Short answer: Consumer court or RERA for builder delay? For a registered project, K-RERA is usually the simpler route to delay interest or a refund. A consumer commission suits wider compensation claims or unregistered projects. Civil courts can't hear matters RERA can decide, so they're mainly for title and third-party disputes. Pick one forum per claim.
- RERA: delay interest or refund with interest under s.18; K-RERA's rate is SBI's highest MCLR plus 2%.
- Consumer commissions: District up to ₹50 lakh paid, State up to ₹2 crore, National above that.
- Civil courts: barred from matters RERA can decide (s.79); useful for title and disputes outside RERA.
- One cause, one forum: the Supreme Court has said you can't pursue RERA and a consumer forum for the same cause of action in sequence or parallel (news report).
- Time limits differ: consumer complaints generally within two years of the cause of action.
- Our FORUM check: facts and relief, owner type, registration, units of money, make one election.
- What does each forum do?
- What can K-RERA give you for a delay?
- Worked example 1: delay interest at the K-RERA rate
- Which consumer commission hears your case?
- Worked example 2: same flat, different forum
- Can you go to both RERA and a consumer forum?
- When does a civil court come in?
- Do arbitration clauses or taking possession block a claim?
- What about time limits?
- Is there a quicker route than a hearing?
- The FORUM check (our framework)
- Checklist before you file
- What mistakes do buyers make?
- What should you do if...
- Method notes and limits
- Related reading
- Frequently asked questions
- Talk it through with acre&key
- Sources
When a builder misses the possession date, holds back a refund or hands over a flat with defects, you have three places to go: the Karnataka RERA authority, a consumer commission, or a civil court. Each can help in some cases and not in others. This guide sets out what each offers, the limits that decide which one fits, and how to avoid losing a claim by filing in the wrong place.
What does each forum do?
| K-RERA (Authority or Adjudicating Officer) | Consumer commission | Civil court | |
|---|---|---|---|
| Law | RERA Act 2016 | Consumer Protection Act 2019 | Civil Procedure Code and general law |
| Who can file | Allottees and other aggrieved persons (s.31) | "Consumers"; buying for commercial purpose excluded | Anyone with a civil claim |
| Main reliefs | Delay interest, refund with interest, compliance orders; compensation via the Adjudicating Officer | Refund, interest, compensation for deficiency in service, defect repair | Title, injunctions, declarations, specific performance where RERA doesn't apply |
| Money limits | None | By amount paid: ₹50 lakh / ₹2 crore tiers | Court fee and court hierarchy by value |
| Target timeline | 60 days for the Authority and the Adjudicating Officer (ss.29(4), 71(2)), with reasons if exceeded | Endeavour to decide in 3 to 5 months | No fixed target |
| Appeals | Appellate Tribunal, then High Court; a promoter must deposit at least 30% of the penalty or the full amount due to the allottee first (s.43(5)) | State, then National Commission, then Supreme Court | Higher courts |
Sources: RERA Act; PIB on consumer jurisdiction rules, 30 Dec 2021.
What can K-RERA give you for a delay?
Under s.18, if the promoter fails to hand over on time, you can withdraw and get your money back with interest and compensation, or stay and get interest for every month of delay until possession. K-RERA's interest rate is set by Rule 16 of the Karnataka RERA Rules at SBI's highest MCLR plus 2%, which was 10.95% on SBI's rates from 15 October 2026. See our s.18 guide for the details.
Compensation claims (as opposed to interest) go to the Adjudicating Officer under s.71. If you have a complaint about delay, defects or refunds already pending before a consumer forum, s.71(1) lets you withdraw it and apply to the Adjudicating Officer instead. File online through the portal; our answer on filing a K-RERA complaint walks through it.
