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Delay, refund, interest and compensation

Where the promoter fails to complete or give possession as agreed, an allottee may withdraw and seek refund with interest and compensation or remain and cl

Finin2min summary

Where the promoter fails to complete or give possession as agreed, an allottee may withdraw and seek refund with interest and compensation or remain and claim delay interest, subject to facts and forum.

Source review date: 4 July 2026. Read with the official text and the facts of the transaction.

Legal anchors

  • Section 18
  • Sections 71 and 72
  • State interest rules

How to analyse it

  1. Compare registered completion and agreement date.
  2. Identify force-majeure and extension orders.
  3. Compute principal, interest and payments.
  4. Choose remedy and forum strategically.

Practical illustration

A buyer paid ₹80 lakh and the project is delayed by two years without valid extension. The buyer should compare refund, continued possession and parallel consumer remedies.

What can go wrong?

  • Using internal revised date not registered date
  • Ignoring valid authority extensions
  • Double recovery across forums

Evidence pack

  • Agreement
  • Payment ledger
  • Registration/extension orders
  • Interest calculation

Decision workflow

  1. Freeze the facts and effective date.
  2. Identify the controlling Act, rule, notification, circular and jurisdictional overlay.
  3. Prepare a calculation or exposure note.
  4. Collect the evidence pack before filing, payment, signing or response.
  5. Record reviewer conclusion and assumptions.

Quick Q&A

Is the result automatic?

No. Compare registered completion and agreement date.

What is the most important control?

Choose remedy and forum strategically.

What should be escalated?

Using internal revised date not registered date, especially where money, deadlines, enforcement, personal liability or irreversible transaction steps are involved.

Official source trail

Secondary commentary may help interpretation, but it is not the source of law.

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