Best Plot, Shop & Office Buyers - Delay and Refund Rights Lawyer

When people talk about RERA, they usually mean flats in group housing towers. But the Real Estate (Regulation and Development) Act, 2016 covers much more than that. Buyers of residential plots in gated colonies, shops in malls and high-street projects, office spaces, studio apartments in commercial towers, food court units and service apartments are all protected. The same delay, refund and possession rights apply to them, and in some ways commercial buyers have more to gain from RERA than home buyers do.

This page sets out what's different for plot and commercial buyers, where the usual disputes arise, and how to use the Act effectively.

Plots and commercial units are covered

The Act defines a "real estate project" to include the development of a building or apartments, and the development of land into plots, for the purpose of selling them. "Apartment" itself is defined widely and includes shops, offices, showrooms, godowns and premises for business, whether called a unit, a block or anything else. And an "allottee" is the person to whom a plot, apartment or building has been allotted, sold or transferred by the promoter.

So a buyer of a 250 square yard plot in a plotted township in Sohna, a shop in a retail project in Noida, or an office floor in a commercial tower in Gurugram is an allottee in exactly the same way as a flat buyer.

Why commercial buyers in particular benefit

For decades, buyers of commercial units struggled to get relief from consumer forums. The Consumer Protection Act protects consumers, and a person who buys goods or services for a "commercial purpose" generally isn't one. Builders routinely argued that a person who bought a shop or an office to rent out was an investor, not a consumer, and many complaints were dismissed on that ground.

RERA has no such test. The definition of allottee doesn't ask why you bought the unit. An investor who bought three shops to earn rent is as much an allottee as a family that bought a flat to live in. That makes RERA the natural forum for most commercial buyers.

Delay and refund: the same rights

Section 18 applies to plots and commercial units just as it does to flats. If the builder fails to complete the project or hand over possession by the date in your agreement, you can choose between:

• withdrawing and claiming a refund of everything you paid, with interest at the prescribed rate, plus compensation; or
• staying and claiming interest for every month of delay until possession.

The interest rate is fixed by the state rules: in Uttar Pradesh and Haryana, the State Bank of India's highest marginal cost of lending rate plus 2%. Our pages on refund and delay interest explain both in detail.

For commercial buyers, the choice often turns on the state of the project and the rental market. A half-finished mall in a location that never developed may be worth leaving. A completed office tower in a busy business district may be worth waiting for.

What "possession" means for a plot

Possession of a plot is different from possession of a flat, and disputes about it are common. A builder may say possession was offered years ago because it sent a letter and "demarcated" the plot with a few stones. The buyer may say there were no roads, no water connection, no sewer line, no electricity and no boundary wall, so there was nothing to take possession of.

In a plotted development, the builder's obligation is usually to develop the land into plots with the infrastructure promised in the agreement and the licence or approval: internal roads, water supply, sewerage and drainage, electrical infrastructure, street lighting, parks and other common facilities. Under Section 11(4)(b), the builder must obtain the completion certificate, or occupancy certificate, as applicable, and make it available to buyers. For plotted colonies, that usually means a completion or part-completion certificate for the development works from the planning authority.

An offer of possession of a plot that has no access road or services, and no completion certificate for the development works, can be challenged in the same way as an offer of possession of a flat without an occupancy certificate. The buyer can claim delay interest until valid possession, or a refund.

Common problems for plot buyers

Plot location or size changed

Buyers sometimes find that the plot finally offered isn't the one they booked: a different number, a different location in the layout, a smaller area, or a plot facing a road instead of a park. Section 14 requires the builder to develop the project according to sanctioned plans and specifications, and restricts changes. If the layout was revised, the question is whether the revision was sanctioned and whether consent was obtained where the law required it. A buyer is generally entitled to the plot booked, or to an equivalent plot on fair terms with their consent, or to a refund.

