Consumer Court vs RERA vs NCLT: Which Forum Suits Your Complaint Against a Builder

For a delayed or defective flat you can go to the RERA authority, a consumer commission or, if the builder is failing, the NCLT, and the Supreme Court held in Imperia Structures v. Anil Patni (2020) that RERA does not shut the consumer route. Broadly: RERA for a refund with interest on a registered project, the consumer commission for compensation, and NCLT only when the company is going under.

Key takeaways

• Consumer commissions are tiered by the amount you paid: up to Rs 50 lakh at the District, Rs 50 lakh to Rs 2 crore at the State, above Rs 2 crore at the National Commission.
• Filing costs are low everywhere: nil to Rs 7,500 at consumer commissions, Rs 1,000 to Rs 5,000 for a RERA complaint in the states checked.
• RERA's refund comes with interest at the prescribed rate, SBI's highest MCLR plus 2% in most states, or roughly 10.8% today.
• An NCLT petition by homebuyers needs 100 allottees of the same project or 10% of them, whichever is fewer. It starts a rescue process, not a refund.
• Once NCLT admits a builder into insolvency, the moratorium freezes RERA and consumer cases against the company, though not against its directors or promoters.

The three forums side by side

Target times are what the statutes aim for. Both consumer commissions and RERA authorities routinely take longer when the cause list is heavy.

Consumer commission: best for compensation

Which commission hears you

The Consumer Protection (Jurisdiction) Rules, notified on 30 December 2021, fix jurisdiction by the value of goods or services "paid as consideration", not by the flat's price or the compensation you claim:

• District Commission: up to Rs 50 lakh paid.
• State Commission: above Rs 50 lakh and up to Rs 2 crore.
• National Commission (NCDRC): above Rs 2 crore.

What it costs

The fee rises in bands with the amount: nothing up to Rs 5 lakh, Rs 200 to Rs 10 lakh, Rs 400 to Rs 20 lakh, Rs 1,000 to Rs 50 lakh, Rs 2,000 to Rs 1 crore, a few thousand rupees in the bands above, and Rs 7,500 above Rs 10 crore. You can appear yourself, though most buyers hire a lawyer.

Strengths and limits

The consumer route treats a delayed flat as "deficiency in service". It can award compensation for mental agony and litigation costs as well as a refund, and it works for projects that were never registered with RERA. Section 38(7) asks commissions to decide within three months of notice to the builder, but that is an aim rather than a deadline. You must file within two years of the cause of action, which in delay cases is usually argued as continuing until possession or refund.

RERA authority: best for refund with interest

Section 31 lets any aggrieved person complain to the state authority. Section 18 gives the core remedy: if the promoter fails to give possession by the agreed date, you can withdraw and take a full refund with interest, or stay and take interest for every month of delay.

In Newtech Promoters v. State of UP (11 November 2021), the Supreme Court called the refund right "unconditional" and held that the authority itself can order refund and interest, while compensation under sections 71 and 72 is for the adjudicating officer. It also upheld section 43(5), which makes a promoter deposit the amount ordered before it can appeal. That is why builders pay RERA orders more readily than they used to.

The rate is set by state rules. In most states it is SBI's highest marginal cost of lending rate plus 2%, though at least one state's rules use MCLR plus 1%. SBI's MCLR ran from 7.85% to 8.80% across tenures in mid-September 2026 (another source gives 7.90% to 8.85%), so the usual formula gives about 10.8% a year. Our guide to RERA refund rights for delayed possession covers the section 18 calculation in detail, and for Haryana projects see the HRERA guide.

Worked example: the same claim in two forums

You booked an Rs 80 lakh flat and have paid Rs 60 lakh. Possession is two years late and you want out.

• Consumer route: you paid Rs 60 lakh, which is above Rs 50 lakh, so the State Commission hears it. The fee band of Rs 50 lakh to Rs 1 crore is Rs 2,000. You can ask for the Rs 60 lakh back plus compensation and costs.
• RERA route: a complaint fee of Rs 1,000 to Rs 5,000 depending on the state. If the whole Rs 60 lakh had been paid two years ago, simple interest at 10.8% for two years is Rs 60 lakh x 10.8% x 2 = Rs 12.96 lakh, making Rs 72.96 lakh. In practice interest runs from the date of each instalment, so the real figure is lower if you paid in stages.

