RERA Delay Interest Calculator — Section 18

Under Section 18 of the RERA Act 2016, if a promoter fails to hand over possession by the date in the registered agreement for sale, the buyer is entitled to interest at SBI's highest MCLR + 2% per annum on the amount paid, calculated from the promised possession date until possession is actually offered. The rate floats with SBI's MCLR, so always check the current MCLR on sbi.co.in before filing a claim. Enter your invested amount, agreed possession date and actual or expected possession date in the calculator below to get the exact interest owed — whether you choose to stay in the project or withdraw with a full refund.

Delay Interest Calculator

Based on Section 18, RERA Act 2016 — SBI highest MCLR + 2% per annum

Current rate used: 10% p.a. (MCLR+2%) — Update this if SBI has revised MCLR since April 2025. Check sbi.co.in for current MCLR rates.

Total amount paid to builder (₹)

Months of delay

Buyer's choice

MCLR+2% rate (% p.a.)

Interest claimable

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What is Section 18 of RERA?

Section 18 of the Real Estate (Regulation and Development) Act 2016 is the primary remedy provision for homebuyers when a promoter fails to deliver possession by the agreed date. It gives the buyer two clear options — and the interest rate for both is identical.

The prescribed interest rate is SBI's highest Marginal Cost of Lending Rate (MCLR) plus 2% per annum. This rate is not fixed — it moves when SBI revises its MCLR. As of early 2025, this is approximately 10-11% per annum.

Two Options Under Section 18 — Comparison

Option	What You Get	Interest Runs From	Best When
Stay in project (Section 18(1) first part)	Monthly interest for every month of delay	Agreed possession date	You want the flat and builder will complete it
Withdraw (Section 18(1) second part)	Full refund + interest on each payment	Date of each payment made	Project is unlikely to complete or you want out

The practical difference: if you stay, interest runs from the agreed possession date. If you withdraw, interest runs from the date of each individual payment. That can increase compensation when payments were made early.

Worked Examples

Example 1 — Buyer stays in the project

Amit paid ₹60 lakh for a flat with possession promised in June 2023. It is now December 2024 — 18 months of delay. Amit wants to continue with the purchase. MCLR+2% = 10% p.a.

Interest = ₹60L × 10% × 18/12 = ₹9,00,000 claimable from the promoter

Example 2 — Buyer withdraws

Priya paid ₹40 lakh across 3 instalments in 2021-22. Possession was promised in 2023. The project has stalled. Priya wants to withdraw. MCLR+2% = 10% p.a. and payments were made approximately 3 years ago on average.

Refund = ₹40L principal + interest from each payment date = ₹40L + ~₹12L interest = ~₹52L total claimable

The Symmetry Principle — Both Sides Pay the Same Rate

One of the most important and frequently tested facts about Section 18 is that the interest rate is symmetric. The same MCLR+2% rate that the promoter pays for delaying possession is also the rate the allottee pays for defaulting on their payment instalments.

This symmetry is intentional — it prevents either party from benefiting from delay at the other's expense. It is also one of the most commonly tested points in the MahaRERA IBPS exam.

Defect in Title — Section 18(3)

Section 18(3) provides a separate remedy: if the allottee suffers loss due to defective title of the property, they are entitled to compensation from the promoter. Unlike the delay interest which has a formula, defective title compensation is assessed based on actual loss suffered. There is no time limit on claiming compensation for defective title under RERA.

How to Claim Delay Interest in Maharashtra

Try the Conciliation Forum first: MahaRERA's Conciliation Forum at maharera.mahaonline.gov.in is free and faster than formal adjudication. Many delay interest cases are resolved here within 2-3 months.
File a formal complaint with MahaRERA: If conciliation fails, file a complaint on the MahaRERA portal. Fee: ₹5,000. The Authority typically issues orders within 60-90 days.
Appeal to MREAT: If dissatisfied with the MahaRERA order, appeal to the Maharashtra Real Estate Appellate Tribunal within 60 days.
Do not go to civil court: Section 79 of RERA bars civil courts from hearing matters under RERA's jurisdiction. RERA forum is the correct and only route.

What MahaRERA Cannot Do Automatically

MahaRERA orders the promoter to pay — it does not automatically deposit money in your account. If the promoter does not comply with the order, you must file for enforcement. MahaRERA can then issue a Recovery Warrant and recover the amount as arrears of land revenue under Section 40. This is a powerful enforcement mechanism — but it requires you to follow up actively.

This Is Tested in the MahaRERA Exam

Section 18 is one of the highest-weightage topics in the IBPS exam. Expect 2-3 questions directly testing: the rate (MCLR+2%), the two remedies (stay vs withdraw), the symmetry principle, and calculation scenarios. The exam will give you a property value and delay duration and ask you to calculate the interest claimable.

Section 18 is a Guaranteed Exam Topic

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Frequently Asked Questions

Does Section 18 apply to all RERA registered projects?

Yes. Section 18 applies to all projects registered with the RERA Authority. If your project is registered with MahaRERA, you have Section 18 rights. If the project was not required to be registered (small project exemptions), or is genuinely unregistered, RERA remedies may not apply — consult a property lawyer in that case.

Can I claim delay interest if I have also delayed my payments?

Your own payment delays complicate the claim. The promoter will typically counter-claim that your delays contributed to the project delay. MahaRERA adjudicators consider both parties' conduct. Generally, if the overall project delay far exceeds your payment delays, you still have a strong claim — but the interest may be set off against any interest you owe the promoter for late payments.

What if the promoter gives force majeure as the reason for delay?

Force majeure under RERA is limited to specific events: war, flood, drought, fire, cyclone, earthquake, or other natural calamities. Financial difficulty, subcontractor issues, and approval delays are not force majeure under RERA. COVID-19 was recognised as force majeure for a specific period by MahaRERA. For any other reason, the promoter cannot escape Section 18 liability by claiming force majeure.

Is delay interest taxable in the buyer's hands?

Yes. Interest received under Section 18 from a builder is taxable as income in the year of receipt under the head "Income from Other Sources." It is not capital gains. Some taxpayers argue it should be reduced from the cost of acquisition — the tax treatment is debated and you should consult a chartered accountant for your specific case.

Disclaimer: This calculator is for estimation only. The actual MCLR+2% rate changes when SBI revises its MCLR. The calculation method shown is based on Section 18 of the RERA Act 2016. For legal advice on your specific case, consult a qualified property lawyer. RERAExam is not a law firm and this is not legal advice.

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