Delayed Possession in Hyderabad: Refund or Monthly Interest Under RERA Section 18

The possession date printed in a Hyderabad buyer's agreement is usually a single line on one page. When that date passes and the keys do not arrive, the same buyer often discovers that there are two very different paths available, and that choosing between them early matters. One path ends the relationship with the promoter and asks for the money back. The other keeps the flat and asks to be paid for the wait.

The Ministry of Housing and Urban Affairs set out how both paths work in its FAQs on the Real Estate (Regulation and Development) Act, 2016, dated July 2025. This guide reads those answers from the point of view of a Telangana buyer whose project is running late, and lists the documents to gather before deciding.

The short answer. MoHUA's FAQ says that under Section 18, if the promoter fails to hand over possession, the allottee "has the right to withdraw from the project and claim a full refund along with interest and compensation", or, if the allottee stays, "is entitled to interest for every month of delay until possession is handed over." The interest rate is the same whichever side defaults and is fixed by the state's Rules. Complaints go to the Regulatory Authority, which should endeavour to decide within sixty days. The trade-off: a refund returns your money but gives up the flat and the price you locked in, while staying keeps the flat but ties you to a project that is already late.

What does Section 18 give a buyer when possession is delayed?

It gives a choice. In answer to the question on return of amount and compensation, the FAQ explains that Section 18 covers "various situations in which promoter fails to handover the possession of booked unit to the allottee." In such a case, it says, the allottee has the right to withdraw and claim a full refund with interest and compensation.

Alternatively, the FAQ says, if the allottee "chooses to stay with the project, he is entitled to interest for every month of delay until possession is handed over and also for compensation in certain circumstances as mentioned in the aforesaid section." The FAQ on allottees' rights under Section 19 repeats the same two options, describing them as the right to "either withdraw from the project and claim a full refund with interest and compensation, or continue with the project and receive monthly interest for the period of delay."

What interest rate applies to delay, and who sets it?

The state does. The FAQ states that "As per the Explanation to section 2(za) the rate of interest payable by either the promoter or the allottee shall be the same. The rate of interest is required to be specified by the appropriate Government in the Rules." For a Hyderabad project, the appropriate Government is the Telangana State Government, since the FAQ's answer on Section 2(g) says that for a State it is "the State Government".

The symmetry is worth noting. The same rule that lets you claim interest for a delayed handover also applies if you pay an instalment late. The FAQ on allottees' duties lists "liability towards interest for delay in payment" among them. Before filing anything, check your own payment record so that a counter-claim does not reduce what you receive. The current Telangana rate should be checked in the state Rules published on the TG RERA website, rera.telangana.gov.in.

Does a resale buyer have the same rights?

The definition covers them. The FAQ answers the question "Does the term allottee include secondary sales?" by saying that "As per section 2(d) an allottee includes a person who acquires the said apartment / plot through transfer or sale, but does not include a person to whom such plot, apartment is given on rent." A Hyderabad buyer who took over a booking from an original allottee therefore falls within the definition. A tenant does not.

This matters in projects where units have changed hands before completion. If you are evaluating an under-construction flat in a project such as My Home Vyoma in Nanakramguda, keep the original agreement, the transfer documents and the promoter's acknowledgement of the transfer together, because your claim will rest on all three.

How can a project deadline be extended?

Through an extension of registration, which the FAQ says Section 6 allows in two situations. The FAQ says registration validity is "the period declared by the promoter under section 4(2)(l)(C)" when applying, within which it would complete the project. Under Section 6, registration can be extended in case of force majeure, and also "under reasonable circumstances, without the fault of the promoter, which shall not be more than a maximum period of 1 year." The FAQ quotes the Act's definition of 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 real estate project."

An extension of registration is a regulatory step, recorded by the Authority. Buyers should check whether one was granted, and on what ground, before assuming the promoter is in default. Our earlier guide to phased projects in Hyderabad explains why each phase can carry its own registration and timeline.

Where does a Hyderabad buyer file the complaint?

With the Regulatory Authority or the Adjudicating Officer. The FAQ states that "Section 31 of the Act provides for filing of complaint by an aggrieved with the Regulatory Authority or Adjudicating Officer, as the case may be," and that the form, manner and fees "are to be specified by Rules to be made by the appropriate Government."

