(1) If the promoter fails to complete or is unable to give possession of an apartment, plot or building,--
(a) in accordance with the terms of the agreement for sale or, as the case may be, duly completed by the date specified therein; or
(b) due to discontinuance of his business as a developer on account of suspension or revocation of the registration under this Act or for any other reason,
he shall be liable on demand to the allottees, in case the allottee wishes to withdraw from the project, without prejudice to any other remedy available, to return the amount received by him in respect of that apartment, plot, building, as the case may be, with interest at such rate as may be prescribed in this behalf including compensation in the manner as provided under this Act:
Provided that where an allottee does not intend to withdraw from the project, he shall be paid, by the promoter, interest for every month of delay, till the handing over of the possession, at such rate as may be prescribed.
(2) The promoter shall compensate the allottees in case of any loss caused to him due to defective title of the land, on which the project is being developed or has been developed, in the manner as provided under this Act, and the claim for compensation under this subsection shall not be barred by limitation provided under any law for the time being in force.
(3) If the promoter fails to discharge any other obligations imposed on him under this Act or the rules or regulations made thereunder or in accordance with the terms and conditions of the agreement for sale, he shall be liable to pay such compensation to the allottees, in the manner as provided under this Act.
Legal Commentary & Landmark Judgments: Section 18
Section 18 of RERA confers an unqualified statutory right upon allottees to claim an immediate, full refund of their investment with interest if the promoter fails to complete or give possession of the apartment in accordance with the terms of the agreement for sale.
Sub-section (3) provides compensation for failure to discharge any other obligation under the Act.
Section 18 dismantled developer arguments relying on force majeure, contractor defaults, or administrative delays. The statutory interest rate prescribed under state RERA Rules (usually State Bank of India highest marginal cost of funds-based lending rate plus two percent) must be awarded automatically from the promised possession date until actual refund or delivery.