Consequences of non-completion of the project as on the specified date under RERA and MOFA

Particulars	RERA, 2016	MOFA, 1963
Options available to the allottees of the project
If the allottee withdraws from the project:	·  He can claim the amount paid by him in respect of that apartment/plot/building, without affecting any other remedy available and ·  Interest @ 2% above the prevalent Highest Marginal cost of lending rate of State Bank of India prevailing on the date on which the amount becomes due and ·  compensation as maybe decided by the Adjudicating Officer	Not Applicable
If the allottee continues with the project:	·   Can claim interest at 2% above the prevalent Highest Marginal cost of lending rate of State Bank of India for every month of delay till the handing over of the possession.	Not Applicable
Penal Provision	·   As per Section 60 of RERA, penalty for contravention of Section 3 and 4 of RERA is 5% of the estimated cost of the real estate project	·   If the promoter fails to give possession of the flat as per the date specified in the agreement or any further date (extension), then he shall be liable on demand to refund the amounts received by him along with interest of 9% p.a. till the date of refund ·   If any promoter contravenes the provisions of Section 4, then on conviction, he shall be punished with a term upto 3 years of imprisonment and /or fine.

Summary:

Thus, it can be concluded that under RERA, allottee has the option to withdraw or continue with the project. However, under MOFA, promoter has to refund the amount to the allottee if the project is not completed within the specified date and there is no option of continuing with the project.