Has your real estate developer delayed possession of your flat? Here's how homebuyers can manage the EMI and rent burden
Housing project delays can hit homebuyers hard, forcing them to pay both EMIs and rent. Managing this dual burden needs careful financial planning
Buying a home is often the biggest financial decision of one’s life. But for 32-year-old Diya Ganguly from Gurugram, it turned into a nightmare. In 2019, she booked a flat on Sohna Road, hoping to move in by 2021. Then the pandemic hit. Construction came to a halt, updates stopped, and she was left juggling EMIs and rent while waiting endlessly. It's now 2025, and the flat remains unfinished, with no clear possession date in sight. Ganguly’s ordeal mirrors the struggles of many homebuyers whose dream homes remain stuck in limbo due to project delays.
Under RERA, buyers can claim interest for delays
The Real Estate Regulatory Authority (RERA) provides support for homebuyers in such cases. Let us take a look.
“Under RERA, if a developer delays possession beyond the promised date as mentioned in the agreement for sale, the homebuyer is entitled to seek refund of the entire amount paid along with interest (usually SBI MCLR + 2%) by filing a complaint before the RERA Authority. If the buyer chooses to withdraw from the project, the promoter must return the entire amount paid along with interest as per the provisions of the Act,” says Piyush Bothra, co-founder and CFO, Square Yards.
However, if the buyer does not intend to withdraw from the project, the promoter is required to pay monthly interest for every month of delay until possession is handed over.
Additionally, if there’s any loss to the buyer due to a defective title of the land or fails to discharge any other obligations imposed on the promoter under the RERA, the promoter must compensate the buyer, and such claims are not restricted by any limitation period under existing laws. “Moreover, if the promoter fails to meet any other obligations under RERA, its rules, or the sale agreement, they are also liable to compensate the buyer as per the Act,” says Bothra.
Financial impact of delayed possession
Managing financial affairs when possession of a house/flat is delayed, should be treated as an emergency situation as it creates a lot of hardship if the time stretches beyond comfort.
“This delay has a huge impact cost as the first challenge is to pay both EMI and rent. One faces a dual burden of paying EMIs and rent together. It is also not sure how much time this condition would prevail. This uncertainty disrupts other long term life plans,” says Madhupam Krishna, Securities and Exchange Board of India (Sebi) registered investment advisor (RIA) and chief planner, WealthWisher Financial Planner and Advisors.
Also Read: Navigating tax complexities: What resident Indians must know when buying property from NRIs
The first thing to do if your flat possession is delayed is to reassess your budget. Cut down on lifestyle expenses and shift to smaller housing if necessary. Explore freelance and other side income options. Build an emergency fund using SIPs in liquid funds or money in a savings account. Pause non-essential investments and if needed consider a loan moratorium or credit restructuring as a last resort. We look at three case studies to understand how they can manage their finances smartly in case of delayed possession of a property.
Delaying EMI payments would land you in trouble
Remember, you have entered into an agreement while taking the loan, and you are legally bound to repay the loan, and missing EMIs will immediately lead to a negative impact on your credit score. A poor credit record can not only affect your ability to get future loans or credit cards but may also invite legal action from the lender.
“After a few missed EMI installments, the lender can issue you notices to pay the EMI, and if you don’t clear the dues in the stipulated time and regularize your EMIs, the lender can classify your loan as a non-performing asset (NPA), initiate recovery proceedings, or even auction the property, because in almost all home loan cases, the property is given as collateral to secure the loan. Also, it’s a fact that delaying or defaulting on EMIs won’t influence the developer or speed up project completion, it only harms your own financial standing,” says Raoul Kapoor, co-CEO, Andromeda Sales and Distribution, a loan aggregator.
If you are facing such a situation, it is time to act. First check the builder-buyer agreement and look for possession clauses, penalty terms, and force majeure provisions. “Recollect all records of emails, notices, advertisements and project updates. If more people are impacted, join or form a group to increase collective bargaining power. Will legal aid send a legal notice to the builder to establish that you intend to seek remedy and initiate a formal dialogue,” says Krishna.
For the legal steps you can see below.
If your flat is delayed, smart budgeting and knowing your legal rights can help you manage the financial stress and stay on track.
Anagh Pal is a personal finance expert who writes on real estate, tax, insurance, mutual funds and other topics
