Builder Delayed Possession of Your Pune Flat? Your Section 18 RERA Rights

Section 18 is the buyer's most powerful RERA remedy

If your builder has not handed over possession of your Pune flat by the date stated in the agreement for sale, your strongest statutory remedy is Section 18 of the Real Estate (Regulation and Development) Act, 2016 (RERA Act). It is short, clear and intentionally weighted in favour of the allottee.

This guide explains the two routes Section 18 opens, the interest rate that actually applies in Maharashtra, the forum where each claim is filed, and the boundary between the Authority and the Adjudicating Officer.

What Section 18 actually says

Section 18(1) provides that if the promoter fails to complete or is unable to give possession of the apartment in accordance with the terms of the agreement for sale by the date specified therein (or by the date stipulated in any extension under the Act), the allottee may:

• Withdraw from the project, in which case the promoter is liable to return the amount received with interest at such rate as may be prescribed, together with compensation in the manner provided under the Act; or
• Choose not to withdraw, in which case the promoter is liable to pay interest for every month of delay till handing over possession, at the prescribed rate.

The choice is the allottee's. The Authority has no discretion to refuse interest under Section 18(1)(b) where delay is established.

The Maharashtra interest rate

The "rate prescribed" for Maharashtra is set out in the Maharashtra Real Estate (Regulation and Development) Rules, 2017. The prescribed interest rate is the State Bank of India Marginal Cost of Lending Rate (MCLR) plus 2% — applied to the amount paid by the allottee from the date of payment till the date of refund (under the withdrawal route) or till the date of actual possession (under the continue route).

For a Pune buyer who paid ₹40 lakh in 2022 and has not received possession in 2026, this works out to a substantial sum — the interest accrues on every instalment from the date it was paid, not just from the breach date.

Two routes, two strategies

Route A — Withdraw and seek refund. Used when the buyer has lost confidence, the project has stalled materially, or finances have shifted. The buyer files before MahaRERA seeking refund of the entire amount paid plus interest at SBI MCLR + 2%. The promoter is liable to refund.

Route B — Continue and claim interest. Used when the project is genuinely going to complete (perhaps months late) and the buyer wants the flat. The buyer files before MahaRERA claiming interest at SBI MCLR + 2% for each month of delay, payable on possession or as ordered by the Authority. Interest may also be adjusted against future demands from the developer where the Authority so directs.

The withdrawal route is irrevocable in practice — once Section 18(1)(a) is invoked and a refund order issued, going back to wanting the flat is procedurally difficult. The continue route preserves the choice.

Where to file — Authority or Adjudicating Officer

A common confusion. Under several MahaRERA Appellate Tribunal decisions, the position is:

• Interest for delayed possession and refund of amount are within the jurisdiction of the Authority (MahaRERA itself), not the Adjudicating Officer.
• Compensation claims under Sections 12, 14, 18 and 19 are within the jurisdiction of the Adjudicating Officer under Sections 71 and 72 RERA Act.

For a typical Pune Section 18 claim, the allottee files before MahaRERA (the Authority) for refund-plus-interest or interest-for-delay. If additional compensation is sought (lost rent, mental harassment), a separate complaint may be filed before the Adjudicating Officer.

The agreement date — and what counts as "delay"

Delay is measured against the date specified in the agreement for sale, not the brochure date or any informal commitment. A grace period clause in the agreement (often 6 months) is generally enforceable to the extent it is reasonable. Subsequent extensions of the project registration under Section 6 RERA Act do not automatically extend the agreement-stated date — that is a recurring builder argument that MahaRERA has consistently rejected.

For Pune projects that secured registration extensions in 2020–2021 citing Covid-19, the Authority's general approach has been to recognise the extension at the project level but to treat the individual allottee's agreement date as the relevant date for Section 18 unless the agreement was itself amended.

What to file with — documents you need

A clean Section 18 complaint typically includes:

• The agreement for sale registered under Section 13 RERA, with the possession date.
• Payment receipts and bank statements showing dates and amounts paid.
• The builder's RERA registration certificate and any extension orders.
• Any correspondence with the developer on possession date.
• A calculation sheet of interest at SBI MCLR + 2% from date of each payment.
• Bank account details for refund.

A worked Pune example

A buyer paid ₹35 lakh in instalments between 2021 and 2024 against an agreement-stated possession date of 31 December 2024. By June 2026, possession has not been handed over and the project has had two extensions.

Route A (refund): the allottee files for refund of ₹35 lakh plus interest at SBI MCLR + 2% on each instalment from date of payment. The total refund-plus-interest claim typically exceeds the principal substantially by Year 2.

Route B (continue): the allottee accepts the project will complete and files for interest at SBI MCLR + 2% on the amount paid, calculated monthly, from 1 January 2025 till the date of possession.

In both routes, MahaRERA usually disposes the complaint within four to eight months of filing. Compliance with the order is monitored under Section 40 RERA Act, and non-compliance can attract penalty.

What Section 19 adds — allottee rights

Section 19 RERA Act lists the allottee's rights and duties — including the right to obtain information about the project plans, layout, specifications and stage-wise completion, and the right to claim possession as per the agreement. It complements Section 18 rather than substituting it, but the right to know about completion status (Section 19(1)) is what often supports a strong Section 18 case.

For a structured pre-purchase due diligence to avoid landing in a Section 18 situation in the first place, see our MahaRERA buyer's checklist.

Pune note: filing the Section 18 complaint cleanly

At RDA Tax Advisory Services, Baner, we file Section 18 complaints before MahaRERA for Pune buyers caught in delayed projects. Our work includes preparing the interest calculation at SBI MCLR + 2% from each instalment date, organising the payment receipts and agreement, drafting the complaint and prayer (refund + interest under 18(1)(a) or interest under 18(1)(b)), and pursuing the matter through to the Authority's order and compliance. For redevelopment-related delays — increasingly common in Pune's older society projects — we coordinate the Section 18 angle with the redevelopment scheme position. Office No. 102, Snehraj Apartment, Baner, Pune 411045 · call +91 77570 45059.

File your Section 18 complaint at MahaRERA

Builder missed your Pune possession date by months or years? RDA prepares the Section 18 calculation and complaint and pursues it before MahaRERA — refund with interest, or interest for continued delay. Book a RERA consult at rdatax.in or call +91 77570 45059 — RDA Tax Advisory Services, Baner, Pune.

Verification note: Material legal positions — RERA Act 2016 Section 18 (right to withdraw with refund + interest, or continue with interest for delay), Section 19 (allottee rights), Section 13 (registered agreement), Section 71 / 72 (Adjudicating Officer jurisdiction over compensation under Sections 12, 14, 18, 19), Section 40 (recovery of order amounts); Maharashtra Real Estate (Registration of Real Estate Projects, Registration of Real Estate Agents, Rates of Interest and Disclosures on Website) Rules, 2017 prescribing SBI MCLR + 2% as the interest rate; the Authority-vs-Adjudicating-Officer jurisdictional split established in MahaRERA Appellate Tribunal orders — are sourced from the MahaRERA portal (maharera.maharashtra.gov.in) including the official "Rights and Duties of Allottees" page and the Appellate Tribunal order archive. Confirm specific facts of your case with an advocate.