The consumer commission may award more if it grants heavy compensation; RERA is usually quicker and its interest is formula-based. Check the agreement's own delay clause too, covered in our note on builder-buyer agreement clauses.

NCLT: when the builder, not just the flat, is failing

Since the 2018 amendment, allottees count as financial creditors. Under section 7, as amended in 2020, homebuyers can start a corporate insolvency resolution process only if at least 100 allottees of the same project, or 10% of them, whichever is fewer, file together. The Supreme Court upheld that threshold in Manish Kumar v. Union of India (2021).

NCLT is not a debt-collection court. Admission appoints an insolvency professional, the board loses control, and creditors, homebuyers included, vote on a resolution plan. Homebuyers may get their flats built by a new owner, or a payout that is often less than they paid. We cover how that works in builder insolvency: what homebuyers can do.

Admission also triggers the section 14 moratorium, which stops RERA and consumer cases against the company. In July 2026 the Supreme Court, in a bench of Justices Vikram Nath and Sandeep Mehta, held that the moratorium protects only the corporate debtor, so a consumer complaint can go on against promoters, directors, group companies or landowners named alongside it.

Which remedy suits which problem

• Registered project, delay, you want your money back with interest: RERA.
• Delay or defects and you want compensation beyond interest: consumer commission, or the RERA adjudicating officer.
• Project not registered with RERA, or completed before RERA: consumer commission.
• Builder has stopped work on several projects, many buyers affected, lenders circling: consider NCLT collectively, knowing it may freeze your individual cases.
• Builder is already in insolvency: file your claim with the resolution professional, and pursue promoters or directors personally before the consumer commission if they were party to the deal.

Where each route disappoints

An order is not money. An unpaid RERA order goes to the Collector for recovery as arrears of land revenue under section 40, which can take months. Consumer commissions carry heavy backlogs, especially the NCDRC. NCLT is the riskiest: once the process starts, you are one creditor class among many, individual claims stop, and a resolution plan can pay less than you put in. Filing in two forums for the same relief also invites objections, so pick one route per claim and stick to it.

Frequently asked questions

Can I file in the consumer court if my project is registered with RERA?

Yes. In Imperia Structures v. Anil Patni (November 2020) the Supreme Court held that section 79 of RERA bars only civil courts, not consumer commissions, and section 88 says RERA is in addition to other laws. A buyer of a registered project can choose either forum. What you should avoid is chasing the same relief in both at once.

Which consumer commission hears a flat worth Rs 1.5 crore?

It depends on what you have paid, not the flat's price. Since the 2021 jurisdiction rules, the District Commission hears claims where the consideration paid is up to Rs 50 lakh, the State Commission above Rs 50 lakh and up to Rs 2 crore, and the National Commission above Rs 2 crore. If you have paid Rs 90 lakh towards a Rs 1.5 crore flat, you go to the State Commission.

How much interest does RERA award on a refund?

The rate comes from each state's rules, most commonly SBI's highest marginal cost of lending rate plus 2%. With SBI's MCLR topping out at about 8.8% in September 2026, that works out to roughly 10.8% a year. Interest runs from the date each payment was made until the refund, and the authority can order it directly under section 18.

Can a single homebuyer take a builder to NCLT?

No. Section 7 of the IBC requires at least 100 allottees of the same real estate project, or 10% of the total allottees, whichever is fewer, to file jointly. The Supreme Court upheld this threshold in Manish Kumar v. Union of India (2021). A single buyer's practical options are RERA or the consumer commission.

What happens to my RERA case if the builder goes into insolvency?

Once NCLT admits the builder into insolvency, the section 14 moratorium stops proceedings against the company, including RERA and consumer cases. You then file your claim with the resolution professional. In July 2026 the Supreme Court held that the moratorium does not protect promoters, directors or landowners, so a complaint against them can continue.

If you are weighing a refund claim against waiting for possession, Realty Hunting can help you judge what the flat is worth today and what a replacement home would cost.