Comparison Of Legal Remedy For Home Buyers In RERA And The Consumer Protection Act, 1986
By Advocate Piyush Singh / 2017-05-17
The recession in the real estate sector has led to series of chaos for the home buyers who have booked a flat/unit/apartment in a real estate project and are yet to be handed over possession. According to estimates, there is an inventory of over 14 lacs flat/unit/apartment which have surpassed the promised date of delivery of possession and are yet to be handed over to Consumers. What can the victims of such practices do, and which is the right forum for the aggrieved?

Have a Legal Issue?

Get connected to the Best Lawyers and Chartered Accountants Near You!


The recession in the real estate sector has led to series of chaos for the home buyers who have booked a flat/unit/apartment in a real estate project and are yet to be handed over possession. According to estimates, there is an inventory of over 14 lacs flat/unit/apartment which have surpassed the promised date of delivery of possession and are yet to be handed over to Consumers.

Major concerns of the aggrieved home buyers

  1. Delay in Possession;
  2. For few projects, construction not even started;
  3. Enhanced demand by the Builder at the time of handing over of possession like charging for an increase in super area etc.;
  4. Major change in the layout plan or building plan by the Builder, leading to frustration of the purpose of purchase of the home buyer;
  5. Subvention Scheme- Builder defaulting in paying of EMIs to the bank.

The aggrieved home buyers have resorted to all kind of measures to express their anguish and frustration from conducting demonstration/processions to filing of consumer complaints/FIRs against the Builder through property lawyers in India . Though even after a lot of positive judgments by the Courts in favour of home buyers, even till date not even 5 % of the aggrieved home buyers have approached the Court or authorities for redressal of their grievance. One of the primary reason so as to why they have not approached the Court is the anticipation of Real Estate (Regulation and Development) Act, 2016 (RERA) and its subsequent impact on dispute resolution.

Under RERA, it was made mandatory for every State Government to notify the rules and form the Authority for resolution of disputes of the home buyers. The deadline for every State Government was 1st May 2017 but till date, not all states have notified rules and very few states have appointed the Authority under the RERA. The more disappointing fact is that the Rules notified by several states are diluted and do not cover the on-going projects or where even partial completion certificate has been granted to the Builder.

The recession in the real estate sector has led to series of chaos for the home buyers who have booked a flat/unit/apartment in a real estate project and are yet to be handed over possession. According to estimates, there is an inventory of over 14 lacs flat/unit/apartment which have surpassed the promised date of delivery of possession and are yet to be handed over to Consumers. What can the victims of such practices do, and which is the right forum for the aggrieved?

Have a Legal Issue?

Get connected to the Best Lawyers and Chartered Accountants Near You!


Related Posts

Read Our Blogs on Similar Topics