Rights and Duties of Allottees — Land Law Notes

Rights and Duties of Allottees

RERA is famous for what it does to builders, but its quiet achievement is what it does for buyers: it converts the allottee from a pleading customer into a rights-holder. The neat way to remember section 19 is that it is the mirror image of the promoter’s duties in Topic 4 — for almost every duty the promoter owes, the allottee has a matching right, and in return the allottee carries a few duties of his own (mainly, pay on time).

Who is an “allottee” and what section 19 gives

Start with the definition: an allottee is the person to whom a plot, apartment or building has been allotted, sold or otherwise transferred by the promoter — in plain words, the buyer (it includes a later transferee, but not a person to whom the flat is merely rented). Section 19 sets out the buyer’s rights and duties.

Section 19(4), RERA, 2016: “The allottee shall be entitled to claim the refund of amount paid along with interest at such rate as may be prescribed and compensation in the manner as provided under this Act, from the promoter, if the promoter fails to comply or is unable to give possession of the apartment, plot or building, as the case may be, in accordance with the terms of agreement for sale …”

In Simple Terms: If the builder fails to deliver on time, the buyer has a statutory right to get his money back with interest — he does not have to beg for it or prove damages the way he would in a civil suit. This is the buyer’s side of the section 18 remedy.

A. The rights of the allottee (s. 19(1)–(5))

Right to information — to obtain the sanctioned and layout plans, specifications and other project information.
Right to the time schedule — to know the stage-wise completion schedule, including water, sanitation, electricity and other amenities.
Right to claim possession — of the apartment/plot as per the promoter’s declaration; and the association of allottees to claim the common areas.
Right to refund with interest — to claim the refund of the amount paid, with interest and compensation, if the promoter fails to give possession (mirrors s. 18).
Right to documents — to have the necessary documents and plans, including of common areas, after possession.

B. The duties of the allottee (s. 19(6)–(11))

Make payments on time — pay the amounts due under the agreement for sale, and the share of registration charges, municipal taxes, water and electricity charges, maintenance charges and ground rent, at the proper time and place.
Pay interest on delayed payment — the allottee is liable to pay interest for any delay in payment (at the same prescribed rate the promoter pays — Karnataka Rule 16).
Participate in the association — take part in forming the association/society/co-operative society of allottees.
Take possession — within two months of the occupancy certificate being issued.
Participate in registration of the conveyance deed — as provided under section 17.

🔑 The interest liability is symmetrical: under Karnataka Rule 16 both the promoter and the allottee pay interest at the SBI highest marginal cost of lending rate + 2%. So the buyer’s rights come with a real duty to pay up on time.

🧩 WORKED EXAMPLE — the buyer who wants to stay, and the builder who wants his EMIs

Facts. An allottee’s flat is delayed by 14 months. He does not want to withdraw. Meanwhile the promoter complains the allottee is two months late on an instalment.

Rule. Section 19(4) read with s. 18 gives the allottee, if he stays, interest for every month of delay; s. 19(6)–(7) obliges the allottee to pay on time and to pay interest on his own delay, at the same prescribed rate (Karnataka Rule 16).

Apply. The allottee is entitled to interest from the promoter for the 14-month delay in possession; the promoter is entitled to interest from the allottee for his 2-month payment delay — both at SBI MCLR + 2%. The two claims are set off against each other at the same rate.

Conclusion. Section 19 is genuinely two-way: the buyer’s strong right to delay-interest sits beside his duty to pay on time, both measured by one even-handed rate.

flowchart TD
    ROOT["Rights & Duties of Allottees<br/>(s. 19)"]:::root
    ROOT --> R["RIGHTS<br/>information · time schedule ·<br/>claim possession ·<br/>refund with interest (s.18) ·<br/>documents after possession"]:::leaf
    ROOT --> D["DUTIES<br/>pay on time + interest on delay ·<br/>join the association ·<br/>take possession in 2 months ·<br/>join conveyance deed (s.17)"]:::leaf
    ROOT --> S["Symmetry (Karnataka Rule 16)<br/>same interest rate both ways:<br/>SBI MCLR + 2%"]:::leaf
    classDef root fill:#FFF8DC,stroke:#000,stroke-width:1px,color:#000;
    classDef leaf fill:#E6F3FF,stroke:#1E3A8A,color:#000;
    linkStyle default stroke:#888,stroke-width:1px;

Case Laws

M/s Newtech Promoters and Developers Pvt. Ltd. vs State of Uttar Pradesh (2021) — confirmed the allottee’s unconditional right to a refund with interest on the promoter’s failure to deliver, the practical heart of section 19(4).
Imperia Structures Ltd. vs Anil Patni (2020) — the allottee may enforce his RERA rights and additionally approach the consumer forum; his remedies are cumulative, not exclusive.

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