One of my clients recently had a case which I am explaining below and if you are stuck in such similar situation, here is what to do.
Note: Due to attorney-client privilege, I cannot disclose complete case details or identify the actual parties involved. However, I am sharing the essential facts and legal approach so that if you find yourself in a similar situation, you can understand the available solutions and legal remedies.
TL;DR: Taking possession of your apartment does not waive your right to claim delay compensation under RERA. Builders cannot force you to accept low-value vouchers or sign away your rights. Pay the pending amount under protest, take possession, and file your RERA complaint. Recent Supreme Court rulings support this approach.
Mr. Arjun Mehta booked an apartment in a project by a well-known brand in the consumer goods space that also runs a real estate vertical. The project was located in the Hinjewadi area of Pune. The builder-buyer agreement promised possession by June 2023. But the actual offer of possession came only in March 2026 — a delay of nearly three years.
Arjun repeatedly asked the builder for delay compensation under the agreement. The builder refused, citing COVID-19 and GRAP-4 pollution restrictions as force majeure events. Another buyer from the same building had already approached RERA and won a compensation order worth ₹23 lakh. But the builder claimed they were fighting that order and hadn't paid a rupee. Worse, local real estate agents whispered that the builder was offering ₹1,00,000 worth of Amazon vouchers to buyers — in exchange for a full waiver of all future claims.
Arjun still owed a few lakhs towards the final possession amount. The builder threatened to cancel the sale if he didn't pay up. Unsure of his rights, he first spoke to a general practice lawyer who told him it was hopeless. That's when he approached the Chamber of Advocate Sudhir Rao.
Advocate Sudhir Rao and his office immediately identified the core issue: the builder was conflating possession with discharge of all obligations. The office advised Arjun to pay the balance under protest, take possession, and file a detailed RERA complaint for delay compensation separately. The expertise of Advocate Sudhir Rao in real estate and RERA litigation — particularly the procedural strategy around force majeure claims — helped secure a favourable order from the RERA authority. The builder was directed to pay compensation calculated at the rate prescribed under the agreement read with Section 18 of RERA, with interest.
Key Facts of the Case
- Apartment booked in 2018; original possession date was June 2023.
- Actual offer of possession was made in March 2026 — a delay of 33 months.
- Builder cited COVID-19 and GRAP-4 pollution bans as force majeure reasons.
- Another buyer from the same project had already won a RERA compensation order of ₹23 lakh.
- Builder was offering ₹1,00,000 worth of gift vouchers in exchange for a no-claim waiver.
- Buyer still owed several lakhs towards the final possession amount.
- Key legal question: does taking possession extinguish the right to claim delay compensation?
- Supreme Court rulings confirm that possession and compensation are separate statutory rights.
The Direct Legal Answer
The short answer is yes, you can take possession and still file a RERA complaint for delay compensation. Taking possession does not automatically extinguish your right to claim compensation for past delays under Section 18 of RERA. The Supreme Court has reaffirmed this position in recent judgments. The builder's argument that possession equals acceptance of no further claims has been consistently rejected by courts.
What about the pending possession amount?
Pay the amount, but do so under protest. Send a written communication to the builder stating that you are paying only to avoid cancellation, and that you reserve all your rights to claim delay compensation. Keep a copy of this letter and the payment receipt.
Can the builder cancel my sale for non-payment?
Yes, if there is a genuine default in payment, the builder may have the right to cancel. But if you are willing to pay, do not delay. File your RERA complaint immediately after taking possession. Do not wait for the builder to act.
Should I accept the gift voucher?
Absolutely not. Accepting the voucher and signing a waiver will extinguish your right to claim the much larger statutory compensation. A ₹1,00,000 voucher is a fraction of what you may be legally entitled to. Reject it in writing.
Advice in Such Cases
Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation to come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.
Second, document everything. Every email, WhatsApp message, letter from the builder, payment receipt, and the builder-buyer agreement itself. These will form the backbone of your RERA complaint. Third, do not sign any waiver or no-objection certificate under pressure. And here's the thing — RERA matters involve nuanced procedural strategies around force majeure claims and evidence of delays. A general practitioner may not know how to challenge a builder's claim that COVID-19 or pollution bans caused the entire delay. An advocate who regularly handles RERA litigation will know exactly what documents to demand from the builder and how to place the burden of proof where it belongs — on the builder.
Applicable Sections of Law
- Section 18 of the Real Estate (Regulation and Development) Act, 2016 (RERA): The core provision for claiming refund or compensation for delay in possession. It entitles the allottee to receive interest at the prescribed rate for every month of delay.
- Section 19(5) of RERA: Clarifies that the allottee's obligation to pay does not waive the builder's liability for delay. The right to possession and the right to compensation are independent.
- Section 15 of the Limitation Act, 1963: Limitation period for filing a RERA complaint is generally 5 years from the date of default or the date when the cause of action arose.