Worked example 1: delay interest at the K-RERA rate
You've paid ₹60 lakh, and possession is 14 months late. Illustrative, on a flat balance.
| Step | Amount |
|---|---|
| Amount paid | ₹60,00,000 |
| Rate (SBI highest MCLR 8.95% + 2%) | 10.95% a year |
| Monthly interest | ₹54,750 |
| For 14 months | ₹7,66,500 |
Real orders calculate interest payment by payment, from the date possession was due, and the rate moves with SBI. Your figure will differ. If the builder offers a lump sum to settle, compare it with this number.
Which consumer commission hears your case?
Since 30 December 2021, it depends on the value of what you've paid as consideration (PIB):
| Amount paid | Forum |
|---|---|
| Up to ₹50 lakh | District Commission |
| Over ₹50 lakh, up to ₹2 crore | State Commission |
| Over ₹2 crore | National Commission |
Worked example 2: same flat, different forum
Three buyers in one project, each with a ₹90 lakh flat, at different payment stages:
| Buyer | Paid so far | Consumer forum | K-RERA |
|---|---|---|---|
| A | ₹40,00,000 | District Commission | K-RERA |
| B | ₹65,00,000 | State Commission | K-RERA |
| C | ₹90,00,000 | State Commission | K-RERA |
The consumer forum changes with what's been paid; K-RERA doesn't. Your lawyer will confirm how the value is counted in your case, for example whether interest claimed is included.
Can you go to both RERA and a consumer forum?
RERA says its provisions are "in addition to, and not in derogation of" other laws (s.88). The Supreme Court held in Imperia Structures v Anil Patni (2020) that RERA doesn't bar a consumer complaint. But a March 2026 Business Standard report describes a Supreme Court ruling in Kabra and Associates v Rekha Rajkumar Hemdev that once you choose RERA, you can't later go to a consumer forum for the same cause of action (Business Standard, news). We haven't read that judgment ourselves. The practical rule: choose one forum for each cause of action, with your lawyer, before filing.
When does a civil court come in?
Section 79 of RERA says no civil court can hear any matter the Authority, Adjudicating Officer or Appellate Tribunal is empowered to decide. So delay, refund and promoter-obligation disputes in a registered project go to RERA, not a civil suit.
Civil courts still matter for disputes outside RERA: title fights with third parties, injunctions over land, disputes with a resale seller (who isn't a promoter), and claims RERA can't handle. For resale purchases, our legal checks guide covers what to verify so you don't need one.
Do arbitration clauses or taking possession block a claim?
The Indian Express reported in 2026 that the Supreme Court held a buyer who accepts delayed possession doesn't automatically lose the right to delay compensation, and that a consumer complaint can't be diverted to arbitration just because the agreement has an arbitration clause (Indian Express, news). Don't sign a possession letter that waives your claims without legal advice; see our final checks before possession.
What about time limits?
A consumer complaint must generally be filed within two years of the cause of action, though commissions can condone delay for sufficient cause (Business Standard). RERA's Act doesn't set a comparable limit for complaints in the text we hold. Courts have treated delay in possession as a continuing wrong in some cases, but don't rely on that; act early.
Is there a quicker route than a hearing?
Often, yes. Start with a written notice to the builder setting out the delay, the amount you've paid and the interest you're claiming, with a deadline to respond. Many disputes settle at this stage. The Consumer Protection Act 2019 also provides for mediation (Chapter V), and a commission can refer a case to it if both sides agree. A settlement should state exactly what you're giving up, and nothing more.
The FORUM check (our framework)
- F: Facts and relief. Do you want interest, a refund, compensation, repairs, or a title order?
- O: Owner type. Bought for your own use (consumer) or as an investment or business (may be excluded from consumer forums)?
- R: Registration. Is the project registered on K-RERA? Check it on the portal (how to check).
- U: Units of money. How much have you paid? That decides the consumer tier.
- M: Make one election. One forum per cause of action, chosen with your lawyer.
