The interest for delayed possession in Haryana isn't arbitrary — it's the State Bank of India's highest MCLR plus 2%. Recent HRERA orders work out to roughly 10-11%, and the same rate applies both ways.
In plain words: the interest a builder must pay you for delayed possession in Haryana is not whatever the builder's agreement says. It is fixed by the rules — the State Bank of India's highest Marginal Cost of Lending Rate (MCLR) plus 2% — which recently works out to roughly 10-11%.
The problem
When a project is delayed, builders often point to a token 'penalty' in the agreement — a few rupees per square foot per month — and offer that instead of real compensation. That is not what the law entitles you to.
What RERA says
- The prescribed rate. Under the Haryana RERA Rules, the rate of interest payable for delay is the SBI highest MCLR + 2%. HRERA applies this rate, not the builder's token penalty.
- It is symmetrical. RERA defines the interest so that the same rate applies both ways — the builder pays you the same rate it would charge you if you defaulted on a payment. No more one-sided deals.
- Interest runs for the whole delay. Under Sections 18 and 19, interest is payable for every month of delay until possession (or on the refund, if you withdraw).
What you can do, step by step
- Do not accept the builder's token 'penalty' as full and final.
- Work out the delay interest at the prescribed rate from the agreed possession date.
- Claim it before HRERA Gurugram as part of your Section 18 complaint.
How Vakil Help Desk helps
We compute exactly what you are owed at the correct rate and recover it before HRERA — not the token figure a builder offers. If you have been offered a tiny 'penalty' for a long delay, contact Vakil Help Desk.
General information on RERA, not legal advice.