Yes, a flat buyer may be entitled to a refund along with interest from the builder, depending on the circumstances and the applicable law.
Under the Real Estate (Regulation and Development) Act, 2016 (RERA), if a builder fails to complete or hand over the property according to the agreed terms, particularly when there is a substantial delay in possession, the buyer may have the right to seek appropriate relief. In certain circumstances, a buyer who withdraws from the project can claim a refund of the amount paid along with applicable interest and compensation, subject to the facts of the case.
When can a buyer seek a refund with interest?
A buyer may consider seeking a refund where:
- The builder has significantly delayed possession beyond the promised date.
- The builder has failed to comply with important terms of the agreement.
- The project has been abandoned or is unlikely to be completed within a reasonable period.
- The builder has made representations that were materially false or misleading.
- The buyer is legally entitled to withdraw from the project because of the builder's default.
How can the buyer claim the money?
The buyer should first review the builder-buyer agreement, payment receipts, possession date and project details. A written demand for refund can then be sent to the builder.
If the builder does not resolve the matter, the buyer may approach the State RERA Authority or, where appropriate, the consumer commission and seek relief such as refund, interest and compensation.
The amount and rate of interest are not automatically the same in every case. They can depend on the applicable RERA rules, the agreement, the nature of the builder's default and the decision of the relevant authority or court.
Therefore, before filing a complaint, the buyer should keep copies of the agreement, payment receipts, correspondence with the builder, possession-related communications and other relevant documents.
