Section 18: delayed possession, interest and compensation

What can an allottee ask for under Section 18?

Where the statutory conditions are met, Section 18(1) distinguishes an allottee withdrawing from the project from one who continues. Withdrawal can involve return of the amount with prescribed interest and compensation as provided by law; continuing involves prescribed interest for each month of delay until possession. The chosen relief should fit the facts.

Record the contractual possession date, payments, later communications and actual project position. A portal extension is not automatically a rewrite of the buyer agreement. Compensation and interest are not interchangeable procedural labels; the appropriate forum and proof must be assessed.

How should interest and loss be documented?

Use a receipt-wise payment schedule, a clearly stated period and the applicable state rule. Maharashtra Rule 18 refers to the State Bank of India’s highest MCLR plus two percentage points, with its stated substitution proviso. It is a benchmark formula, not a permanent fixed percentage or a rule for every state.

Keep receipts, lender disbursements, rent records and correspondence supporting alleged loss. Explain calculation assumptions and avoid double-counting. A spreadsheet is not an award. Outcomes depend on facts and the decision of the Authority or Tribunal, including the evidence and defences raised.

Official sources

• RERA Act, Sections 18, 19 and 71
• Maharashtra 2017 registration rules, Rule 18: official listing

See delay-claim support and the illustrative interest calculator.

Editorial source check: 2026-10-24. Owner-approved for publication. No independent professional legal review or named professional authorship is claimed. “Last reviewed” records an editorial update, not legal sign-off. Check applicable amendments, orders and case-specific law before reliance.

General information, not legal advice. Authorship and review policy.