The builder promised you the keys by a fixed date. That date has passed, and you are still paying EMI on one side and rent on the other.
I’m Swastik from BestHouz. I help buyers in Vasai, Virar, Nallasopara, Naigaon and Mira Road buy new flats with 0% brokerage, and this is the question I hear most from people already stuck in a delayed project.
The good news: Section 18 of the RERA Act lets you claim interest for every month of delay. This guide shows you how much you can claim and how to file, step by step.
What Does Section 18 of RERA Say?
Section 18 of the Real Estate (Regulation and Development) Act, 2016 protects you when the builder fails to complete the project or hand over your flat by the date in your agreement for sale.
It gives you a clear choice. You do not have to accept the builder’s excuses or a vague “next Diwali” promise.
Your two options: stay and take interest, or withdraw and get a refund with interest
Option 1: Stay in the project. You keep your flat, and the builder must pay you interest for every month of delay until possession is handed over (proviso to Section 18(1)).
Option 2: Withdraw from the project. The builder must return everything you paid for the flat, with interest, plus compensation (Section 18(1)).
Under Maharashtra rules, once a refund becomes due, the builder must pay it within 30 days. Compensation is decided separately by MahaRERA’s Adjudicating Officer under Sections 71 and 72.
Which projects it covers
Section 18 covers flats, shops and plots in projects registered with MahaRERA. Ongoing projects that were registered after RERA came into force in Maharashtra (1 May 2017) are covered too.
A complaint on the MahaRERA portal can be filed only against a registered project. Before you do anything else, check your project’s registration number. Our guide on how to check MahaRERA registration walks you through it.
How Much Interest Can You Claim?
This is where most buyers either underestimate their claim or get confused by the builder’s numbers. The rate is fixed by law, not by the builder.
The rate: SBI highest MCLR + 2% (Rule 18)
Rule 18 of the Maharashtra RERA Rules, 2017 sets the interest at the State Bank of India’s highest Marginal Cost of Lending Rate (MCLR) plus 2%. The same rate applies both ways: the builder pays it for delay, and you pay it if you are late on an instalment.
SBI’s highest MCLR today is the 3-year MCLR of 8.95%, effective from 15 October 2026. So the Section 18 rate right now is 8.95% + 2% = 10.95% per year.
SBI revises MCLR from time to time. The rate that finally applies to you is the one MahaRERA writes in your order, so check SBI’s MCLR page when you file.
Example calculation for a ₹40 lakh flat delayed by 12 months
Say your flat’s agreement value is ₹40 lakh. You have paid ₹36 lakh (90%) so far, and possession is 12 months late.
Interest is calculated on the amount you have actually paid, not on the full flat price.
| Item | Amount |
|---|---|
| Agreement value | ₹40,00,000 |
| Amount paid so far (90%) | ₹36,00,000 |
| Interest rate (SBI 3-year MCLR 8.95% + 2%) | 10.95% per year |
| Monthly interest (₹36,00,000 × 10.95% ÷ 12) | ₹32,850 |
| Total for 12 months of delay | ₹3,94,200 |
That is ₹32,850 every month, close to a full EMI on many home loans. Over a year, it adds up to ₹3,94,200.
This is a simple-interest example at today’s rate. If you paid in instalments, interest on each payment is worked out from the dates that apply to it, so your actual figure may differ. You can see your full cost on our package price calculator.
When interest starts
Interest starts from the possession date written in your agreement for sale. If your agreement allows a grace period, MahaRERA usually counts from the end of that grace period.
It runs until the builder offers you possession with a valid Occupancy Certificate (OC). An “offer of possession” without OC does not stop the clock.
Do You Qualify? 5 Quick Checks
Before you file, run through these five checks. They decide how strong your claim is.
Is your agreement for sale registered?
A registered agreement for sale is the strongest proof of your possession date. Under Section 13, a builder cannot take more than 10% of the price without one.
