Possession on Time but Promises Broken? RERA Section 18(3) Compensation for Bengaluru Buyers
A Bengaluru buyer's guide to RERA Section 18(3): compensation for a builder's failure to meet obligations beyond delay and title, which duties can ground a claim, how the adjudicating officer decides, the Section 72 factors, and a seven step claim plan.
A Bengaluru buyer gets the keys to a flat on time. There is no delay to complain about. But three months later the builder still has not shared the occupancy certificate, the promised maintenance arrangements look nothing like the agreement, and requests for the common area documents go unanswered. When the buyer reads up on RERA, much of what the buyer finds is about late possession and refunds. Is there anything in the Act for a buyer whose problem is not delay at all? There is, and it is one short sub-section that is easy to skip past: Section 18(3).
The short answer. Section 18(3) of the RERA Act says that if the promoter fails to discharge any other obligation imposed on it under the Act, the rules or regulations, or the terms and conditions of the agreement for sale, it is liable to pay compensation to the allottees in the manner provided under the Act. Claims for compensation under Section 18 are adjudged by an adjudicating officer, who is or has been a District Judge, and who must weigh the promoter's disproportionate gain, the buyer's loss and whether the default is repetitive. The trade-off: Section 18(3) is broad enough to cover breaches beyond delay, but compensation is not automatic, so the buyer has to show the obligation, the breach and the loss.
What does Section 18(3) actually say?
It is a catch-all for the builder's other obligations. Section 18(3) of the Real Estate (Regulation and Development) Act, 2016 reads: if the promoter fails to discharge any other obligations imposed on him under this Act or the rules or regulations made thereunder or in accordance with the terms and conditions of the agreement for sale, he shall be liable to pay such compensation to the allottees, in the manner as provided under this Act.
The word "other" is the key. The first two parts of Section 18 deal with specific situations. Section 18(1) covers failure to complete or give possession in accordance with the agreement for sale or by the date specified, or discontinuance of business because of suspension or revocation of registration or any other reason, with a refund with interest and compensation if the allottee withdraws, or monthly interest for delay if the allottee stays. Section 18(2) covers loss due to defective title of the land, and says that claim is not barred by limitation under any law. Section 18(3) then covers everything else the promoter is obliged to do.
Which obligations could a Section 18(3) claim rest on?
Any obligation the Act, the rules, the regulations or your agreement places on the promoter. The Act itself lists many. Some that matter after handover include:
Section 11(4)(b), which makes the promoter responsible for obtaining the completion certificate or occupancy certificate, or both, from the competent authority and making it available to the allottees individually or to the association. Section 11(4)(d), which makes the promoter responsible for providing and maintaining essential services, on reasonable charges, until the association of allottees takes over maintenance. Section 17(1), which requires the promoter to execute a registered conveyance deed and hand over the common areas, and Section 17(2), which requires the necessary documents and plans, including of common areas, to be handed over to the association.
Two more duties matter after handover. Section 11(4)(g) says the promoter shall pay all outgoings it collected from the allottees, such as municipal taxes, water and electricity charges and maintenance charges, until it transfers physical possession, and remains liable even after the transfer if it failed to pay them. On the buyer's side, Section 19(5) says the allottee is entitled to have the necessary documents and plans, including those of common areas, after the promoter hands over physical possession. A builder that withholds those documents is failing an obligation the Act recognises.
The agreement for sale is just as important. Section 18(3) expressly covers obligations "in accordance with the terms and conditions of the agreement for sale". A promised specification, a facility the agreement describes or a payment term the builder has not honoured can all be the starting point of a claim. Our explainer on compensation for defective title under Section 18(2) covers the neighbouring provision.
Who decides the compensation?
An 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 as adjudicating officers, to hold an inquiry after giving any person concerned a reasonable opportunity of being heard.
The Act asks for speed. Section 71(2) says the application for adjudging compensation shall be dealt with as expeditiously as possible and disposed of within sixty days from the date of receipt, and if it cannot be, the adjudicating officer must record reasons in writing. Section 71(3) gives the officer power to summon witnesses and documents and, if satisfied that a person failed to comply with any of those sections, to direct payment of such compensation or interest as the officer thinks fit.
