TG RERA's Own FAQ: What Late Payment Costs a Hyderabad Buyer, and What the Builder Owes Back
Telangana RERA's published FAQ sets the interest a Hyderabad flat or plot buyer pays on a late instalment at SBI's highest MCLR plus 2 per cent, which works out to 10.95 per cent on SBI's 15 October 2026 rates. This guide runs the numbers and lists the promoter's matching duties on delay interest, association formation and conveyance.
8.95 per cent. That is the highest Marginal Cost of Funds based Lending Rate on the State Bank of India's MCLR table effective 15 October 2026, set against its three-year tenor. For a Hyderabad flat or plot buyer it matters more than it looks, because Telangana RERA's published FAQ ties the interest a buyer pays on a late instalment to exactly this number, plus 2 per cent. On today's table that is 10.95 per cent a year.
Most buyers read the payment schedule in their agreement and stop there. The FAQ that TG RERA links from its website, dated 7 July 2023, is worth reading alongside it, because it answers in plain language what you owe if you are late, what the promoter owes if the promoter is late, and the deadlines the promoter carries after you book.
The short answer. TG RERA's FAQ says a buyer who pays an instalment late owes interest at SBI's highest MCLR plus 2 per cent, under Rule 15. With SBI's highest listed MCLR at 8.95 per cent from 15 October 2026, that is 10.95 per cent a year, or about Rs 18,000 on a Rs 10 lakh instalment paid 60 days late in our simple-interest example. The same FAQ says the promoter must pay delay interest for every month of late possession, enable an association within three months of 51 per cent bookings, and execute a conveyance deed within three months of the occupancy certificate or of 51 per cent of buyers paying in full, whichever is earlier. The trade-off: these are protections you usually enforce yourself, by complaint, if the promoter does not comply, so the paperwork you keep from day one decides how quickly you can use them.
What interest does a buyer pay on a late instalment in Telangana?
The FAQ's answer is direct: the allottee pays the promoter interest equal to the State Bank of India highest Marginal Cost of Lending Rate plus 2 per cent, on all amounts that become due and payable under the agreement, from the date the amount is payable. The FAQ cites Rule 15 for this.
SBI publishes its MCLR by tenor. On the table effective 15 October 2026, the rates run from 7.85 per cent for overnight and one month, to 8.40 per cent for three months, 8.75 per cent for six months, 8.85 per cent for one year, 8.90 per cent for two years and 8.95 per cent for three years. The highest listed figure is therefore 8.95 per cent, which gives 10.95 per cent once the 2 per cent is added.
SBI revises its MCLR; the 15 October 2026 table itself raised the three-month to three-year rates. The FAQ does not set out a calculation method, so the arithmetic below is our illustration, not TG RERA's.
How much does a late instalment actually cost at 10.95 per cent?
At 10.95 per cent a year, calculated as simple interest on a 365-day year, a Rs 10 lakh instalment costs about Rs 9,000 for 30 days of delay, Rs 18,000 for 60 days and Rs 27,000 for 90 days. On a Rs 5 lakh instalment the figures halve: Rs 4,500, Rs 9,000 and Rs 13,500.
These are illustrations. Your agreement for sale may compute interest differently, for example monthly, and it states the rate actually applied.
| Item | What TG RERA's FAQ says | What to check |
|---|---|---|
| Buyer's late-payment interest | SBI highest MCLR plus 2 per cent, under Rule 15 | SBI's MCLR table on the due date; 10.95 per cent on the 15 October 2026 rates |
| Promoter's delay in possession | Interest for every month of delay until handover, under section 18 | The completion date declared at registration and in your agreement |
| Association of allottees | Promoter enables formation within three months of 51 per cent bookings | How many units in your building or wing are booked |
| Conveyance deed | Within three months of the occupancy certificate or of 51 per cent paying full consideration, whichever is earlier, under section 17 | The occupancy certificate date and payment status of buyers |
| Appeal against an order | To the Appellate Tribunal within sixty days, under section 43(5) | The date of the TG RERA order you want to challenge |
What does the promoter owe if possession is late?
The FAQ says that if the promoter fails to keep to the time schedule for completing the project and handing over the apartment or plot, the promoter pays the allottee who does not intend to withdraw interest as specified in the Rule, on all amounts paid, for every month of delay, until possession is handed over. It cites section 18 of the RERA Act.
On whether this is automatic, the FAQ says the interest is in accordance with the agreement and should be paid automatically, and that the buyer may have to file a complaint with TG RERA if there is a grievance or the promoter fails to comply.
We covered the choice between withdrawing with a refund and staying on for monthly interest in our earlier guide to section 18 refunds and delay interest for Hyderabad buyers.
When must the builder form an association and hand over the conveyance?