If your agreement is not registered, you can still file. The Maharashtra Real Estate Appellate Tribunal has held that interest for delay cannot be denied just because the agreement is unregistered, if other documents (allotment letter, email, brochure) show the promised date.
Is the project registered on MahaRERA?
Search your project on the MahaRERA website using its registration number or name. Note the registration number; you will need it in the complaint form.
If the project is not registered but should be, you cannot file a Section 18 complaint against it on the portal. MahaRERA has a separate “Inform Non-Registration” option for such projects.
Did the builder extend the date, and does that affect your claim?
Builders often extend the completion date on their MahaRERA registration. That extension is between the builder and the regulator.
In practice, MahaRERA counts your delay from the date in your agreement for sale, not from the builder’s revised registration date. Unless you signed something agreeing to a new date, your agreement date stands.
Force majeure: what the builder can and can’t use as an excuse
Genuine force majeure means events like war, flood, earthquake or a natural calamity. Labour shortage, cash problems or slow approvals are usually not accepted as force majeure.
For COVID-19, MahaRERA (Order No. 14/2020) declared 15 March 2020 to 14 September 2020 as a force majeure period. Those six months are excluded when interest is calculated, so expect the builder to deduct them. Anything beyond that, the builder has to justify.
Have you already taken possession or signed a waiver?
If you have taken possession and signed a letter saying you have “no claims” against the builder, your interest claim gets much harder. Read every possession or “settlement” letter before you sign.
If you took possession without signing any waiver, you may still be able to claim interest for the period of delay. Speak to a RERA lawyer about your specific documents.
Documents You Need Before Filing
Keep these ready as PDF scans.
- Allotment letter and registered agreement for sale
- All payment receipts from the builder
- Bank statements showing payments, including home loan disbursements
- Builder’s demand letters, emails and WhatsApp messages about the possession date
- Any extension or “revised date” letters from the builder
- Any offer of possession or possession letter (if received)
- The project’s MahaRERA registration number
- Your flat details: building, wing and flat number, total price, amount paid, booking date, agreement date and promised possession date
Tip: send the builder a written letter or email first, asking for possession or interest. Keep the proof. It is not compulsory, but it shows the date you raised the issue.
How to File a Complaint on the MahaRERA Portal (Step by Step)
You can file the complaint yourself. You do not need an agent, and nobody needs your OTP or password.
Step 1: Register on the MahaRERA complaint portal
Go to maharera.maharashtra.gov.in and click “Make a Complaint”. Complaints are now filed on MahaRERA’s online complaint portal (MahaCRITI).
Register as a new user with your own mobile number and email. Hearing notices will come to these, so don’t use your lawyer’s details.
Step 2: Fill in the complaint form under Section 18
Log in, open “New Complaint” and add the builder as the respondent using the project registration number. Enter your flat details, amount paid and the promised possession date.
Write the facts in date order. Under relief sought, state Section 18 and whether you want interest for delay (staying) or a refund with interest (withdrawing). Upload your documents.
Step 3: Pay the filing fee
The complaint fee is ₹5,000, paid online. The portal shows the final amount, including any service charges, at the payment step.
Once payment goes through, you get a complaint number. You and the builder are both informed by email.
Step 4: Conciliation or hearing: what happens next
MahaRERA may offer the Conciliation and Dispute Resolution Forum, where trained conciliators help both sides settle. It works only if both you and the builder agree to it.
If there is no settlement, your complaint is heard by a MahaRERA bench. You can attend in person or online, and argue yourself or through a lawyer. Check your dashboard often so you don’t miss a date.
Step 5: The order, and what to do if the builder doesn’t pay
MahaRERA’s order will state the interest rate, the start date and the amount it applies to. Download and keep a copy.
If the builder does not pay, you can apply for execution of the order on the portal (generally after 60 days). Under Section 40, MahaRERA can issue a recovery warrant to the Collector, who can recover the amount from the builder as arrears of land revenue, including by attaching bank accounts and property.
