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Allottee has the discretion to seek refund in case of delay from Promoter

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The U.P. Real Estate Appellate Tribunal reaffirmed that under Section 18 of the RERA Act, the right to seek refund in case of delay vests exclusively with the allottee and remains unqualified. Even in the absence of a formal Builder Buyer Agreement, a promoter cannot evade liability where delay in completion is established. The decision underscores that once the allottee opts to withdraw, the promoter is bound to refund the entire amount with statutory interest, reinforcing the consumer-centric framework of the Act.

Return of Money order can be made only at the interest rate prescribed in the RERA Act and Rules at MCLR+1%

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The U.P. Real Estate Appellate Tribunal clarified that interest on refund under the RERA framework must align with the statutory rate prescribed in the Act and Rules, i.e., MCLR + 1%, and not arbitrary contractual rates such as 24%. Emphasising the consumer-protective scheme of the Act, the Tribunal held that interest under Section 18 is compensatory in nature and must balance equities between promoter and allottee, ensuring fairness while rejecting one-sided contractual stipulations.