Licence and approval problems

In Haryana, plotted colonies are developed under licences granted by the Department of Town and Country Planning. In Uttar Pradesh, private townships are developed under the state's township policies and the approvals of the development authority. If the licence lapses, is cancelled, or covers less land than the builder sold, buyers can be left with plots that can't be legally transferred or built on. The builder's RERA registration should disclose the licence. Check it.

EDC and IDC demands

External and infrastructure development charges are a significant part of plot prices in Haryana. Builders often raise demands for increases in these charges. Those demands are legitimate only if the agreement allows them and the builder has actually paid the increased amount to the government for your plot. Builders that collected EDC from buyers and didn't deposit it have created serious problems at the registration stage.

Construction restrictions not disclosed

Buyers sometimes discover after possession that the plot comes with restrictions on the number of floors, the coverage or the use, which weren't explained at the time of sale. If the builder's brochure or agreement promised one thing and the approved zoning plan says another, that may be a misrepresentation under Section 12, giving rise to compensation or a refund.

Registry of plots

As with flats, Section 17 requires the builder to execute a registered conveyance deed in favour of the buyer. For plots, problems at registry often trace back to licence issues, unpaid government dues or disputes over the land itself. See our page on registry delay.

Common problems for commercial buyers

Super area loading

Commercial projects often sold units on a super area that was double, or more, the actual usable area. A buyer pays for 500 square feet and receives a shop of 220. Under RERA, agreements for sale should state the carpet area, and the Act's definition of carpet area in Section 2(k) is the net usable floor area. Pre-RERA agreements are still interpreted on their own terms, but large unexplained increases in super area at possession can be challenged. See our page on extra charges at possession.

Assured returns and lease guarantees

Many commercial units were sold with a promise of monthly returns until completion and a guaranteed rent after it. When those payments stop, buyers have a separate set of problems. We cover them on our page on assured returns.

"Fit-out possession"

Builders of commercial projects often offer "fit-out possession" before the occupancy certificate is issued, so that tenants can do their interiors. That's a common commercial practice, but it isn't the same as legal possession. A fit-out handover without an occupancy certificate doesn't stop the delay clock for RERA purposes, and occupying a commercial unit without an occupancy certificate can raise problems with fire safety, electricity connections and insurance.

Change of use or layout

Builders sometimes merge units, convert a retail floor into a food court, or change a planned anchor store into small units. Whether these changes are lawful depends on the sanctioned plans and on consent. Buyers whose units are affected can complain under Section 14.

Maintenance and common area charges

Commercial maintenance charges are typically much higher than residential ones, and disputes over them are frequent. Before handover to an association, the builder is responsible for maintenance at reasonable charges under Section 11(4)(d). Unreasonable or unexplained charges can be challenged.

Projects sold by development authorities

In the NCR, many plots and some built units have been allotted by public bodies such as development authorities through schemes. The Act's definition of promoter includes a development authority or other public body in respect of buildings it constructs or plots it develops for sale. Whether a particular authority scheme is covered depends on its structure and on the state's approach. Allottees of public authority schemes often also have remedies under the authority's own regulations, in consumer forums, or through writ petitions in the High Court. We advise on the right route case by case.

Before you buy a plot or a commercial unit

If you're still at the buying stage, a few checks save a great deal of trouble later.

For plots

• Licence or approval. Ask for the licence number (in Haryana) or the township approval (in UP), and check it covers the land your plot is on.
• Layout plan. Get a copy of the sanctioned layout showing your plot number, size, road widths and nearby facilities.
• Zoning. Ask what you're allowed to build: number of floors, ground coverage, setbacks and permitted use.
• Infrastructure timeline. Get written dates for roads, water, sewer and power.
• EDC and IDC. Ask whether the price includes them and whether future increases will be charged.
• RERA registration. Confirm the colony, or the phase you're buying in, is registered.

