Flat Not Like the Model Flat? What RERA Section 12 Means for Bengaluru Buyers
A Bengaluru buyer's guide to RERA Section 12: compensation when a model flat, advert or prospectus was incorrect or false, the right to withdraw with a full refund and interest, what counts as an advertisement, and what to record on a sample flat visit.
A Bengaluru couple walks through a sample flat on a Saturday afternoon. The kitchen has a full-height window, the balcony looks generous and the bathroom fittings are a brand they recognise. They pay a booking amount that evening. Two years later, the flat they are shown at handover has a smaller window, a narrower balcony and different fittings. The sales team says the sample flat was "only indicative". The couple want to know whether that settles it. The RERA Act has a provision that speaks directly to this situation, and it names the model apartment alongside the advertisement and the prospectus.
The short answer. Section 12 of the RERA Act says that where any person makes an advance or a deposit on the basis of information in a notice, advertisement or prospectus, or on the basis of any model apartment, plot or building, and sustains loss or damage because of any incorrect or false statement included in it, the promoter shall compensate that person in the manner provided under the Act. Its proviso adds that a person who intends to withdraw from the project shall be returned their entire investment with interest at the prescribed rate, plus compensation. The trade-off: the right is strong but evidence-driven, so it depends on showing what the model flat or advert actually represented and how the flat you got differs, which means recording it at the time you book.
What does Section 12 say about model flats?
It puts the model flat on the same footing as the advert. Section 12 of the Real Estate (Regulation and Development) Act, 2016 says: "Where any person makes an advance or a deposit on the basis of the information contained in the notice advertisement or prospectus, or on the basis of any model apartment, plot or building, as the case may be, and sustains any loss or damage by reason of any incorrect, false statement included therein, he shall be compensated by the promoter in the manner as provided under this Act".
Three conditions sit in that wording. You made an advance or deposit. You did so on the basis of the advert, the prospectus or the model apartment. And you sustained loss or damage because of an incorrect or false statement included in it. The section's heading in the Act describes these as obligations of the promoter regarding veracity of the advertisement or prospectus.
The Ministry of Housing and Urban Affairs' FAQs on RERA, dated July 2025, summarise it plainly: under Section 12, the promoter is responsible for the veracity of all information in the advertisement and the prospectus, and where any person sustains a loss due to false information in them, the promoter is liable to make good that loss.
Can you withdraw from the project?
The proviso gives that option. It says that if the person affected by the incorrect or false statement in the notice, advertisement or prospectus, or the model apartment, plot or building, "intends to withdraw from the proposed project, he shall be returned his entire investment along with interest at such rate as may be prescribed and the compensation in the manner provided under this Act".
So the Act offers two paths. You can stay in the project and seek compensation for the loss, or you can withdraw and seek the return of your entire investment with interest at the prescribed rate, together with compensation. Which path suits you depends on how serious the difference is and how far the project has progressed, and it is worth taking advice before you decide.
The interest rate is set by the rules. The Act says "at such rate as may be prescribed", so for a Bengaluru project, check the rate in the Karnataka rules that apply when you make the claim.
What counts as an advertisement under RERA?
More than a newspaper ad. Section 2(b) defines "advertisement" as any document described or issued as advertisement through any medium, and it includes any notice, circular or other documents or publicity in any form, informing persons about a real estate project, or offering for sale a plot, building or apartment, or inviting persons to purchase it or to make advances or deposits for such purposes.
That definition is wide enough to take in brochures, hoardings and digital publicity. Section 11(2) adds that the advertisement or prospectus issued or published by the promoter shall mention prominently the website address of the authority, where all details of the registered project have been entered, and include the registration number obtained from the authority. Our guide to RERA rules for property adverts sent by SMS and email covers how that applies to messages on your phone.
How does this connect with the sanctioned plans?
The plans are the baseline. Section 14(1) says the proposed project shall be developed and completed by the promoter in accordance with the sanctioned plans, layout plans and specifications as approved by the competent authorities. Section 11(3) says that at the time of booking and issue of the allotment letter, the promoter shall make available to the allottee the sanctioned plans, layout plans and specifications approved by the competent authority, by display at the site or another place specified by regulations, and the stage-wise time schedule of completion.
