation.
How is compensation for possession delay calculated?
Compensation = (Total Amount Paid by Buyer) × (Interest Rate) × (Number of Months Delayed) / 12. For example, if you paid ₹80 lakh and the delay is 24 months with interest at 9% per annum: Compensation = ₹80,00,000 × 9% × 24/12 = ₹14,40,000. The interest rate is typically linked to the State Bank of India's Marginal Cost of funds-based Lending Rate (MCLR) + 1-2% as specified by the respective state RERA authority.
What steps should I take if my developer delays possession?
Follow this sequence: (1) Send a written notice to the developer citing the RERA registration number and agreement date; (2) File a complaint on the WBRERA portal (rera.wb.gov.in) with all documents - agreement, payment receipts, builder-buyer agreement; (3) WBRERA will issue a notice to the developer and conduct a hearing; (4) If WBRERA rules in your favour, it will order the developer to pay compensation or refund with interest; (5) If the developer doesn't comply, approach the Real Estate Appellate Tribunal and then the High Court.
Can the developer extend the possession date unilaterally?
No. Under RERA Section 8, the developer cannot extend the possession date without the written consent of at least two-thirds of the allottees (buyers) in the project. If the developer claims a "grace period" or "extension" without following this process, it is a violation of RERA. Additionally, the developer must show valid cause for delay (e.g., force majeure events like natural disasters, but not slow sales or funding issues).
What is the difference between RERA compensation and withdrawal with refund?
Under RERA Section 18, you have two options if possession is delayed: (1) Continue with the project and receive monthly compensation from the developer until actual possession - this is suitable if you still want the property and believe it will be completed; (2) Withdraw from the project and receive a full refund of all amounts paid with interest - suitable if you've lost faith in the project's completion or need the funds for another purchase. Once you choose withdrawal, you typically cannot revert to claiming monthly compensation.
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