For commercial units

• Carpet area. Ask for the carpet area in writing, not just the super area.
• Occupancy certificate status, if the project is complete or nearly so.
• Use restrictions. Some floors or units can only be used for particular purposes. Check the sanctioned plans.
• Leasing terms. If the unit is sold with a lease or a guaranteed rent, read the lease authorisation carefully. Who chooses the tenant? Can you exit?
• Maintenance. Ask for the expected maintenance rate and what it covers.
• Who will own the common areas. In malls and commercial complexes, builders sometimes retain ownership of common areas or parking, which affects maintenance and control.

Plot and commercial cases in the NCR

Most plot disputes we see are in licensed colonies around Gurugram, Sohna and the Dwarka Expressway, along the Yamuna Expressway, and in townships around Ghaziabad and Greater Noida. Commercial disputes cluster in Gurugram's office and retail projects along Golf Course Extension Road, Sohna Road and the expressways, and in Noida's commercial sectors and high-street projects along the expressway.

The authority depends on where the project is: UP RERA for Noida, Greater Noida, the Yamuna Expressway and Ghaziabad; Haryana RERA in Gurugram for Gurugram district; Haryana RERA in Panchkula for the rest of Haryana; and Delhi RERA for Delhi.

When a buyer has several units

Investors often hold more than one unit in the same project, sometimes bought at different times and under different agreements. Each unit is a separate allotment, with its own agreement, payments and possession date. They can usually be dealt with in a single complaint if the facts are similar, but the claim for each unit needs to be worked out separately. A buyer can also take different routes for different units, for example keeping one shop and seeking a refund on another, if the facts support it.

What builders argue against plot and commercial buyers

"You're an investor, so you're not entitled to protection." That argument has force in consumer law. Under RERA it doesn't. The Act protects allottees regardless of purpose.

"The plot was handed over when we demarcated it." Demarcation isn't development. The question is whether the plot was ready for use in the way the agreement and the approvals required, with the promised infrastructure and a completion certificate for the development works.

"Fit-out possession ended the delay." A handover for interiors before an occupancy certificate doesn't satisfy the builder's obligation to give possession of a completed unit.

"Super area always changes in commercial projects." Changes are possible within the limits of the agreement. Large, unexplained increases, especially where the shop itself hasn't grown, can be challenged.

"The buyer agreed to the new layout." Consent should be specific and informed. A general clause allowing the builder to make "any changes" doesn't override Section 14's protection against changes to sanctioned plans without consent.

"The licence problem is the government's fault." Obtaining and maintaining approvals is the builder's responsibility. Buyers aren't expected to bear the consequences of the builder's failure to keep its licence valid.

Refund or stay: a few commercial considerations

Home buyers usually decide between refund and delay interest based on whether they still want to live in the project. Commercial buyers have a different set of questions.

• Is the location working? Look at occupancy in nearby completed projects, footfall in completed malls or high streets nearby, and rents actually achieved.
• Is there a credible leasing plan? A named anchor tenant with a signed lease is very different from a builder's assurance that "leasing discussions are on".
• What will maintenance cost? In under-occupied commercial projects, maintenance charges can exceed rental income.
• What is the exit value? If you wanted to sell the unit after possession, what would it realistically fetch?

Weighing these honestly against a refund with interest at the prescribed rate is often the most important advice we give commercial buyers.

Title and land issues specific to plots

Because a plot buyer is buying land rather than a share in a building, title problems hit them directly. A few situations come up repeatedly in the NCR.

• Land not fully owned by the builder. The builder may have a collaboration agreement with the land owners, or may have acquired only part of the land covered by the licence. If your plot falls on land the builder doesn't control, it can't give you clear title.
• Land under acquisition or litigation. Parts of some colonies have been subject to acquisition notices, disputes between land owners, or court orders. The builder's RERA registration should disclose pending litigation affecting the project.
• Mortgaged land. Builders sometimes mortgage project land to lenders. A plot sold to you shouldn't remain subject to the builder's mortgage at the time of conveyance, unless the lender has agreed to release it.

Section 18(2) of the Act makes the builder liable to compensate the allottee for loss caused by defective title to the land on which the project is being developed, and this liability isn't barred by limitation under any other law. If you discover a title defect, that's a separate and serious ground of claim, alongside any delay.

