If your project fails or stalls for good, you get your full booking amount back. This right comes from Section 18 of the RERA Act. A builder who misses the handover date must return every rupee you paid. This includes your token amount plus interest. The interest rate is the SBI lending rate (MCLR) plus 2 percent. It runs from your payment date until you get the refund.
Before 2016, buyers had little power when a project got stuck. Years could pass with no work on site and no answers from the builder. RERA changed this. It gave buyers clear rules and firm deadlines. Builders can no longer stall without any cost to them.
When a builder misses the promised date, RERA Section 18 offers two paths. You can pick the one that suits your needs.
The first choice is to exit the project. You get a full refund with interest for every month of delay. The second choice is to stay invested. If you still want the flat, you can wait it out. The builder must then pay you monthly interest until you get possession.
RERA asks builders to keep 70 percent of buyer funds in a separate bank account. This money can only go toward that one project. Builders can only draw funds as work moves forward on site. This rule stops them from using your money on other projects.
Section 13 of RERA sets a clear limit. No builder can collect more than 10 percent of the flat cost as advance payment. This cap applies before the Sale Agreement gets signed and registered. Anything higher than this is against the law.
Sometimes a builder delays the refund or stops replying. You then have three legal paths to get your money back.
| Legal Authority | Action Required | Key Outcome |
| State RERA Authority | File an online complaint under Section 31 | Order for full refund with SBI MCLR plus 2 percent interest |
| Consumer Forum (NCDRC or SDRC) | File a case for deficiency of service | Refund plus compensation for stress and legal costs |
| NCLT under the Insolvency Code | File a joint petition if the builder goes bankrupt | Buyers become financial creditors in asset recove |
The State RERA Authority is often the fastest route. Most state portals settle complaints in 60 to 90 days. The consumer court route takes longer. But it lets you claim extra money for stress and hardship. This helps if you paid rent and an EMI at the same time. The NCLT path suits cases where the builder has truly run out of funds. Here, every buyer gets treated as a financial creditor. You get a real say in how the company's assets get split.
Your reason for leaving a project decides your refund amount. Builders treat these two cases very differently.
| Scenario | Cause | Refund Entitlement | Deductions Allowed |
| Project Failure | Builder stopped work, lost approvals, or missed the deadline | Full refund plus interest | None allowed by law |
| Voluntary Exit | You changed your mind or faced money trouble | Balance returned in 30 to 45 days | Usually 1 to 2 percent as a f |
Some builders try to label a real failure as a voluntary exit. This lets them offer you a smaller refund. Know which case fits your situation. This helps you demand the full amount you deserve.
Careful checks before payment work better than chasing a refund later. A little research now saves you months of stress.
Always check the RERA number before you pay any token amount. A project with no RERA registration gives you no legal cover. Projects like in East Bangalore list their RERA details on public pages. This gives buyers a clear starting point before they commit any money.
Check the builder's past record on delivery timelines. A steady record tells you more than any sales pitch. Ask for an official receipt for every payment. Make sure it lists the flat number, project name, and builder details. This paperwork matters if you ever need to file a claim.
Brigade Group Prelaunch Project is Brigade Granada.
No. If the project fails due to the builder's fault, they cannot cut any charges. You get the full amount back with no deduction.
RERA sets the rate at SBI's MCLR plus 2 percent. This runs from your payment date until the refund reaches your account.
Once RERA passes an order, builders must usually comply within 60 to 90 days. The exact timeline can vary by state.
Your loan payments to the bank continue as usual. You keep paying EMIs while you pursue the refund claims. Use the recovered money to close or cut your loan.
You can join other buyers and file a case with the NCLT. This is done under the Insolvency and Bankruptcy Code. You then get treated as a financial creditor.
Yes, but the builder can deduct a small fee. This is usually 1 to 2 percent of the total cost. You get the rest back in 30 to 45 days.
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