18. Return of amount and compensation.—(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
1. Subs. by the Real Estate (Regulation and Development) Removal of Difficulties Order, 2016[S.O. 3347(E), for “occupancy”
(w.e.f. 28-10-2016).
18
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.
CHAPTER IV
RIGHTS AND DUTIES OF ALLOTTEESSource footnotes
Document extract. Section boundaries were matched to the arrangement of sections in the official source. Original formatting and footnote placement can differ; check the linked document.
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More sections of this act
Section 1 · Short title, extent and commencement.Section 2 · Definitions.Section 3 · Prior registration of real estate project with Real Estate Regulatory Authority.Section 4 · Application for registration of real estate projects.Section 5 · Grant of registration.Section 6 · Extension of registration.Section 7 · Revocation of registration.Section 8 · Obligation of Authority consequent upon lapse of or on revocation of registration.India Code, Government of India. Text fetched 14 Oct 2026. Check the linked official text and subsequent notifications when applying a provision.