Home possession delayed? Here's how RERA can help buyers claim compensation

A recent order in Kerala highlights how homebuyers can seek compensation, refunds or possession through RERA

A Kerala Real Estate Regulatory Authority (K-RERA) order directing a developer to pay 16.65 per cent annual interest to homebuyers for a delayed housing project has put the spotlight back on the remedies available under the Real Estate (Regulation and Development) Act, 2016. The ruling is a reminder that homebuyers across India can seek compensation, interest, refunds or possession by filing complaints with their respective state RERA authorities. 

K-RERA order puts focus on buyers' rights

K-RERA recently directed a developer to pay simple interest at 16.65 per cent per annum to two homebuyers for a prolonged delay in handing over their apartment in a residential project in Thiruvananthapuram. The authority also ordered the developer to complete the flat and common amenities, obtain the occupancy certificate and execute the sale deed within a specified period.

 

 

The authority refused to accept reasons such as demonetisation, floods, the pandemic and labour shortages as sufficient justification for a delay that stretched beyond seven years.

 

The ruling reinforces that developers remain accountable for meeting possession timelines promised under the law.

 

Why the order matters

Legal experts say the decision reflects a broader trend of RERA authorities taking a stricter approach towards delayed housing projects and strengthening consumer protection.

 

“RERA has fundamentally strengthened the position of homebuyers by providing a specialised forum for disputes relating to delays, defective construction, false promises and refunds. Compared to ordinary civil litigation, it offers a faster and more effective mechanism to enforce buyers' rights,” said Keyur Gandhi, managing partner, Gandhi Law Associates.

 

However, he added that buyers should ensure their complaint is supported by documents such as the builder-buyer agreement, payment receipts and correspondence with the developer. They should also verify the project's RERA registration before initiating proceedings.

 

According to Saloni Paliwal, advocate, Delhi High Court, the order reiterates that delays in handing over possession cannot be treated as a routine commercial inconvenience. If developers continue to retain buyers' money without delivering projects on time, they may face financial consequences under RERA. She added that the online complaint mechanism makes it easier for buyers to enforce their rights instead of accepting prolonged delays.

 

Who can file a complaint?

 

Under the Real Estate (Regulation and Development) Act, 2016, any aggrieved person can approach the RERA authority if a developer violates provisions of the Act or project commitments.

 

Eligible complainants include:

 

• Individual homebuyers
• Associations of allottees
• Registered voluntary associations

 

Complaints involving violations of RERA provisions are filed before the Authority, while claims seeking compensation under specified sections of the Act are filed before the Adjudicating Officer.

 

A complainant may appear personally or appoint an authorised representative, including a lawyer or certain qualified professionals, to present the case.

 

How to file a complaint with RERA

 

While this report uses the Kerala RERA process as an example, every state has its own RERA authority with a similar online complaint mechanism. The exact portal and filing requirements may vary slightly.

 

Step 1: Register as a complainant

 

Visit your state's RERA website and register as a complainant. The process generally requires you to create an account, verify your email address and complete your profile before filing a complaint.

 

Step 2: Complete your profile

 

After logging in, complete your complainant profile by providing the required personal details. Most RERA portals require this step before a complaint can be submitted.

 

Step 3: Submit the complaint

 

You will generally need to provide details of the complainant and the developer, explain the dispute and upload supporting documents. If the project is registered with RERA, the portal may automatically fetch certain project details.

 

These generally include:

 

• Builder-buyer agreement
• Payment receipts
• Correspondence with the developer
• Statement of facts
• Relief sought
• Supporting documents, if any
• Authorisation letter, where applicable

 

The complainant also needs to declare that the matter is not already pending before another court or tribunal.

 

Step 4: Pay the prescribed fee

 

Once the complaint is reviewed, applicants can pay the prescribed fee online. The complaint is then submitted for consideration by the concerned RERA authority.

 

Keep documents ready before filing

 

Experts say documentation often determines the strength of a case.

 

“The real strength of a forum like RERA lies in making justice accessible to ordinary homebuyers without forcing them into years of expensive litigation. Its complaint mechanism is simple enough to navigate even without legal help, allowing buyers to register online, upload documents and seek relief through a streamlined process. A legal remedy is meaningful only when ordinary people can effectively use it, and by lowering these barriers, RERA has done much to balance the relationship between buyers and developers,” said Fazl Askari, senior associate, PSL Advocates & Solicitors.

 

Delayed possession can be costly for developers

 

The recent order also serves as a reminder that financial liability for delays can be significant.

 

“The judgment reminds promoters that delaying projects can result in substantial financial consequences through high interest payments. Developers must adhere to the promised completion date and cannot hand over units without obtaining an occupancy certificate. Common areas and promised infrastructure must also be completed before possession is treated as complete,” said Supriya Majumdar, partner, Elarra Law Offices.

 

RERA increasingly emerging as a consumer protection law

 

Legal experts believe RERA is evolving beyond being a sector regulator into a stronger consumer protection framework.

 

“The evolving judicial approach, along with proactive enforcement by RERA authorities, reflects a clear shift towards greater accountability in the real estate sector. Homebuyers are no longer expected to bear indefinite delays while developers rely on commercial or administrative challenges. Orders directing payment of interest, completion of projects and execution of conveyance documents reinforce that RERA is as much a consumer protection law as a regulatory framework,” said Alay Razvi, managing partner, Accord Juris.

 

Echoing this, Shashank Agarwal, founder of Legum Solis, said the online complaint mechanism has made justice more accessible, transparent and efficient. He added that while RERA provides a strong statutory safeguard, homebuyers should maintain proper documentation, understand the remedies available and pursue complaints diligently to secure effective relief.