TG-RERA Section 18 Delay Claim Guide: Rates & Process

Delayed Possession Advice: Claiming TG-RERA Section 18 Interest in Hyderabad

AshokGuru · 2026-08-01T00:00:00.000Z

When evaluating delayed high-rise or villa projects in Hyderabad, understanding your legal rights under TG-RERA is essential before signing developer settlement extensions. Under Section 18 of the RERA Act, if a developer fails to hand over possession by the date fixed in your registered Agreement for Sale, you have two enforceable legal options: • Option A (Stay & Collect Monthly Interest): If you wish to retain the property, the developer is legally bound to pay you monthly delay interest at SBI MCLR + 2% per annum on the total sum paid, accruing from the promised date until physical handover. • Option B (Withdraw & Demand Full Refund): If the project is indefinitely stalled, you can exit completely and claim a full refund of all amounts paid, plus interest at SBI MCLR + 2% calculated from the respective payment dates. How to File: Submit a formal complaint on rera.telangana.gov.in along with your registered Sale Agreement, payment receipts, and written delay notices. Have you faced possession delays with developers in West Hyderabad? Share your experiences with developer negotiations vs. formal TG-RERA filings below!

Waseemkhan

Does Section 18 interest apply if the home buyer has delayed any intermediate slab payment installments?

AshokGuru

@Waseemkhan If a buyer defaulted on payment timelines, the developer can claim interest on delayed payments as per the ATS rate. However, unless the developer officially cancelled the booking, buyer default doesn't completely negate Section 18 rights—the authority offsets the interest obligations for both sides.

Waseemkhan

@Waseemkhan Clear and logical. Mutual offsetting of interest delays makes complete legal sense.

Devkumar123

If a buyer chooses Option A (Stay & Collect Monthly Interest), does the developer pay this monthly, or is it adjusted against final possession/handover dues?

AshokGuru

@Devkumar123 In most conciliation settlements and TG-RERA orders, developers prefer adjusting the accumulated delay interest against the final corpus fund, GST, or handover demand note. If the interest amount exceeds your remaining dues, the developer must payout the balance directly.

Devkumar123

@Devkumar123 That is very helpful. Adjusting against final balance dues makes execution simpler for both parties.

Anjalimathur

Can a developer force home buyers to sign a supplementary agreement extending the handover date without paying delay compensation?

AshokGuru

@Anjalimathur No. Any clause or supplementary deed waiving your statutory right to Section 18 interest under coercion is legally invalid before TG-RERA. Do not sign supplementary extension deeds without explicit written clauses reserving your right to delay compensation.

Pavanreddy

What happens if the developer includes a force majeure or grace period clause of 6–12 months in the Sale Agreement? Does TG-RERA still enforce interest during that grace window?

AshokGuru

@Pavanreddy TG-RERA recognizes standard grace periods (usually 6 months) ONLY if explicitly stated in the registered Agreement for Sale. However, developers cannot unilaterally extend beyond that without RERA tribunal approval or proven force majeure (like COVID-18/floods). Interest starts compounding standardly after the grace period expires.

Pavanreddy

@Pavanreddy Thanks AshokGuru! So once the 6-month grace period in the ATS lapses, Section 18 interest kicks in immediately.

RealtyHyd

In reality, how long does the TG-RERA authority take to pass an order on Section 18 refund/interest applications filed on the rera.telangana.gov.in portal?

AshokGuru

@RealtyHyd On paper, RERA complaints should be disposed of within 60 days. In practice at TG-RERA Hyderabad, hearings usually take 4 to 8 months depending on developer counter-affidavits. Having a complete audit trail of payment receipts and registered ATS accelerates the execution order.

RealtyHyd

@RealtyHyd 4 to 8 months is still far faster than civil court litigation. Appreciate the realistic timeline info!