The FAQ answers both. On the association, it says the promoter has to enable formation of a legal entity such as an association or federation within three months from the date on which 51 per cent of the total number of purchasers in the building or wing have booked, and it ties this to section 11(4)(e) of the Act.
On conveyance, the FAQ says the promoter shall execute a registered conveyance deed in favour of the allottee within three months from the date of issue of the occupancy certificate, or from the date on which 51 per cent of the purchasers in the building or wing have paid the full consideration, whichever is earlier. It cites section 17.
How do I check that a project is registered before I pay?
The FAQ says a flat or plot buyer should visit the TG RERA website, which displays all registered projects, and that any advertisement marketing flats or plots must carry the TG RERA registration number, under section 11(2). The TG RERA home page links a search of registered projects and agents and, when we checked on 12 November 2026, showed tiles for 10,408 registered projects and 4,729 registered agents.
The FAQ also sets the threshold for registration. A project on land of more than 500 square metres needs registration even if it has fewer than eight apartments, and a project with more than eight apartments needs registration even if the land is under 500 square metres. It adds that if a promoter buys adjoining land that was not part of the registered project, that land has to be separately registered.
When you search, match the registration number in the advertisement with the project name, promoter name and address in the record, and download the documents filed. If you are comparing a large project such as My Home Vyoma in Nanakramguda, run the same search on its registration number before treating any brochure claim as settled.
Can a real estate agent sign on the builder's behalf?
No, according to the FAQ. Its final question asks whether an agent is authorised to sign on behalf of the promoter or builder, and the answer given is no. The FAQ also says the promoter is responsible for the veracity of advertisements and prospectus under section 12, and that an agent is liable if the agent makes a false or misleading representation about the services the agent intends to offer.
Booking forms, allotment letters and agreements should carry the promoter's signature, not just a broker's. We set out what a TG RERA allotment letter should contain in our guide to the TG RERA proforma allotment letter.
Where do I complain, and how busy is TG RERA?
Complaints are filed online. The TG RERA home page links "Register Complaint" and "Make a Complaint" to its complaints portal. Its citizen guidelines say any aggrieved person may file a complaint about any registered real estate project for a violation of the Act, rules or regulations.
When we checked on 12 November 2026, the home page showed tiles for 3,093 complainants and 1,981 complainants' matters disposed. The FAQ adds that an appeal against an order of TG RERA or its adjudicating officer goes to the Appellate Tribunal within sixty days under section 43(5).
What should a Hyderabad buyer do before and after booking?
Use the FAQ as a checklist against your own paperwork. These seven steps keep you able to rely on it:
- Search the project on the TG RERA website and match the registration number in every advertisement with the name and promoter in the record.
- Check whether the project land exceeds 500 square metres or the project has more than eight apartments, and expect registration if either applies.
- Read the interest clause in your agreement and compare it with the SBI highest MCLR plus 2 per cent rule in the FAQ.
- Note SBI's MCLR table on each instalment due date, since 8.95 per cent was the highest figure from 15 October 2026.
- Keep every payment receipt, because delay interest under section 18 runs on all amounts paid.
- Track bookings in your building or wing so you know when the 51 per cent trigger for an association is crossed.
- Make sure every booking document carries the promoter's signature, since the FAQ says an agent cannot sign on the promoter's behalf.
Frequently asked questions
What interest does a Hyderabad buyer pay on a late instalment under TG RERA?
TG RERA's FAQ says the allottee pays interest equal to the State Bank of India highest Marginal Cost of Lending Rate plus 2 per cent, under Rule 15. With SBI's highest listed MCLR at 8.95 per cent from 15 October 2026, that is 10.95 per cent.
How much is 60 days of late-payment interest on a Rs 10 lakh instalment?
In our worked example, 10.95 per cent a year on Rs 10 lakh for 60 days, calculated as simple interest on a 365-day year, comes to Rs 18,000. Your agreement for sale decides the exact method and rate, so check its interest clause before relying on this figure.
When must the builder help form an association of allottees in Telangana?
According to TG RERA's FAQ, the promoter has to enable formation of an association or similar legal entity within three months from the date on which 51 per cent of allottees in the building or wing have booked, under section 11(4)(e) of the RERA Act.
Do I have to approach TG RERA to get delay interest from my builder?
TG RERA's FAQ says delay interest follows the agreement and should be paid automatically for every month of delay until possession. It adds that a buyer may have to file a complaint with TG RERA if the promoter does not comply. Complaints are filed online through the TG RERA complaints portal.
This article summarises TG RERA's published FAQ and SBI's published MCLR table for information. The interest figures are illustrative. It is not legal or financial advice; your agreement for sale and the Act and rules govern your rights.
Last updated 2026-11-12. PropNewz Team.
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