Withdraw or Stay? How to Decide
There is no one right answer. It depends on how far the project has reached and how much you trust the builder to finish.
When taking a refund with interest makes more sense
Withdraw if construction has stopped, the builder is in financial trouble, or there is no clear plan to get the OC. Your money is better back with you than stuck in a stalled project.
Also consider it if you have found a better home elsewhere and need the funds. Keep in mind that a refund order still has to be recovered, which can take time with a weak builder.
When staying in the project and taking monthly interest is better
Stay if the building is nearly complete and the OC is a matter of months. Property prices in Vasai-Virar have moved up over the years, so your flat may be worth more than you paid.
The monthly interest also helps cover your EMI and rent while you wait. In our example above, that is ₹32,850 a month.
Real Vasai-Virar Example
In February 2026, MahaRERA ordered the promoter of “Mohak Oyster Living”, a registered project in Vasai-Virar, to pay delay interest to four shop buyers. This was reported by the Free Press Journal on 13 February 2026.
As per the report, the agreements promised possession by 31 December 2018 (including a six-month grace period). The buyers had paid between ₹16 lakh and ₹35.77 lakh, in some cases the full price, but the Occupancy Certificate had still not been obtained.
What MahaRERA ordered
MahaRERA directed the promoter to pay interest from 1 January 2019 until possession is offered with an Occupancy Certificate. Interest is on the actual amount each buyer paid, at SBI MCLR + 2%.
The lesson for flat buyers is the same: the clock starts from your agreement date, and only possession with OC stops it.
Common Mistakes Buyers Make
I see these mistakes again and again. Each one can cost you lakhs.
Signing a builder’s extension letter without reading it
Builders often send a polite letter asking you to “acknowledge” a new possession date. Signing it can be treated as agreeing to the new date, which can reduce your claim.
Don’t sign anything about a new date until you understand what you are giving up. Ask a lawyer or ask me if you are unsure.
Waiting too long to file
Interest keeps adding up, but so does the risk. Builders in trouble can run out of money or face insolvency, and late complainants may stand behind many others.
MahaRERA hears complaints largely in order of filing. The sooner you file, the sooner your turn comes.
Accepting a “discount” instead of the interest you’re owed
Some builders offer a small discount on the balance, free parking or a modular kitchen to settle the delay. Do the maths first.
In our example, the interest owed is ₹3,94,200 for one year. A ₹1 lakh “goodwill discount” is far less than what the law gives you.
FAQs
Can I claim interest if my agreement is not registered?
Yes, in many cases. The Maharashtra Real Estate Appellate Tribunal has held that delay interest cannot be denied only because the agreement is unregistered, if documents like an allotment letter or emails show the promised possession date.
Do I need a lawyer to file a MahaRERA complaint?
No. You can file and argue the complaint yourself on the MahaRERA portal. A RERA lawyer helps in complex cases, such as a builder claiming force majeure or a waiver you have signed.
How long does MahaRERA take to decide?
The RERA Act asks MahaRERA to decide complaints within 60 days, but in practice it usually takes longer because complaints are heard in order of filing. Conciliation, if both sides agree, can be faster.
Is the interest I receive taxable?
Interest received for delayed possession is commonly treated as taxable “income from other sources”, and the Mumbai bench of the Income Tax Appellate Tribunal has taken this view. Tax treatment can depend on your facts, so please consult your CA before filing your return.
Buying New? Avoid Delays from Day One
The best way to win a delay case is never to need one. Most delays can be spotted before you book, if you know where to look.
Most buyers in Vasai-Virar find out about hidden charges, an unregistered project or a pushed-back possession date only after paying the token amount. This free checklist covers the 24 things to check before you book: RERA status, OC, the full package price, parking, the society fee and more. Enter your WhatsApp number and it will be sent to you within 15 minutes.
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Disclaimer: This article is general information, not legal or tax advice. Rules, rates and MahaRERA practice change over time. For your specific case, please consult a RERA lawyer or your CA. Interest rate figures are as on 11 November 2026.