Compliance · Buyer Disputes⚖️ Updated 9 Nov 2026 · ⏱ 8 min read
RERA Possession Delay Interest The Rate in 10 Major States
Section 18 gives the right; your state's rules set the number. This is the companion to our possession delay guide: the formula state by state, the refund deadline, and a calculator.
Quick Answer
Most states set delay interest at SBI's highest MCLR + 2%, which is 10.95% a year on SBI's rates from 15 October 2026. We confirmed this in the rules of Maharashtra, Haryana, Punjab, Karnataka, Telangana and Tamil Nadu. Uttar Pradesh uses MCLR + 1% (9.95%). Interest is on the full amount paid, for every month of delay.
At a Glance
Right to interest:Section 18(1)
Who sets the rate:State RERA rules
Usual formula:SBI highest MCLR + 2%
SBI highest MCLR:8.95% (from 15 Oct 2026)
Rate today (most states):10.95% a year
Uttar Pradesh:MCLR + 1% = 9.95%
The Rate, State by State
"Confirmed" means we read the rule text from the state's own rules or an official RERA page. "Reported" means we found it only in a secondary source, such as a reproduction of the rules or a press report of an order. For anything marked "Check state rules", open the rules on the state Authority's website before quoting a figure.
SBI highest MCLR + 2%, Rule 18, Tamil Nadu Rules 2017 Confirmed
10.95%
90 days, Rule 19 Confirmed
Rajasthan
SBI MCLR + 2%, applied by the Rajasthan Appellate Tribunal on 25 Oct 2024 under the 2017 Rules Reported
10.95%
45 days Reported
The "today" column uses SBI's highest MCLR (the 3-year tenor) of 8.95% from 15 October 2026. The refund deadline runs from the date the refund, interest and compensation become due, usually the date fixed in the Authority's order. Several rules also say that if SBI stops using MCLR, the benchmark lending rate SBI sets for lending to the public takes its place.
The figure moves
SBI revises MCLR regularly, and Authorities usually apply the rate in force on the date of their order. Check SBI's MCLR page before quoting a number, and expect the final figure in an order to reflect the rate on that day.
The Same Rate Works Both Ways
Section 2(za) of the Act makes the rate a promoter charges a buyer for late payment equal to the rate the promoter pays the buyer for its own delay. So the state figure above is also what a buyer pays on a late instalment. For that side of the rule, see interest on delayed payment by a buyer.
Worked Example and Calculator
A buyer in Karnataka has paid ₹60,00,000. Possession was due on 31 March 2025 and is offered, with an occupancy certificate, on 30 September 2026: 18 months late. At 10.95% a year:
This is simple interest on the full amount paid, which is how most orders are framed. If payments were made over time, interest on each payment can only run from the later of the agreed possession date or the payment date. Check your agreement for any grace period before counting months.
Each state runs its own complaint portal and fee. Start from our list of official RERA websites.
2
Forfeiture on buyer cancellation
Caps differ: MahaRERA limits deductions to 2% and HRERA Gurugram to 10% of the consideration. See refund on cancellation.
3
Model agreement wording
The possession date, grace period and interest clauses come from each state's model agreement for sale. See agreement for sale under RERA.
If You're an Agent
A buyer in a delayed project will ask you what they are owed. Give them the formula, not a promise:
☐ Name the state rule and the formula (for example, SBI highest MCLR + 2%), then today's figure, and say it can change.
☐ Count months from the agreed possession date, after any written grace period, not from the booking date.
☐ Explain the choice: stay and take monthly interest, or withdraw for a full refund with interest under Section 18.
☐ Do not estimate compensation beyond interest; that is for the Adjudicating Officer.
☐ Check the project's quarterly updates on the state RERA portal before advising a client to wait.
RERACertified sells the RERACertified™ Professional (RCP) course, whose state tracks cover each state's rules, interest provisions and complaint process. RCP is a private professional certification. It does not replace state RERA agent registration.
Frequently Asked Questions
What is the RERA interest rate for delayed possession in my state?
It is set by your state's RERA rules. Maharashtra, Haryana, Punjab, Karnataka, Telangana and Tamil Nadu prescribe SBI's highest MCLR plus 2%, and Delhi and Rajasthan are reported to use the same formula. Uttar Pradesh uses SBI MCLR plus 1%. With SBI's highest MCLR at 8.95% from 15 October 2026, that is 10.95% a year in the MCLR + 2% states and 9.95% in UP.
How is monthly delay interest calculated?
Take the total amount you have paid, multiply by the annual rate, and divide by 12. On ₹60 lakh paid at 10.95%, that is ₹54,750 for each month of delay. Authorities work it out from the agreed possession date until possession is actually offered with an occupancy certificate, and usually apply the rate in force on the date of the order.
Is the interest rate the same if I withdraw instead of waiting?
In most states, yes. The rate in the rules applies both to a refund under Section 18 and to monthly interest if you stay. What changes is the period: on a refund, interest runs from the date of each payment until the refund is paid.
Does the grace period in my agreement count as delay?
Usually not, if the grace period is written into the agreement and the Authority accepts it. Many Authorities start the delay from the end of an agreed grace period. A grace period that is not in the agreement, or a vague force majeure claim, can be rejected.
Which SBI MCLR is used, and does it change?
The rules refer to SBI's highest MCLR, which is currently the 3-year rate. Most rules say that if MCLR is no longer used, it is replaced by the benchmark lending rate SBI sets for lending to the public. Because SBI revises MCLR from time to time, the figure in an order depends on the rate on the date of that order.
How fast must the builder pay a refund after an order?
Each state sets a deadline from the date the refund becomes due. Confirmed examples: Maharashtra 30 days (as reported), Karnataka 60 days, Punjab 90 days, Tamil Nadu 90 days. If it is not paid, the Authority can recover it as arrears of land revenue under Section 40 of the Act.
My state is not in the table. What do I do?
Open your state's RERA rules on the Authority's website and look for the rule headed "rate of interest payable by the promoter and the allottee", usually Rule 15 to 18. Most states use SBI's highest MCLR plus 2%, but a few use a different benchmark.
Official Sources
Real Estate (Regulation and Development) Act 2016, Sections 2(za), 18, 19(4), 40 and 71.
Maharashtra Real Estate Rules 2017, Rules 18–19; Haryana Real Estate Rules 2017, Rule 15; Punjab State Real Estate Rules 2017, Rules 16–17; Karnataka Real Estate Rules 2017, Rules 16–17; Tamil Nadu Real Estate Rules 2017, Rules 18–19 (tn.gov.in); Telangana RERA FAQ on Rule 15 (rera.telangana.gov.in); Uttar Pradesh Real Estate (Agreement for Sale/Lease) Rules 2018, Rules 9.2–9.3.
Reported: Delhi Real Estate Rules 2016, Rules 15–16, and refund deadlines for Haryana, UP, Telangana and Rajasthan, from a state-wise reproduction of the rules (TaxGuru, Jan 2019); Rajasthan REAT order of 25 Oct 2024 (LiveLaw).
State Bank of India, MCLR rates effective 15 October 2026 (sbi.co.in).
Change Log
Nov 9, 2026: Page published with 10 states, using SBI's MCLR from 15 October 2026 (highest, 3-year: 8.95%).
Know Your State's Rules, Not Just the Act
RERACertified™ Professional (RCP) pairs 12 India Core modules with a state track covering your state's rules and forms.