Builder Booking Amount Refund: RERA or Consumer Court?
When a builder will not return your booking money you have two doors: RERA and the consumer commission. Here is how to choose.
If a builder will not give you a booking amount refund, you can go to either of two places: the state RERA authority or the Consumer Commission. Many buyers do not know they have a choice. This guide explains both, what the Supreme Court has said, and how to decide.
The two routes
RERA, the Real Estate (Regulation and Development) Act, has a state level authority that hears complaints from allottees, including for refund when a project is delayed. The Consumer Protection Act, 2019 gives you another route: a complaint to the District, State or National Commission alleging deficiency in service.
What the Supreme Court said
In Imperia Structures v. Anil Patni, decided in November 2020, the Supreme Court held that RERA does not bar a buyer from approaching a Consumer Commission. Section 79 of RERA bars civil courts, not consumer forums. The Court said the allottee has a choice whether to proceed under the Consumer Protection Act or under RERA. In that case, the NCDRC had directed the developer to refund the amounts deposited with simple interest at 9 per cent per year from the dates of deposit, with costs. That was the outcome in that case. Your outcome depends on your facts.
How to choose
Think about these points.
- Where is the project registered? RERA procedures and forms differ by state, so look at your state authority's process.
- What do you want? A refund with interest is available in both. A Commission can also award compensation.
- How fast is each in your area? Check how long your state authority and your local Commission are taking, rather than relying on general claims.
- Cost. Consumer complaints up to ₹5 lakh have no fee, and the full table is in our consumer court fees guide.
Do not pursue the same relief in both places at once. Pick one route and stay with it.
Which Commission
The Commission depends on the amount you paid. District covers up to ₹50 lakh, State above ₹50 lakh up to ₹2 crore, and National above ₹2 crore. A flat priced above ₹50 lakh will therefore often go to the State Commission. See which consumer commission to approach.
What to claim
Claim the amount you paid, interest from the date of each payment, compensation for the delay and distress, and the costs of the case. Set out each payment with its date in a table so the Commission can follow it.
Documents you need
- the builder buyer agreement and the booking form,
- receipts for each payment,
- the promised possession date and any extension letters,
- the project's RERA registration number,
- your emails and letters to the builder.
Send a notice first
Write to the builder demanding the refund and giving 15 days. See our consumer complaint letter guide.
Watch the time
Two years from the cause of action under Section 69. Delay in giving possession is often argued as a continuing problem, but that is for the Commission to decide, so do not rely on it. See the time limit guide.
A booking amount refund is available through either door, so choose the one that fits your project and your state.
Frequently asked questions
Can I file in the consumer commission if the project is RERA registered?
Yes. The Supreme Court held in Imperia Structures that RERA does not bar consumer complaints.
Which is faster, RERA or the commission?
It varies by state and by the Commission. Check your state authority's pendency.
Can I get interest on my booking amount?
You can claim interest from each payment date. The rate is set by the forum you choose.
Which Commission do I approach?
By the amount paid: District up to ₹50 lakh, State above ₹50 lakh to ₹2 crore, National above ₹2 crore.
What is the time limit?
Two years under Section 69, with delay condoned only for sufficient cause.
Sources
Start your complaint
Ready to file? Start your complaint with Jagrik AI or read our consumer complaint guide for the full walkthrough.
This is general information, not legal advice. Jagrik AI is an independent tool, not operated by or affiliated with the Government of India. It helps you prepare, and does not replace a lawyer for complex cases.