Checklist before you file
- [ ] Agreement for sale, allotment letter and payment receipts gathered
- [ ] Possession date in the agreement and on K-RERA noted
- [ ] RERA registration number and quarterly updates saved
- [ ] All letters and emails with the builder in one file
- [ ] Amount paid totalled, with dates
- [ ] Relief you want written down: interest, refund, compensation, repairs
- [ ] Your purpose noted: own use or investment
- [ ] Two-year consumer limit checked against your dates
- [ ] Any earlier complaint, in any forum, disclosed to your lawyer
- [ ] Lawyer's view on the forum before filing
What mistakes do buyers make?
- Filing in two forums for the same cause of action.
- Waiting too long and running into the consumer limitation period.
- Signing a possession letter that waives delay claims.
- Taking a civil suit for something RERA can decide.
- Overstating the claim value and landing in the wrong commission.
- Not keeping payment records with dates.
What should you do if...
...the project isn't registered on K-RERA? A consumer commission or civil court may be the route. Ask your lawyer.
...you bought the flat as an investment? You may not count as a "consumer". RERA is open to allottees regardless of purpose.
...the builder extended its RERA registration? An extension doesn't change your agreement date. See our answer on RERA extensions.
...you're paying EMIs on a delayed flat? See who pays EMIs during a construction delay.
...the builder offers a settlement? Compare it with the interest you'd be owed, and get it in writing with a clear waiver scope.
...the dispute is over defects after possession? RERA s.14(3) gives five years from possession to report defects. Start there if the project is registered.
Method notes and limits
- RERA points are from the Act's text (ss.18, 29(4), 31, 43(5), 71, 79, 88). The K-RERA interest rate is from our verified s.18 guide.
- Consumer commission limits are from the 2021 rules as announced by PIB. The two-year limit and the Kabra ruling are from Business Standard (news); we haven't read the judgments ourselves.
- The arbitration and possession points are from an Indian Express explainer (news).
- Interest figures are illustrative.
Lawyer note: Forum choice, limitation and the scope of any waiver are legal questions with lasting effects. Get a lawyer's advice before you file or sign a settlement.
Related reading
Frequently asked questions
For a registered project and a claim for delay interest or a refund, K-RERA is usually simpler and has no money limits. For wider compensation, or an unregistered project, a consumer commission may suit better. Ask your lawyer about your facts.
Not for the same cause of action. A 2026 news report describes a Supreme Court ruling that once you choose RERA, you can't then go to a consumer forum for the same claim. Choose one.
It depends on the amount you've paid: up to ₹50 lakh goes to the District Commission, over ₹50 lakh to ₹2 crore to the State Commission, and over ₹2 crore to the National Commission.
Rule 16 of the Karnataka RERA Rules sets it at SBI's highest MCLR plus 2%. On SBI's rates from 15 October 2026, that's 10.95% a year.
Generally no, for a registered project. RERA s.79 bars civil courts from matters RERA can decide. Civil courts remain for title and other disputes outside RERA.
Consumer complaints generally must be filed within two years of the cause of action, with delay condonable for sufficient cause. Act early whichever forum you choose.
Not automatically, according to a 2026 news report of a Supreme Court ruling. Avoid signing waivers at possession without legal advice.
The Act asks the Authority and the Adjudicating Officer to decide within 60 days and record reasons if they can't. Actual times vary.
Sources
- Real Estate (Regulation and Development) Act, 2016 (India Code): https://www.indiacode.nic.in/handle/123456789/2158
- PIB, Consumer Protection (Jurisdiction) Rules, 2021, 30 Dec 2021: https://www.pib.gov.in/PressReleasePage.aspx?PRID=1786342
- Business Standard, Choosing between RERA and consumer court, Mar 2026 (news): https://www.business-standard.com/finance/personal-finance/choosing-between-rera-and-consumer-court-for-action-against-builders-dues-126031000784_1.html
- Indian Express, Supreme Court on compensation despite delayed possession (news): https://indianexpress.com/article/explained/explained-law/supreme-court-homebuyer-delay-compensation-ruling-10765670/
- Karnataka RERA Rules 2017 (Rule 16): https://rera.karnataka.gov.in/resources/staticpage/FinalRERA_Rules-2017.pdf