That gives you something to compare the model flat against. If the sample flat shows a layout, a window or a balcony that differs from the sanctioned plan, ask which one the builder is committing to, and get the answer in writing before you pay. The agreement for sale is the next anchor: Section 13(2) says it shall specify the particulars of development of the project, including the construction of building and apartments along with specifications and internal development works.
Misleading publicity also counts against the builder's registration. Section 7(1)(c) lets the authority revoke a registration if the promoter is involved in any kind of unfair practice or irregularities. Its explanation includes making any statement, in writing or by visible representation, which falsely represents that the services are of a particular standard or grade, or makes a false or misleading representation concerning the services, and permitting the publication of an advertisement or prospectus of services that are not intended to be offered.
Where do you make a Section 12 claim?
Before the adjudicating officer. Section 71(1) says that for the purpose of adjudging compensation under Sections 12, 14, 18 and 19, the authority shall appoint, in consultation with the appropriate government, one or more judicial officers who are or have been District Judges to be adjudicating officers, holding an inquiry after giving any person concerned a reasonable opportunity of being heard.
The officer weighs specific factors. Section 72 says that while adjudging the quantum of compensation or interest under Section 71, the adjudicating officer shall have due regard to the amount of disproportionate gain or unfair advantage made as a result of the default, wherever quantifiable, the amount of loss caused as a result of the default, the repetitive nature of the default, and such other factors as the officer considers necessary in furtherance of justice.
If you have already gone to a consumer forum, there is a bridge. The MoHUA FAQs say the proviso to Section 71 permits a complainant to withdraw a complaint on matters under Sections 12, 14, 18 and 19 from the consumer forum and file it with the adjudicating officer. They also say an aggrieved person can approach only one of the two for the same dispute. Our explainer on the adjudicating officer, the consumer forum and the civil court compares the routes.
How do the routes under Section 12 compare?
This table sets out the two paths and the provisions that support them.
| Point | Stay in the project | Withdraw from the project |
|---|---|---|
| Provision | Section 12 | Proviso to Section 12 |
| What you seek | Compensation for loss or damage | Entire investment back, with interest and compensation |
| Condition | Advance or deposit made on the basis of the advert or model, and loss suffered | Same, plus an intention to withdraw |
| Who decides | The adjudicating officer under Section 71 | The adjudicating officer under Section 71 |
| Factors weighed | Gain, loss, repetition and other factors under Section 72 | Gain, loss, repetition and other factors under Section 72 |
What should you record when you visit a model flat?
Treat the visit as evidence gathering.
- Photograph every room, window, balcony and fitting in the model flat.
- Note the date of the visit and the name of the person who showed it.
- Ask in writing whether the model flat matches your unit's sanctioned plan.
- Keep the brochure, price sheet and any digital adverts you relied on.
- Check that the adverts show the K-RERA number and website address.
- Compare the specifications in the agreement for sale with the model flat.
- At handover, record every difference before you sign anything.
Start with the registration record. For a project such as the one on our page for Mahendra Arto Helix in Electronic City, the K-RERA number lets you compare the registered plans with what the sales office shows.
Frequently asked questions
Is a builder responsible if the flat differs from the model flat?
Section 12 of the RERA Act says that where a person makes an advance or deposit on the basis of any model apartment, plot or building and sustains loss or damage because of an incorrect or false statement included in it, the promoter shall compensate that person in the manner provided under the Act.
Can I get my money back if the model flat was misleading?
The proviso to Section 12 of the RERA Act says that a person affected by an incorrect or false statement in an advertisement, prospectus or model apartment who intends to withdraw from the project shall be returned their entire investment with interest at the prescribed rate, plus compensation under the Act.
Where do I file a claim about a misleading model flat?
Section 71(1) of the RERA Act says compensation under Sections 12, 14, 18 and 19 is adjudged by an adjudicating officer, a judicial officer who is or has been a District Judge. Under Section 72, the officer weighs factors such as the gain made, the loss caused and repetition of the default.
Does a brochure count as an advertisement under RERA?
Section 2(b) of the RERA Act defines an advertisement as any document issued as advertisement through any medium, including any notice, circular or other publicity in any form that informs people about a project, offers units for sale or invites people to buy or make advances or deposits.
Last updated 2026-10-21. PropNewz Team.
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