Allottees under RERA enjoy rights that go far beyond mere possession. Section 18 of the Real Estate (Regulation and Development) Act, 2016 entitles a buyer to a full refund with interest if the developer fails to deliver possession within the agreed time — or, alternatively, monthly interest until possession is delivered. The choice belongs to the allottee, not the builder.
Section 14(3) extends structural defect liability to five years from possession. Builders cannot contract out of these statutory protections. Allottees discovering seepage, structural cracks or defective fitments within 5 years can demand rectification — and where the builder refuses, file complaints before the relevant state RERA authority.
The adjudicating officer can pass interim orders, including on continuation of construction, escrow of receipts, and restraint orders against further sales. These interim powers are underused — most allottees wait until possession is decreed to seek relief, missing the leverage that interim orders provide during ongoing project execution.
Section 31 complaints are forum-flexible. Allottees can file before RERA, the Consumer Commission (under CPA 2019), or pursue civil litigation. Each forum has different cost-benefit profiles. RERA is fastest for refund and possession matters; Consumer Commission is better for compensation; civil suit is appropriate for unique fact patterns or where multiple parties are involved.
Class actions are increasingly common. Multiple allottees of the same project can file consolidated complaints — under Section 35(1)(c) CPA 2019 (with court permission) or coordinate parallel RERA filings. This dramatically reduces individual cost and increases pressure on the developer. We have coordinated multi-allottee class actions across Gurgaon, Noida and Delhi projects.
Penalty under Section 59 (failure to register) and Section 61 (contravention of provisions) can reach 10% of project cost. These are deterrent provisions — and the appellate bench of state RERAs has been increasingly willing to impose them. Builders who delay or fail to register projects face cumulative regulatory exposure that often exceeds the underlying allottee claims.