- Indian Contract Act, 1872 — Section 73: Deals with compensation for loss or damage caused by breach of contract. Builders who fail to deliver on time are in breach of the builder-buyer agreement.
Limitation Period
For RERA complaints, the limitation period is 5 years from the date when the cause of action first arose — typically the original date of possession mentioned in the agreement. However, delay is a continuing wrong, so the clock resets each month the builder remains in default. Missing the limitation period can be fatal to your claim. Courts do have the power to condone delay under Section 5 of the Limitation Act, but this is discretionary and requires strong justification. Do not sit on your rights.
Interim Reliefs Available
In RERA proceedings, you can seek interim relief even before a final hearing. The RERA authority can direct the builder not to alienate the property or to deposit a portion of the compensation amount. In civil suits for breach of contract, you can apply for an injunction under Order 39 Rule 1 and 2 CPC to prevent the builder from transferring the apartment to a third party. Attachment before judgment under Order 38 CPC is also available if you can show the builder is attempting to dispose of assets. Early interim relief often forces the builder to negotiate seriously.
How Courts Typically Approach Such Cases
Courts and RERA authorities are generally pro-homebuyer in delay compensation cases. The burden of proof is on the builder to show that the delay was caused by force majeure events beyond their control. COVID-19 and GRAP-4 pollution bans are valid only if the builder can prove the precise period of disruption and that they applied for a formal extension from RERA. Courts do not accept blanket claims of force majeure. If the builder fails to produce contemporaneous evidence of delay (e.g., RERA extension orders, government notifications, site closure logs), the authority will hold them liable for the entire delay period.
Timeline of Legal Process
- Filing RERA complaint: 1-2 weeks for drafting and filing with all annexures.
- Notice to builder and initial hearing: Usually within 30-45 days.
- Builder's reply and evidence: Another 30-60 days, often extended by adjournments.
- Arguments and order: 4-8 months from filing, depending on the backlog of the particular RERA authority.
- Appeal (if any): Appeal to the RERA Appellate Tribunal, then High Court, then Supreme Court — can take 1-3 years.
- Execution of order: If the builder does not pay, you file an execution application. This can add 6-12 months.
Understanding the Costs
The total cost of a matter like this varies significantly from one case to the next — it depends on the complexity of the dispute, the forum involved, the number of hearings, and the specific facts of your situation. There is no single fixed figure that applies to everyone.
A professional advocate can give you an accurate estimate only after reviewing all your facts and documents in a consultation.
Can the Matter Be Settled Out of Court?
Yes, RERA actively encourages mediation and settlement. You can approach the RERA authority for a mutual settlement with the builder. But never settle for a fraction of what you are legally entitled to. A ₹1,00,000 voucher for a 33-month delay is absurd. Calculate your compensation at the rate specified in your agreement (typically 9-12% per annum on the total amount paid). If the builder offers a reasonable settlement, get it reduced to writing and filed with RERA as a consent order. Otherwise, proceed with the complaint.
Common Mistakes People Make
- Taking possession without protest: This can be used by the builder to argue that you accepted the delay. Always pay and take possession "under protest" and in writing.
- Signing a waiver or no-claim certificate: Never sign anything that gives up your right to claim compensation, even if the builder pressures you.
- Accepting low-value compensation: A ₹1,00,000 voucher for a delay of nearly three years is a trap. Calculate your actual entitlement.
- Engaging a lawyer without RERA experience: This is a specialised area. A general practitioner may not know how to challenge a builder's force majeure claims or how to present the evidence effectively. An advocate who regularly handles RERA matters will know the specific procedural strategies that lead to faster and more favourable outcomes.
- Delaying the complaint: The longer you wait, the harder it becomes to gather evidence and the more likely the builder will argue that you acquiesced to the delay.
- Posting about the case on social media: This can prejudice your case and give the builder material to use against you.
FAQs People Normally Have
Can I claim compensation after taking possession?
Yes. The Supreme Court has clearly held that taking possession does not extinguish your statutory right to claim delay compensation under Section 18 of RERA.
What if the builder threatens to cancel my booking?
Pay the pending amount under protest and file your RERA complaint immediately. The builder cannot cancel the booking once a complaint is pending before RERA without its permission.
Is COVID-19 a valid excuse for the builder?
Only if the builder can prove the precise period of disruption and that they applied for and obtained a formal extension from RERA. A blanket claim is unlikely to succeed.
How much compensation can I expect?
Typically, the builder-buyer agreement specifies a rate (e.g., 9-12% per annum on the total amount paid by you). If the agreement is silent, RERA prescribes the rate. For a ₹50 lakh apartment with a 33-month delay, compensation could easily exceed ₹15-20 lakh.
Can I file a case directly in civil court instead of RERA?
Yes, but RERA is faster and more effective for delay compensation. Civil courts can take years. RERA authorities are mandated to dispose of complaints within 60 days.
This article is general legal information, not legal advice. Consult a qualified advocate about your specific situation.
Advocate Sudhir Rao, Supreme Court of India