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Sectors · Real estate

Real estate and development

Developers, landowners, housing finance companies, contractors and individual purchasers meet the same body of law from different sides: the Real Estate (Regulation and Development) Act, 2016 and the state rules under it, the law of title and transfer, and the contracts that govern a project from the joint development agreement to the allotment letter.

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  • Real estate and RERA · · law stated as at 18 June 2026

    Delay under RERA runs from the date in the agreement for sale, not from the date the project was registered

    Section 18(1)(a) of the Real Estate (Regulation and Development) Act, 2016 fixes liability by reference to the terms of the agreement for sale and the date specified in it. The completion date a promoter declares to the authority at registration, and any extension of that registration, belong to a different obligation and do not move the date from which interest for delay is counted. Two decisions of the Bombay High Court in 2026 applied that distinction, and both ran the clock from the agreement.

  • Real estate and RERA · · law stated as at 7 November 2026

    An allottee can seek a refund with interest, delay interest, insolvency or a consumer award against a developer that has not delivered

    An allottee whose developer has not delivered a flat can ask, under section 18 of the Real Estate (Regulation and Development) Act, 2016 (RERA Act), either for the money back with interest or, staying in the project, for interest for every month of delay, at the rate in rule 16 of the Karnataka Real Estate (Regulation and Development) Rules, 2017, which is the State Bank of India highest marginal cost of lending rate plus two per cent. Compensation goes to an adjudicating officer under section 71, and an appeal lies to the Real Estate Appellate Tribunal within sixty days, where a promoter must first deposit the amount payable to the allottee, or at least 30 per cent of any penalty, or both, under the proviso to section 43(5). Money raised from an allottee is financial debt under section 5(8)(f) of the Insolvency and Bankruptcy Code, 2016 (IBC), so the allottee is a financial creditor under section 5(7), but a joint insolvency application needs 100 allottees of the project or 10 per cent of them, whichever is less. An allottee who bought the flat other than for a commercial purpose is a consumer under the Consumer Protection Act, 2019, and until an insolvency moratorium intervenes that route stays open alongside, before the District Commission up to INR 50 lakh paid, the State Commission up to INR 2 crore and the National Commission above that.

Reference

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Practice areas that apply

Advocates in this sector

  • Adv. Adithya Karthik K

    BBA, MBA (International Business), LL.B., LL.M. (Corporate & Commercial Law), Diploma in Banking & Insurance Law, PG Diploma in IP Law (NLSIU)

Other notes in this sector

Practice: RERA and real estate · Projects and land · Civil disputes · Contracts and procurement · Insolvency · Banking, SARFAESI and DRT · Transaction advisory · Matrimonial and family