As per Section 11 of the Consumer Protection Act, 1985, while considering the pecuniary jurisdiction of the District Forum, the value of the goods or services AND the compensation, if any, claimed, have to be considered together, and the total of these two should not be more than Rs. 20 lakh.
In your case, if the value of the flat is Rs. 18 lakh and the compensation claimed is Rs. 2 lakh, then the total becomes Rs. 20 lakh. If this is only amount demanded by you, then it would be within the jurisdiction of the District Forum. But, if you demanded refund of the value of flat (Rs. 18 lakh) + INTEREST + compensation (Rs. 2 lakh), then the total becomes more than Rs. 20 lakh, where the State Consumer Forum will have the jurisdiction and not the District Forum.
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