What does the law say about delay interest?

Section 18(1) of the RERA Act gives a buyer two routes when the promoter misses the possession date in the agreement. You can withdraw and take a refund with interest and compensation. Or, under the proviso, if you do not withdraw, the promoter must pay interest for every month of delay until possession is handed over, at the rate the state prescribes.

Haryana prescribes it in Rule 15 of the Haryana Real Estate (Regulation and Development) Rules, 2017. HRERA and Appellate Tribunal orders describe it as the SBI highest MCLR plus 2%. For example, a Tribunal order decided on 5 June 2025 (Appeal No. 534 of 2024) quotes an earlier order at that formula, which 'as on date works out to 10.35%'.

The RERA Act also makes the rate symmetric. Section 2(za) says the interest a promoter can charge a buyer for late payment must equal the interest the promoter pays the buyer for its default.

What is the HRERA interest rate in October 2026?

SBI's MCLR page, updated 15 October 2026, lists these revised rates: overnight and one month 7.85%, three months 8.40%, six months 8.75%, one year 8.85%, two years 8.90% and three years 8.95%. The previous three-year rate was 8.80%.

  • Highest MCLR before 15 Oct 2026: 8.80% + 2% = 10.80%
  • Highest MCLR from 15 Oct 2026: 8.95% + 2% = 10.95%

Which rate applies to my case?

Orders fix the rate 'as on date' of the order. That is why older orders show 9.30%, 10.20%, 10.35% or 10.85%. Once your order is passed, the rate in it applies to your whole delay period; you do not get a new rate each time SBI moves. If your complaint is pending, the order will use the rate on the day it is passed.

The rate cuts both ways. Under Section 2(za), any late-payment interest you owe the promoter should be at the same rate.

From when to when does interest run?

  • Start: the due date of possession in your builder-buyer agreement, including any grace period the agreement allows and the authority accepts.
  • End: the offer of possession plus two months, or actual handover, whichever is earlier. The Tribunal's 24 July 2026 order (Appeal No. 624 of 2022) ran interest to 'expiry of 2 months from the date of offer of possession'.
  • The offer must be valid. A valid offer follows an occupation certificate. A February 2026 HRERA order treated an offer made under a conditional OC as not legally valid.
  • Base: the amount you paid to the promoter, not the full sale price.
  • Payment: arrears within 90 days of the order (Rule 16(2)), and monthly interest after that until possession, usually by the 10th of each month.

Worked example: a flat delayed by 21 months

Assume you paid ₹80,00,000 by the due date of 1 January 2025. The promoter offers valid possession on 1 August 2026. Interest runs to 1 October 2026 (offer plus two months), which is 21 months.

  • At 10.95%: 80,00,000 × 10.95% = ₹8,76,000 a year, or ₹73,000 a month. 21 × 73,000 = ₹15,33,000.
  • At 10.80%: 80,00,000 × 10.80% = ₹8,64,000 a year, or ₹72,000 a month. 21 × 72,000 = ₹15,12,000.
  • Difference from the October 2026 revision on this case: ₹21,000.

Second example, instalments paid after the due date. Many buyers keep paying demands after the due date. Say ₹60,00,000 was paid before the due date and ₹20,00,000 was paid 6 months later. Interest on the first part runs the full 21 months; on the second part, ask for interest from the date you paid it, 15 months.

  • ₹60,00,000 × 10.95% ÷ 12 = ₹54,750 a month × 21 = ₹11,49,750
  • ₹20,00,000 × 10.95% ÷ 12 = ₹18,250 a month × 15 = ₹2,73,750
  • Total: ₹14,23,500

Orders have handled post-due-date payments in different ways, and the basis can be argued on appeal, so put your payment schedule with dates in the complaint and let the authority decide.

What gets deducted?

  • Any delay compensation the promoter already paid or credited under the agreement. The July 2026 Tribunal order directed that amounts already paid as delay compensation be adjusted.
  • Your own outstanding dues at the time of possession, after adjusting the interest owed to you.
  • Late-payment interest you owe, at the same rate under Section 2(za).

Interest or refund: which should you choose?

Delay interest keeps you in the project. A refund with interest gets you out. The choice affects what else you can claim: the Appellate Tribunal held on 24 July 2026 that buyers who stay and take delay interest are not entitled to additional compensation for the same delay. If you think you may want out, decide before you file. We explain this in Delay Compensation Haryana RERA: 2026 Rules for Gurugram.

For filing steps, see How to File a Haryana RERA Complaint in Gurugram: Process, Fee and Documents. If the promoter does not pay after the order, see HRERA Recovery Certificate Gurugram: 2026 Steps to Get Paid. For the OC and conveyance stage, see Occupation and Completion Certificates in Haryana: What to Check Before You Take Possession and Conveyance Deed Haryana: Charges, Stamp Duty, Builder Delay.

Common mistakes when claiming delay interest

  • Calculating on the full sale price. The base is the amount paid, so a claim on the total consideration will be cut down.
  • Ignoring the grace period. If your agreement allows one and the authority accepts it, interest starts after it ends.
  • Stopping the clock at the OC date. The usual end point is the offer of possession plus two months, or handover if earlier, and the offer itself must be valid.
  • Forgetting earlier credits. Delay compensation already adjusted in your account statement will be deducted, so show it yourself.
  • Using today's rate for an old order. A decided order keeps the rate it fixed; only pending cases get the new 10.95% figure.
  • Taking possession without recording your claim. Write to the promoter that you are accepting possession without prejudice to your delay interest claim, and keep the acknowledgement.

Checklist before you file

  • Builder-buyer agreement with the possession clause and grace period
  • Every payment receipt and bank statement entry, with dates
  • All demand letters and the offer of possession, if any
  • The OC status of your tower (check the HRERA project page and DTCP)
  • A table of amount paid and dates, with your interest calculation at the current rate