An NRI homebuyer can file a complaint with the Real Estate Regulatory Authority of the state where the project is located, online or through an authorised advocate. If the builder has missed the possession date in the agreement, section 18 of RERA lets you choose between withdrawing and taking a full refund with interest, or staying in the project and receiving interest for every month of delay.
- Law
- RERA Act, 2016, section 18
- Where to file
- State RERA of the project
- Your choice
- Refund or possession with interest
- Appeal
- Appellate Tribunal within 60 days
What RERA entitles a buyer to
The Act applies to almost every residential and commercial project above a small threshold, and each must be registered with the state authority before it is advertised or sold. Registration brings binding obligations on the promoter:
- Possession on the agreed date. If it is missed, section 18 gives you refund with interest and compensation, or interest for the delay while you wait.
- No more than ten per cent before agreement. A promoter cannot take over ten per cent of the price without a registered agreement for sale.
- Money ring-fenced. Seventy per cent of what buyers pay must go into a separate account used only for that project.
- No unilateral changes. Plans, layout and specifications cannot be altered without consent of two-thirds of the allottees.
- Five-year defect liability. Structural and workmanship defects reported within five years of possession must be fixed free of cost.
RERA, consumer commission or both
RERA is not the only forum. A flat buyer is also a consumer, and the Supreme Court held in Imperia Structures v. Anil Patni (2020) that the RERA remedy is in addition to, not in place of, a complaint under the Consumer Protection Act, 2019. Where the developer is insolvent, homebuyers rank as financial creditors under the Insolvency and Bankruptcy Code and can file a claim with the resolution professional.
The right choice depends on the builder's finances, the amount at stake, how the particular state authority functions and whether you want the flat or your money. We compare the options on your facts before filing, because starting in the wrong forum can waste a year.
How a RERA complaint proceeds
The complaint is filed on the portal of the state authority with the agreement, payment proofs and correspondence. Fees are nominal. The authority issues notice to the promoter, hears both sides, often by video conference, and passes a written order. Claims for refund and interest are decided by the Authority; claims for additional compensation go before its Adjudicating Officer.
The Act expects disposal within sixty days, a target that busy authorities often miss; a realistic range is a few months to a year. An aggrieved party can appeal to the Real Estate Appellate Tribunal within sixty days, and a promoter who appeals must first deposit a substantial part of the amount ordered. A further appeal lies to the High Court on questions of law.
Turning the order into money
Winning the order is half the work. If the builder does not pay, we apply for a recovery certificate, which the Collector executes as arrears of land revenue, including by attaching the developer's accounts and property. Persistent non-compliance attracts daily penalties under the Act and, in serious cases, imprisonment. Where directors have diverted funds or sold the same unit twice, a criminal complaint for cheating and criminal breach of trust is filed alongside. See fraud recovery.
Issues particular to NRI buyers
NRIs are frequently sold through overseas roadshows with assured-return or buy-back promises. These are enforceable if written into the agreement or brochure, and RERA treats the brochure as binding. Keep every email and advertisement.
Refunds are credited to the account from which you paid. If you bought through an NRE account or inward remittance, the refund and, subject to RBI rules, the interest can be repatriated. Interest awarded is taxable in India and tax may be deducted at source at the non-resident rate, so it should be planned for. If you have not yet bought, start with a title and RERA check.
Mistakes that cost NRIs time and money
- Accepting possession without an occupancy certificate under pressure from the builder.
- Signing a revised agreement that quietly extends the completion date.
- Stopping instalments without legal advice, which hands the builder a default argument.
- Not keeping the brochure, emails and payment proofs that show what was promised.
A typical situation
Four years late, and the builder offers a discount
A buyer overseas paid ninety per cent of the price for a flat due in 2021. In 2025 the tower is still incomplete and the builder offers a small discount if she signs a fresh agreement. Instead she files before the state authority for refund with interest under section 18. The authority orders refund of the full amount with interest at the prescribed rate from each payment date; when the builder delays, a recovery certificate goes to the Collector and the developer's account is attached.
Illustration only, based on patterns we commonly see. It is not a real client's case and outcomes depend on the facts.
If you live in...
The Indian law is the same wherever you live. These are the points that differ by where you are.
USA and Canada
Assured-return and buy-back promises made at overseas property shows are enforceable if they appear in the brochure or agreement. Keep the marketing material.
UK and Europe
Refunds are paid to the account you paid from. If you remitted from abroad, keep the inward remittance advice so the refund can be repatriated.
UAE and the Gulf
Many Gulf residents hold several bookings. Each unit needs its own complaint, but they can be heard together if the project is the same.
Country pages: UAE, Saudi Arabia, Qatar, Kuwait, Oman, Bahrain
Australia, New Zealand and Asia
Hearings are often online, and a short time difference means you can attend an important hearing yourself if you wish.
Country pages: Australia, New Zealand, Singapore, Malaysia
Detailed country pages for this service: RERA Complaint in India for NRIs in New Zealand, RERA Complaint in India for NRIs in UAE, RERA Complaint in India for NRIs in Qatar
Documents you will need
These establish the promise, what you paid and what the builder failed to do.
- Allotment letter and builder-buyer agreement
- All payment receipts and bank statements
- Brochure, advertisements and emails
- Demand letters and your replies
- RERA registration number of the project
- Home loan sanction and statement, if any
- Photographs or reports of site status
- Your passport or OCI card and PAN
How we handle it for you
Claim assessment
We compute what is due: principal, interest at the prescribed rate and compensation, and check the builder's financial standing.
Notice to the promoter
A legal notice demands refund or possession and records the breach.
Filing
The complaint is filed online before the correct forum with a complete paper book.
Hearings
Our advocates appear at every hearing. You may join by video link if you wish.
Recovery
We pursue the recovery certificate, attachment and penalties until the amount reaches your account.
Frequently asked questions
Can an NRI file a RERA complaint from abroad?
Yes. Complaints are filed online on the state RERA portal and an authorised advocate can represent you at all hearings. Most authorities also hold hearings by video conference.
What can I claim if the builder delays possession?
You may withdraw and claim a full refund with interest and compensation, or continue with the project and claim interest for each month of delay until possession is handed over. The rate of interest is prescribed by state rules, generally the SBI lending rate plus two per cent.
Is there a time limit to file a RERA complaint?
The Act does not prescribe a specific limitation period for complaints, but authorities and courts expect them within a reasonable time and commonly apply a three-year yardstick from the breach. File as soon as the possession date has passed.
Can I go to both RERA and the consumer commission?
The remedies are concurrent, so you may choose either. You should not pursue the same relief for the same cause in both at once; pick the forum that suits your objective.
What if the builder ignores the RERA order?
The authority issues a recovery certificate that is enforced by the district Collector like land revenue arrears, through attachment of bank accounts and property. Continued default attracts penalties and can lead to imprisonment.
My project was never registered with RERA. Do I still have a remedy?
Yes. Selling an unregistered project is itself an offence under the Act and can be reported to the authority. You can also file a consumer complaint or a civil suit, and a criminal complaint if money was taken dishonestly.
Can I claim interest on the home loan I am paying for an undelivered flat?
The statutory interest awarded on your payments is intended to cover this. Additional losses, including rent paid elsewhere, can be claimed as compensation before the Adjudicating Officer.
Does force majeure protect the builder?
Only for genuine events beyond the builder's control and only to the extent of an extension granted by the authority. Shortage of funds, labour or approvals is not accepted as force majeure.
