The enactment of the Real Estate (Regulation and Development) Act, 2016 marked a significant shift in India's real estate regulatory landscape, particularly by recognising the vulnerabilities of homebuyers who were historically subjected to delayed possession, misleading advertisements, and one-sided contractual terms. Among the most crucial protections introduced under the Act are the provisions relating to refund and compensation, primarily embodied in Sections 18 and 19, which aim to provide financial relief and accountability in cases of default by promoters. This research paper undertakes a critical examination of the effectiveness of these mechanisms in safeguarding the interests of homebuyers. While the statutory framework appears robust on paper, its practical implementation raises several concerns, including delays in enforcement, inconsistent interpretation by regulatory authorities, and difficulties faced by allottees in realising awarded compensation. Through a doctrinal and analytical approach, the paper argues that although RERA has significantly improved the legal position of homebuyers, the refund and compensation framework still suffers from structural and procedural limitations. The study concludes by suggesting reforms aimed at ensuring timely enforcement, uniformity in compensation, and a more buyer-centric dispute resolution mechanism.