The Ministry of Housing and Urban Affairs' FAQs on RERA, dated July 2025, describe the adjudicating officer as a quasi-judicial person mandated to adjudicate disputes arising under Sections 12, 14, 18 and 19, who shall be a person who is or has been a District Judge. Our guide to the adjudicating officer, consumer forum and civil court routes compares the forums.
How is the amount of compensation worked out?
By four factors set out in the Act. 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, wherever quantifiable, made as a result of the default; 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.
The MoHUA FAQs list the same factors. For a buyer, the practical lesson is that evidence of loss matters. If the builder's failure to share an occupancy certificate delayed a resale or a loan, or a missing facility forced you to pay for an alternative, keep the bills, letters and dates that show it.
How is Section 18(3) different from the other compensation routes?
It fills the gaps between them. Section 12 deals with loss from incorrect or false statements in an advertisement, prospectus or model apartment. Section 14(3) deals with structural defects and defects in workmanship, quality or provision of services brought to the promoter's notice within five years of handing over possession, which the promoter must rectify within thirty days, failing which the allottees are entitled to appropriate compensation. Section 18(1) and 18(2) cover delay and title. Section 18(3) covers the remaining obligations.
The complaint itself goes through the Act's general provision. Section 31(1) says any aggrieved person may file a complaint with the authority or the adjudicating officer, as the case may be, for any violation or contravention of the Act, the rules or the regulations against any promoter, allottee or real estate agent, and the explanation includes an association of allottees.
How do the compensation provisions compare?
This table sets out the Act's main compensation routes for a buyer.
| Provision | What triggers it | What the buyer can claim |
|---|---|---|
| Section 12 | Incorrect or false statement in an advertisement, prospectus or model apartment | Compensation; on withdrawal, entire investment with interest and compensation |
| Section 14(3) | Defect notified within five years of possession and not fixed within thirty days | Appropriate compensation |
| Section 18(1) | Failure to complete or give possession as agreed, or discontinuance of business | Refund with interest and compensation, or monthly interest for delay |
| Section 18(2) | Loss due to defective title of the land | Compensation, not barred by limitation |
| Section 18(3) | Failure to discharge any other obligation under the Act, rules, regulations or agreement | Compensation as provided under the Act |
How should you build a Section 18(3) claim?
Work through these steps before you file.
- Identify the exact obligation, with the section, rule or agreement clause.
- Collect the agreement for sale, allotment letter and brochure you relied on.
- Write to the builder asking it to perform the obligation by a set date.
- Keep every reply, email and message with dates.
- Document your loss with bills, quotes or letters from lenders.
- Note whether the same failure affects other buyers in the project.
- File before the adjudicating officer with the evidence in order.
Point six is not a formality. Section 72 lists the repetitive nature of the default among the factors, and Section 31(1) allows an association of allottees to complain. If the occupancy certificate, a facility or the common area documents are missing for everyone, a joint complaint through the association is also open. For a large project such as the one on our page for Prestige Falcon City in Konanakunte, the project's K-RERA number is the starting point for any complaint.
Frequently asked questions
What does Section 18(3) of RERA cover?
Section 18(3) of the RERA Act says that if the promoter fails to discharge any other obligation imposed on it under the Act, the rules or regulations, or the terms and conditions of the agreement for sale, it is liable to pay compensation to the allottees in the manner provided under the Act. It covers breaches beyond delay and title.
Who decides compensation under Section 18 of RERA?
An adjudicating officer. Section 71(1) says the authority appoints one or more judicial officers who are or have been District Judges to adjudge compensation under Sections 12, 14, 18 and 19, after an inquiry that gives the parties a reasonable opportunity of being heard. Section 71(2) asks for disposal within sixty days.
How does the adjudicating officer decide the amount?
Section 72 of the RERA Act says the adjudicating officer must have due regard to the disproportionate gain or unfair advantage made from the default, wherever quantifiable, the loss caused by the default, the repetitive nature of the default, and other factors the officer considers necessary in furtherance of justice.
Can a buyer claim compensation if possession was on time?
Yes, if another obligation was breached. Section 18(3) applies where the promoter fails to discharge any other obligation under the Act, rules, regulations or agreement for sale, such as making the occupancy certificate available under Section 11(4)(b) or handing over common area documents under Section 17(2). The buyer must show the breach and the loss.
Last updated 2026-10-21. PropNewz Team.
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