Section 18 of the Real Estate (Regulation and Development) Act, 2016 gives an allottee a statutory right to refund with interest, or to interest for the period of delay, where a promoter fails to hand over possession by the date stated in the agreement for sale. The provision is compensatory rather than punitive in structure, and it operates independent of — and does not require proving — any separate claim in negligence or breach of contract; the statutory trigger is simply the missed possession date.
Allottees pursuing a Section 18 remedy typically proceed before the state Real Estate Regulatory Authority (RERA), which was set up specifically to give this kind of claim a faster, more specialised forum than ordinary civil litigation. The choice of remedy matters: an allottee electing a refund under Section 18 is generally treated as having exited the project, while one electing interest for delay is treated as continuing to await possession, and the two paths carry different practical and tax consequences worth weighing before filing.
As with most limitation-sensitive claims, allottees should confirm the applicable state RERA rules and any registration-specific timelines before assuming a uniform national deadline applies.
This note is legal commentary for general information and does not constitute legal advice. Consult an advocate for advice on your specific facts.