Short Answer

Yes, under RERA, homebuyers can seek interest for delays as well as penalties such as fixed compensation.

Detailed Explanation

Section 18 of the Gujarat RERA Act provides for the payment of interest for any delayed possession of the property by the promoter. This means that if the builder fails to hand over the property within the agreed-upon timeframe, the homebuyer is entitled to receive interest on the amount paid for the period of delay. The rate of interest is typically mentioned in the agreement between the parties or as per the RERA rules.

Additionally, Rule 18 of the Gujarat RERA Rules allows for the imposition of a penalty on the promoter for any delay in handing over possession of the property. This penalty can take the form of fixed compensation or any other amount as determined by the RERA authority. The penalty amount is usually a percentage of the total cost of the property and is meant to compensate the homebuyer for the inconvenience caused by the delay.

In practice, homebuyers can file a complaint with the Gujarat RERA authority seeking both interest for delays and penalties for non-compliance by the builder. The RERA authority will then investigate the matter and determine the appropriate amount of interest and penalty based on the facts of the case.

Practical Examples

• Mr. Patel booked an apartment under RERA in Gujarat, but the builder delayed possession by 6 months. As per Section 18 of the Gujarat RERA Act, Mr. Patel is entitled to receive interest on the amount paid for those 6 months of delay.

• Ms. Shah filed a complaint with the Gujarat RERA authority against a builder who failed to deliver the property on time. The authority imposed a penalty on the builder as per Rule 18 of the Gujarat RERA Rules, providing fixed compensation to Ms. Shah for the delay.

References

• Section 18 of the Gujarat RERA Act

• Rule 18 of the Gujarat RERA Rules