The Absolute Right to Withdraw Under Section 18
Under Section 18 of RERA, if a developer fails to complete or give possession of an apartment, plot, or building in accordance with the terms of the agreement for sale by the specified date, the allottee has two distinct choices:
1. Exit the Project: Demand full refund of all amounts paid, along with interest at the prescribed rate (SBI highest MCLR + 2%) from the date of each deposit until actual payment. 2. Remain in the Project: Demand monthly interest for every month of delay until possession is formally handed over with an Occupancy Certificate (OC).
Filing a Complaint Before RERA
Complaints for refund and delayed interest are filed online before the State RERA Authority in Form-N (or Form-M depending on jurisdiction). Unlike consumer commissions, RERA focuses exclusively on real estate compliance and project audit records.
Developers cannot unilaterally extend possession deadlines without statutory consent from two-thirds of allottees under Section 14 of RERA.
Enforcing RERA Orders via Recovery Warrants
If a developer fails to comply with a RERA refund order within the stipulated 45 or 60 days, the Authority issues a Recovery Certificate (RC) to the District Collector.
Under Section 40 of RERA, the District Collector is empowered to attach bank accounts, auction unsold developer inventory, and recover the funds as arrears of land revenue.
Practical Guidance & Conclusion
RERA provides time-bound statutory remedies for aggrieved homebuyers. Understanding your rights under Section 18 ensures that developers cannot hold your life savings hostage to indefinite construction delays.