Quick answer If your builder in Punjab or Haryana misses the possession date in your agreement, RERA Section 18 lets you claim simple interest at SBI’s highest MCLR + 2% (about 10.85% a year in November 2026) on everything you have paid, for every month of delay until possession. Or you can withdraw and get a full refund with interest from each payment date. Estimate your claim with our possession delay interest calculator.
Delayed possession is the most common complaint home buyers take to RERA in Mohali, Zirakpur, Kharar and Panchkula. The law is on the buyer’s side: the builder must either compensate you for the wait or return your money with interest. Here is how the claim works, how the amount is worked out, and how to file.
Your two choices under Section 18
| Stay in the project | Withdraw from the project | |
|---|---|---|
| What you get | Interest for every month of delay, and the flat when it is ready | Full refund of the amount paid, plus interest |
| Interest runs from | The promised possession date (plus any agreed grace period), or the payment date if you paid later | The date of each payment |
| Interest runs until | A valid offer of possession | The date the refund is paid |
| Best when | The project is progressing and you still want the home | The project is stuck, or the builder’s record is poor |
The rate: SBI MCLR + 2%
The RERA Act leaves the rate to the state rules. Both the Punjab RERA Rules, 2017 and the Haryana RERA Rules, 2017 set it at State Bank of India’s highest marginal cost of lending rate plus 2%. After SBI’s October 2026 revision its 1-year MCLR is 8.85%, so the rate is about 10.85% a year. Punjab RERA applied 10.80% in an order in June 2026. The rate on the date of the order is used, and the same rate applies if the buyer pays an instalment late.
A worked example
You booked a flat in Zirakpur with possession promised on 31 March 2024 and no grace period. You paid ₹10 lakh in January 2020, ₹20 lakh in July 2020, ₹20 lakh in June 2021 and ₹15 lakh in June 2022 — ₹65 lakh in all. On 11 November 2026 you are still waiting.
- Delay: 31 March 2024 to 11 November 2026 = 955 days (2 years, 7 months).
- Interest: ₹65,00,000 × 10.85% × 955 ÷ 365 ≈ ₹18.45 lakh.
- Each further month of delay adds about ₹58,800.
If you withdrew instead, interest would run from each payment date, so the refund would be ₹65 lakh plus a larger interest amount. Try your own numbers in the calculator.
What counts as possession
An offer of possession generally counts only when the builder can lawfully hand over the unit — usually after the occupancy or completion certificate has been issued. A “fit-out possession” or a letter without the certificate may not stop the interest. Keep every possession letter and check the certificate date on the RERA project page.
How to file a complaint
- Collect your papers: the agreement for sale, allotment letter, every payment receipt and bank statement, demand letters, and any letter or email from the builder about the delay.
- Write to the builder first. A written demand for interest or a refund often helps, and shows the authority you tried.
- File with the right authority: the Real Estate Regulatory Authority, Punjab for Mohali, Zirakpur, Kharar and New Chandigarh; HRERA Panchkula for Panchkula. Both take complaints online. Claims for compensation are heard by the adjudicating officer. Our free RERA complaint guide helps you draft it yourself.
- State the relief clearly: delay interest (staying) or refund with interest (withdrawing), from which dates, on which amounts. Attach a calculation.
- Attend the hearings and keep your payment record ready. Orders usually set a period for the builder to pay.
Check before you sign a settlement. Some builders offer a small discount or a “compensation credit” in return for giving up your RERA claim. Compare it with the interest you are owed first.
Related reading
Read our guide to buying under-construction property and the hidden charges in a flat price. To learn your rights in depth, RERACertified’s Home Buyer Rights course covers Section 18 and complaints step by step.
General information, not legal advice. Speak to a lawyer about your own case.
