Standard-Form Agreement, Statutory Rights: K-RERA's Nikoo Homes IV Delay Interest Order
K-RERA ordered Bharathiya Urban to pay Rs 4,95,468 delay interest to Nikoo Homes IV buyers, holding that a standard-form agreement does not waive statutory rights and that a Section 6 extension does not end a Section 18 claim. What Bengaluru buyers should do when possession is late.
On 11 July 2022, a couple signed an agreement for flat C-1204 at Nikoo Homes IV in Chokkanahalli, Yelahanka, priced at Rs 1,03,97,884, with possession promised on or before 31 July 2025. The date passed. The developer pointed to ground-rent issues, the reconstitution of BBMP under the Greater Bengaluru Authority and a force majeure clause in its standard agreement. The Karnataka Real Estate Regulatory Authority was not persuaded.
The short answer. As reported by LiveLaw, K-RERA Chairman Rakesh Singh held in Complaint No. 01520/2025 that buyers "cannot be presumed to have voluntarily waived or surrendered their statutory rights" by signing a standard-form agreement, and directed Bharathiya Urban Private Limited to pay Rs 4,95,468 as delay interest at SBI MCLR plus 2 percent for 31 July 2025 to 17 January 2026, within 60 days. The trade-off: the award covers about five and a half months of delay; buyers whose builders cite force majeure still need to show, as here, that the delay came from the promoter's own deviations.
What did K-RERA decide in the Nikoo Homes IV case?
It awarded delay interest and rejected the developer's defences. LiveLaw reports that the developer said construction was completed in April 2025 and that it applied to BBMP for an occupancy certificate on 3 June 2025 after obtaining a fire NOC, blaming ground rent, the BBMP reconstitution and other circumstances beyond its control.
K-RERA found that obtaining the occupancy certificate on time was the promoter's obligation, and the order records that the Bangalore North City Corporation issued the certificate only after imposing a compounding fee for a deviation in construction. It attributed the delay to promoter-caused deviations and alterations rather than force majeure, according to the report.
Possession was not handed over by 31 July 2025 and was still pending at the end of November 2025; the developer later told K-RERA that possession was handed over in January 2026. The interest award runs from 31 July 2025 to 17 January 2026.
Can a standard-form agreement take away your right to delay interest?
Not in K-RERA's view in this case. LiveLaw quotes the order as saying that a standard-form clause "cannot operate to defeat the statutory protection" under RERA, and that buyers "cannot be presumed to have voluntarily waived or surrendered their statutory rights" by signing such an agreement.
The statutory protection is in Section 18(1) of the Real Estate (Regulation and Development) Act, 2016. Where the promoter fails to complete or is unable to give possession in accordance with the agreement for sale, it is liable on demand to return the amount received with interest if the allottee withdraws; and where the allottee does not intend to withdraw, the promoter shall pay interest for every month of delay till possession, at the prescribed rate.
The Act also expects the agreement itself to follow a set pattern. Section 13(2) says the agreement for sale shall be in such form as may be prescribed and shall specify, among other things, the date on which possession is to be handed over and the rates of interest payable by the promoter to the allottee and the allottee to the promoter in case of default. A builder's template sits inside that framework, not above it.
For buyers, the practical meaning is that the fine print of a builder's template is not the last word on your statutory rights. It still matters, because force majeure and possession clauses shape the facts, but the order treats the statute as the floor.
Does a RERA registration extension cancel a buyer's delay claim?
Not according to this order. K-RERA held, as reported, that an extension of project registration under Section 6 does not extinguish the allottee's right to compensation under Section 18.
Section 6 of the Act lets the Authority extend a registration due to force majeure on the promoter's application, with extensions capped at one year in aggregate. That is a change to the project's registration on the regulator's record. The buyer's claim under Section 18 is measured against the possession date in the agreement for sale.
This point matters right now. Regulators have granted blanket extensions this year citing the West Asia situation, and builders may point to them. Our explainer on the RERA declared completion date versus your agreement's possession date sets out why the two dates can differ.
| Issue | Developer's position, as reported | K-RERA's finding, as reported |
|---|---|---|
| Standard-form agreement | Buyer accepted its terms | Buyers not presumed to waive statutory rights |
| Force majeure clause | Covered approval delays | Not a blanket defence where promoter's acts caused delay |
| Occupancy certificate | Applied on 3 June 2025 | Issued only after a compounding fee for a deviation |
| Registration extension | Relied on for more time | Section 6 extension does not extinguish Section 18 rights |
| Relief | No interest payable | Rs 4,95,468 at SBI MCLR plus 2 percent within 60 days |
When does force majeure fail as a defence?
