Buyer can still claim interest for delay even if extension of the project registration/completion date is granted by the Real Estate Regulatory Authority (RERA authority), but it depends on the nature and validity of the extension.

General Legal Position under RERA

Under the Real Estate (Regulation and Development) Act, 2016:

• The promoter is liable to complete and hand over possession as per the agreed date in the Agreement for Sale.
• If there is delay, the allottee can:
  • seek interest for delayed possession, or
  • withdraw and claim refund with interest.

Effect of Extension Granted by RERA

1. Extension due to Force Majeure

If RERA grants extension because of:

• war,
• flood,
• pandemic,
• natural calamity,
• government restrictions,
• circumstances beyond promoter’s control,

then generally:

• the extended period may be treated as valid,
• buyers may not get interest for that specific extended period,
• especially when the extension order specifically protects the promoter.

Example:
COVID-19 extensions granted by many State RERAs were usually treated as force majeure periods.

2. Ordinary Administrative Extension

If extension is granted merely because:

• construction is incomplete,
• financial issues,
• approvals delayed due to promoter,
• poor planning,
• lack of funds,

then buyers can still claim interest for delay because:

• extension of registration does not automatically extinguish contractual rights of allottees,
• RERA extension is regulatory relief, not automatic waiver of buyer compensation.

Many RERA authorities and courts have held that:

Extension of project registration and liability for delay compensation are separate matters.

Important Point: Agreement for Sale Prevails

The possession date mentioned in:

• Builder Buyer Agreement / Agreement for Sale,
  is very important.

If the builder fails to deliver by that date (subject to valid force majeure clauses), buyers can seek:

• interest under Section 18 of RERA,
• compensation for delay,
• or refund.

Judicial Trend

Courts and RERA authorities generally examine:

• reason for delay,
• whether extension was legally justified,
• whether buyer consent existed,
• force majeure applicability,
• terms of agreement.

If delay is attributable to promoter negligence, interest is commonly awarded despite extension.

Practical Position

Key Sections

• Section 6 – Extension of registration
• Section 18 – Return of amount and compensation
• Section 19 – Rights of allottees