Yes. RERA can order a builder/promoter to refund the amount paid by a homebuyer, particularly when the promoter fails to provide possession within the time agreed in the sale agreement or is otherwise unable to fulfil the obligations under RERA.
Under Section 18 of the Real Estate (Regulation and Development) Act, 2016, if the allottee chooses to withdraw because the promoter fails to give possession as agreed, the promoter is generally required to return the amount received along with applicable interest.
When can RERA order a refund?
A refund may be ordered in situations such as:
The builder fails to hand over possession within the agreed time.
The project is substantially delayed or the promoter is unable to give possession.
The promoter's RERA registration is suspended or revoked, or the developer discontinues its business.
There are other circumstances covered by Section 18 that give the allottee a right to withdraw.
RERA authorities have in fact issued orders directing promoters to refund the entire amount received from homebuyers along with interest.
The exact interest rate and refund timeline depend on the applicable state RERA rules. For example, state rules may prescribe a particular interest rate and time period for payment.
In short: If a builder has significantly failed to meet its obligations and the homebuyer legally chooses to withdraw, the homebuyer can approach RERA seeking refund of the amount paid plus applicable interest. The Regulatory Authority has the power to determine and order such a refund.