Commercial units in mixed-use projects

Many newer projects in Gurugram and Noida combine residential towers with a retail podium or office block. Buyers of commercial units in mixed-use projects should check whether the commercial portion is registered separately, whether it has its own completion timeline, and how common areas and maintenance are split between residential and commercial owners. Disputes between the two groups over shared facilities and charges are increasingly common, and the builder's original documents usually decide them.

An illustration

Two simplified, made-up examples.

A plot buyer. In 2013, a buyer booked a 200 square yard plot in a licensed plotted colony in Gurugram district for Rs 60 lakh and paid Rs 54 lakh by 2015. The agreement promised possession of a developed plot by 2016. In 2019 the builder sent a "possession letter" with a final demand, but the colony had no water or sewer connections, roads were incomplete, and no completion certificate had been issued. The buyer can argue that the 2019 letter wasn't a valid offer of possession, and claim delay interest from 2016 until a valid offer, or a refund with interest, depending on what they want.

A commercial buyer. In 2015, an investor booked two retail shops in a Noida high-street project for Rs 1.2 crore in total, paying 90% upfront. The project was due in 2018. In 2022 the builder offered "fit-out possession" without an occupancy certificate and demanded additional charges for an increase in super area. The investor isn't a "consumer" in the ordinary sense, but is clearly an allottee under RERA, and can claim delay interest until a valid offer of possession, challenge the super area increase, and, if the project's prospects look poor, ask for a refund instead.

How we help plot and commercial buyers

1. Read the agreement and any separate documents such as assured return letters, lease authorisations or plot allotment schedules.
2. Check approvals: the builder's licence or approval, the sanctioned layout or building plans, and the status of the completion or occupancy certificate.
3. Check the RERA registration and quarterly updates.
4. Compare what was promised, in the brochure and agreement, with what has been delivered or offered.
5. Advise on the route: refund, delay interest, correction of demands, or other remedies.
6. File and argue the complaint, and pursue recovery or appeal as needed.

Documents to bring

• Allotment letter and agreement for sale, including the layout or unit plan
• Payment receipts and bank statements
• Brochure and any advertisements
• Possession letter and final demand, if any
• Any assured return, lease or rent guarantee documents
• Correspondence about delays, layout changes or extra charges
• Photographs of the plot or unit and its surroundings

Frequently asked questions

Does RERA cover residential plots?

Yes. Developing land into plots for sale is a real estate project under the Act, and plot buyers are allottees.

I bought a shop as an investment. Can I still use RERA?

Yes. RERA's definition of allottee doesn't depend on the purpose of purchase. That's a key difference from consumer law.

The builder says my plot was "handed over" years ago. Is that true?

It depends on what was handed over. A plot without the promised infrastructure and without a completion certificate for the development works may not have been validly offered. Look at what existed on the ground at the time.

Is fit-out possession the same as possession?

No. Fit-out possession before an occupancy certificate is a practical arrangement. It doesn't end the delay for RERA purposes.

My shop's carpet area is less than half the super area. Can I challenge that?

If the super area has increased beyond what the agreement allows, or the loading isn't explained, yes. Under RERA-era agreements, carpet area governs the price.

The builder changed my plot number. What can I do?

You're generally entitled to the plot you booked, or an equivalent plot with your consent, or a refund. Changes to the sanctioned layout also need to comply with Section 14.

Can I complain about a development authority scheme under RERA?

Sometimes. The Act's definition of promoter includes development authorities for plots and buildings they develop for sale, but the answer depends on the scheme. Other remedies may also be available.

Are commercial maintenance charges covered by RERA?

Before handover to the association, the builder must provide maintenance at reasonable charges under Section 11(4)(d). Disputes about unreasonable charges in that period can be raised before the authority.

General information on the rights of plot and commercial unit buyers under the Real Estate (Regulation and Development) Act, 2016. Not legal advice. Examples are illustrations only.