For decades, Non-Resident Indians (NRIs) investing in Indian real estate were at the mercy of opaque builder contracts and endless project delays. The implementation of the Real Estate (Regulation and Development) Act (RERA) in 2016 fundamentally shifted the balance of power.
Understanding how to wield RERA is essential for any NRI whose capital is locked in an under-construction project in India. It provides a structured, legally binding mechanism to demand accountability, interest on delays, or even a full refund.
1. What is RERA and How Does It Help NRIs?
RERA is a central law designed to bring transparency and efficiency to the real estate sector. Each state has its own RERA authority (e.g., MahaRERA, UP RERA) where projects must be registered.
For NRIs, the most significant advantage is the establishment of a dedicated appellate tribunal. You no longer have to navigate the sluggish civil court system; RERA complaints are fast-tracked and heavily favor the allottee (buyer) when builders breach contract terms.
Structural Strategy Tip
A builder's verbal assurances about a "revised possession date" are legally meaningless. If your possession date as per the registered Agreement to Sale has passed, your right to claim a refund or interest is already active under Section 18 of RERA.
Map your structural compliance flow2. Tackling Builder Delays
Under Section 18 of the RERA Act, if a builder fails to complete or is unable to give possession of an apartment by the date specified in the agreement, the allottee has two distinct choices:
- Withdraw from the Project (Refund): You are entitled to the return of your entire principal amount along with interest at a prescribed rate (usually SBI Marginal Cost of Lending Rate plus 2%).
- Stay in the Project (Interest): If you choose not to withdraw, the builder must pay you interest for every month of delay until the possession is formally handed over.
3. Filing a Complaint from Abroad
Many NRIs hesitate to enforce their rights assuming they must be physically present in India. This is a misconception.
You can appoint a trusted friend, family member, or a specialized legal representative to file and argue the case on your behalf using a Specific Power of Attorney (PoA).
This PoA must be drafted carefully, notarized, and usually apostilled or attested by the Indian Consulate in your country of residence before being sent to India for adjudication.
The initial complaint filing is done entirely online through the state's RERA website. Uploading scanned copies of the Agreement to Sale, payment receipts, and the PoA forms the foundation of the case.
4. RERA vs. Consumer Courts
Before RERA, the National Consumer Disputes Redressal Commission (NCDRC) was the primary forum for builder disputes. While you generally cannot actively litigate in both forums simultaneously for the same relief, RERA is almost always the superior choice today because:
- Specialization: RERA exclusively handles real estate, whereas consumer courts handle all types of consumer complaints, leading to backlogs.
- Execution Mechanisms: RERA authorities have stronger mechanisms to attach builder properties or bank accounts if they fail to comply with refund orders.
5. NRI RERA Action Checklist
If your project is delayed, assemble this structured dossier before filing:
- Original/Notarized Agreement to Sale
- Bank statements proving all transfer of funds/EMIs.
- Copies of correspondence/emails with the builder regarding delays.
- Drafted and Apostilled Power of Attorney if litigating from abroad.
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Key Takeaways
- RERA gives you a legal framework to demand refunds for delayed projects.
- You don't need to visit India if you use an Apostilled Power of Attorney.
- Verbal extensions by the builder mean nothing; enforce the written contract.