RERA Interest & Builder Delay Compensation Calculator
Calculate statutory interest and delay penalty under RERA Section 18 using live state-specific SBI MCLR rate rules.
What is RERA Section 18?
Section 18 of the Real Estate (Regulation and Development) Act, 2016 (RERA) outlines the rights of homebuyers in case a builder fails to complete or give possession of an apartment, plot, or building in accordance with the terms of the agreement for sale.
Under this section, if a builder delays possession, the buyer has two options:
- Withdraw from the Project: The builder is liable to return the entire amount received with interest at the prescribed rate, along with compensation.
- Continue in the Project: The homebuyer must be paid interest by the promoter for every month of delay until possession is handed over.
Prescribed RERA Delay Interest Rates
Most state RERA rules prescribe the rate of interest as the SBI Highest Marginal Cost of Funds Based Lending Rate (MCLR) + 2%.
Our calculator dynamically pulls current SBI MCLR rates and automatically applies the state-specific spread and compounding rules:
| RERA Authority / State | Calculation Method | Prescribed Rate Formula |
|---|---|---|
| MahaRERA (Maharashtra) | Compound Interest (Monthly) | SBI MCLR + 2% |
| Karnataka RERA (K-RERA) | Simple Interest | SBI MCLR + 2% |
| UP RERA (Uttar Pradesh) | Simple Interest | SBI MCLR + 1% / 2% (by date) |
| HRERA (Haryana) | Simple Interest | SBI MCLR + 2.25% |
Frequently Asked Questions (FAQ)
1. Can I get a full refund if my builder delays possession?
Yes, under Section 18 of the RERA Act, homebuyers are fully entitled to claim a refund of all principal amounts paid to the builder along with delay interest if the promoter fails to deliver possession within the time specified in the sale agreement.
2. What is the Highest SBI MCLR rate?
The Marginal Cost of Funds Based Lending Rate (MCLR) is the minimum interest rate below which a bank cannot lend. RERA rules reference the highest tenure MCLR (typically the 1-year rate) declared by the State Bank of India (SBI) at the time of calculation or filing.
3. Is builder delay interest taxable?
Yes, interest received on delay compensation under RERA rulings is generally categorized under "Income from Other Sources" and is taxable under the Income Tax Act at your slab rate.