Section 18 of RERA : Section 18: Return Of Amount And Compensation

Explanation using Example

Imagine that Mr. Sharma books an apartment in a new housing project by XYZ Developers, which promises possession by December 2021 according to their sale agreement. However, December 2021 comes and goes, and the construction is far from complete. XYZ Developers have run into financial troubles and can no longer continue the project.

Under Section 18(1) of The Real Estate (Regulation and Development) Act, 2016, Mr. Sharma is entitled to two options:

1. If he decides to withdraw from the project, he can demand a full refund of the amount paid along with prescribed interest and compensation for the delay.
2. If Mr. Sharma chooses not to withdraw from the project, he is entitled to receive monthly interest on the amount paid for every month of delay until he gets possession of the apartment.

Furthermore, if it is later discovered that XYZ Developers did not have a clear title to the land where Mr. Sharma's apartment is being built, under Section 18(2), the developer would be required to compensate Mr. Sharma for any loss caused due to this defective title.

Lastly, if XYZ Developers fail to meet any other obligations stated in the Act or in the sale agreement, Section 18(3) mandates that they compensate Mr. Sharma accordingly.