When the promoter's own conduct caused the delay. K-RERA held, as reported, that force majeure cannot be a blanket defence where the promoter's acts, omissions, deviations or non-compliances caused the delay, wholly or partly.
The Act's own definition is narrow. The explanation to Section 6 defines force majeure as a case of war, flood, drought, fire, cyclone, earthquake or any other calamity caused by nature affecting the regular development of the project. Delays in a builder's own approvals, caused by its own deviations, sit uneasily with that list.
The Nikoo Homes IV facts show how a buyer can test a force majeure claim. The occupancy certificate came only after a compounding fee for a deviation, which points to a cause within the builder's control. Ask for the dates of each approval application and any compounding or penalty orders, because they often reveal why a certificate was delayed.
Why did plan deviations matter here?
Because deviations both delayed the certificate and raised consent issues. The order, as reported, referred to Section 14, which bars the promoter from making additions or alterations to sanctioned plans, layouts or agreed specifications without the required allottee consent.
Section 14(2) of the Act opens with "Notwithstanding anything contained in any law, contract or agreement", and says that after sanctioned plans and specifications are disclosed, the promoter shall not make additions and alterations to the flat without the previous consent of that person, and other alterations to the building or common areas without the previous written consent of at least two-thirds of the allottees.
For buyers, a compounding fee or regularisation order is a signal worth investigating. It may mean the building on site differs from the sanctioned plan you were shown, which can affect both your delay claim and what you are actually buying.
What should Bengaluru buyers do if possession is late?
Pin down the dates, collect the approvals history and claim interest in writing. The checklist below follows the issues K-RERA examined.
- Note the possession date in your agreement for sale and keep a copy of the agreement and every payment receipt.
- Ask the developer in writing for the date it applied for the occupancy certificate and the date it was issued.
- Ask whether any compounding fee, penalty or regularisation order was imposed for deviations.
- Check the project's registration status and any extensions on the K-RERA portal.
- Read the force majeure clause in your agreement and compare the events claimed with what actually delayed the project.
- Write to the developer claiming interest for each month of delay under Section 18 and keep the acknowledgement.
- If there is no response, file a complaint with K-RERA attaching your agreement, receipts and correspondence.
Keep a parallel record of what the delay is costing you. Rent receipts, pre-EMI or EMI statements and any temporary accommodation costs are not part of a Section 18 interest calculation in themselves, but they help an adjudicating officer assess compensation if you pursue that route, and they keep your own decision-making grounded in real numbers.
If your builder cites a registration extension, our guide to force majeure registration extensions and delay covers how those extensions work.
How much interest might a delayed buyer recover?
It depends on the amount paid, the period and the rate. In this case, the K-RERA order calculates Rs 4,95,468 on Rs 96,69,999 paid up to the agreed possession date, with a further Rs 7,23,035 paid on 14 January 2026 counted separately, applying MCLR figures of 8.8 to 8.9 percent plus 2 percent for each month from 31 July 2025.
The rate in Karnataka orders is commonly expressed with reference to SBI's MCLR, which floats. If you are estimating a claim, apply the rate for each part of the period to the amounts you had actually paid by then, or ask a lawyer or chartered accountant to prepare the calculation for your complaint.
Remember the deadline in the order. Here the developer had 60 days to pay. If an award is not paid on time, Section 40(1) of the Act makes unpaid interest, penalty or compensation recoverable as arrears of land revenue.
Frequently asked questions
What did K-RERA award in the Nikoo Homes IV case?
As reported by LiveLaw, K-RERA directed Bharathiya Urban Private Limited to pay Rs 4,95,468 as delay interest at SBI MCLR plus 2 percent for the period from 31 July 2025 to 17 January 2026, within 60 days, to the buyers of flat C-1204 at Nikoo Homes IV in Yelahanka.
Can a standard-form agreement waive delay interest?
K-RERA held in this case that buyers cannot be presumed to have voluntarily waived or surrendered their statutory rights by signing a standard-form agreement, and that such a clause cannot operate to defeat RERA's statutory protection, as reported by LiveLaw. Section 18(1) provides interest for every month of delay.
Does a Section 6 extension end a buyer's delay claim?
According to LiveLaw's report of the order, K-RERA held that an extension of project registration under Section 6 does not extinguish the allottee's right to compensation under Section 18. Section 6 itself deals with extending a project's registration on the promoter's application due to force majeure.
When can a builder rely on force majeure?
K-RERA held, as reported, that force majeure cannot be a blanket defence where the promoter's acts, omissions, deviations or non-compliances caused the delay. The explanation to Section 6 of the RERA Act defines force majeure as war, flood, drought, fire, cyclone, earthquake or other natural calamity.
Last updated 2026-10-22. PropNewz Team.
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