The Adjudicating Officer handles compensation. The FAQ says this officer "is mandated to adjudicate on disputes arising under section 12, 14, 18 and section 19" and "shall be a person who is or has been a District Judge." While deciding, the officer has regard to "the amount of disproportionate gain or unfair advantage, the amount of loss, repetitive nature of the default and such other factors" considered necessary.

On timing, the FAQ says the Authority "should endeavour to dispose of the questions / complaints as expeditiously as possible but not later than sixty days from the date of filing", and that where it cannot, it must record its reasons. Appeals go to the Appellate Tribunal, which the FAQ says should also endeavour to decide within sixty days, and from there "Any person aggrieved by the decision or order of the Appellate Tribunal can file and appeal with the High Court."

Can a buyer go to a consumer forum instead?

Yes, but not to both for the same dispute. The FAQ says that under Section 79, civil courts are barred from matters the Authority, Adjudicating Officer or Tribunal can determine, but "the consumer forums (National, State or District) have not been barred." It adds that the Section 71 proviso lets a complainant withdraw a complaint on matters under sections 12, 14, 18 and 19 from the consumer forum and file it with the Adjudicating Officer.

The FAQ is direct on duplication: "The laws of the country do not permit forum shopping, thus, an aggrieved can only approach one of the two for disputes over the same matter." Pick a forum with care, ideally after legal advice.

If the promoter does not pay after an order, the FAQ says that if a promoter, allottee or agent "fails to pay any interest, penalty, or compensation imposed by the adjudicating officer, Regulatory Authority, or Appellate Authority under the RERA Act, the amount becomes recoverable as an arrear of land revenue." It adds that orders not followed "can be enforced through prescribed legal procedures." Separately, under Section 63, a promoter who fails to comply with the Authority's orders is liable to a daily penalty that may cumulatively extend up to five percent of the estimated cost of the project. For how a recovery certificate worked in one recent case, see our report on a K-RERA refund recovery before the Karnataka High Court.

What should a buyer gather before choosing refund or interest?

1. Your registered agreement for sale, with the possession date and the payment schedule.
2. Every payment receipt and bank statement entry, to show you are not in default yourself.
3. The project's registration details and any extension recorded by TG RERA, with the stated ground.
4. Transfer documents and the promoter's acknowledgement, if you bought the booking from another allottee.
5. Written communications from the promoter about revised timelines or reasons for delay.
6. The current interest rate under the Telangana Rules, checked on the TG RERA website.
7. A decision on forum, either RERA or a consumer forum, since the FAQ says you can approach only one for the same matter.

Frequently asked questions

What are my options under RERA if my Hyderabad flat is delayed?

MoHUA's RERA FAQ says Section 18 lets an allottee withdraw from the project and claim a full refund with interest and compensation. Alternatively, an allottee who chooses to stay is entitled to interest for every month of delay until possession is handed over, and to compensation in certain circumstances set out in the section.

Who decides the interest rate for delayed possession?

According to MoHUA's FAQ, the Explanation to Section 2(za) makes the interest rate payable by the promoter and by the allottee the same, and the rate is specified by the appropriate Government in its Rules. For a Telangana project, buyers should check the rate in the state Rules on the TG RERA website.

Is a buyer who purchased a booking from another person an allottee?

MoHUA's FAQ says that under Section 2(d) an allottee includes a person who acquires the apartment or plot through transfer or sale, but not a person to whom it is given on rent. A resale buyer of an under-construction booking should keep the original agreement and the transfer papers together.

Can I file a RERA complaint and a consumer case on the same delay?

No. MoHUA's FAQ states that the laws do not permit forum shopping, so an aggrieved person can approach only one of the two for disputes over the same matter. Consumer forums are not barred, and a complaint on sections 12, 14, 18 or 19 can be moved to the Adjudicating Officer.

This article explains the Ministry of Housing and Urban Affairs' general FAQs for information only and is not legal advice. The FAQ itself notes it is not a final interpretation of the Act.

Last updated 2026-11-09. PropNewz Team.