Your RERA Rights as an Allottee: Compensation, Refunds, and Redressal The Real Estate (Regulation and Development) Act, 2016 (RERA) was enacted to establish a transparent and accountable framework for the real estate sector, primarily to protect homebuyers and foster investor confidence in India. ts core objectives include ensuring timely delivery of projects, mandating full disclosure of project details, and providing a dedicated grievance redressal mechanism, thereby minimizing unfair practices by developers. Overview of the RERA Framework RERA mandates the creation of a Real Estate Regulatory Authority in each state, responsible for registering all real estate projects and agents before marketing begins. It defines critical terms—such as “promoter, ” “allottee, ” and “real estate project”—to standardize practices and interpretations across jurisdictions. Right to Timely Possession Under Section 19(3) of RERA, promoters must deliver possession of the project within the timeframe agreed upon in the sale agreement. If possession is delayed and the allottee chooses not to withdraw, the promoter is liable to pay interest at the prescribed rate for every month of delay until possession is granted, in accordance with Section 18(1) proviso. This provision ensures that allottees are compensated for the financial burden of delays without forfeiting their right to continue with the project. Right to Refund & Compensation Allottees hold an unconditional and absolute right to demand a full refund of amounts paid, along with prescribed interest, if they choose to withdraw from a delayed or stalled project under Section 18(1) of RERA. Beyond refunds, promoters are also accountable for additional compensation if they fail to meet other obligations—such as adhering to approved plans or quality benchmarks—ensuring multi-dimensional protection for allottees. Grievance Redressal Mechanism Allottees can file complaints with the State Real Estate Regulatory Authority or with an adjudicating officer under Section 31, detailing any contravention of RERA provisions by the promoter or agent. Authorities are mandated to resolve such complaints typically within 60 days, with provisions for appeal to the Real Estate Appellate Tribunal for dissatisfied parties, ensuring a speedy and structured dispute resolution process. Enforcement & Penalties Non-compliance by promoters—such as launching an unregistered project, failing to adhere to agreed timelines, or providing false disclosures—attracts penalties under Section 59, including fines up to 10% of the project cost and imprisonment for continued defaults. State RERAs have the power to initiate enforcement actions, including stopping sales and advertising, seizing assets, and issuing recovery certificates to protect allottees’ interests. RERA has fundamentally reshaped the real estate landscape in India, empowering allottees with enforceable rights to timely possession, full refunds, and interest-based compensation, backed by a robust grievance redressal mechanism and stringent penalties for non-compliance. Allottees should leverage these statutory protections proactively—by verifying project registrations, monitoring timelines, and promptly filing complaints—to safeguard their investments and seek timely justice under RERA.