RERA -

How does one address these issues such as delay in possession, no proper documentation etc? What forums are available for you? It causes a lot of mental pain and anguish apart from being a financial strain on your pocket especially if you are paying house rent as well as your EMIs. We take a detailed look at answering all these questions in this article and also understand the meaning of RERA Act.

Some of the most common defaults/omissions by a builder/promoter in the real estate sector can be summed up as follows-

• Delay in possession
• Non-delivery 
• Project scrapped
• Violation of plan
• No proper govt. approvals
• No Commencement Certificate, Completion Certificate or Occupation Certificate(OC)
• Structural defects
• Third party interests
• Hidden charges
• Not constructing amenities as per original plan
• Using shady infrastructure in construction of amenities and rendering them unusable

LEGAL SCENARIO PRE-RERA

Before the passing of the Real Estate(Regulation and Development) Act, 2016, typically a buyer could approach a consumer forum i.e. at the district level, state level or national level. A consumer forum was set up under the Consumer Protection Act, 1986 and defines a consumer as one who:

‘hires or avails of any services for a consideration which has been paid or promised or partly paid and partly prom-ised, or under any system of deferred payment and includes any beneficiary of such services other than the person who ‘hires or avails of the services for consideration paid or promised, or partly paid and partly promised, or under any system of deferred payment, when such services are availed of with the approval of the first mentioned person but does not include a person who avails of such services for any commercial purposes’.

LEGAL REMEDIES POST RERA

After the passing of RERA, buyers and their grievances have been duly addressed under the Act. After the introduction of RERA, seeking legal redressal against defaulting buyers has becomes much more smooth. RERA now provides for a one stop forum to the aggrieved instead of dabbling between civil, criminal or consumer forums. The Act now clearly maintains that no civil court shall have jurisdiction to entertain any matter for which this Act was passed. This means that RERA now overrides all other forums that were previously available for an aggrieved and that the Regulatory Authority and the Appellate Authority are the only forums available. Section 79 of Chapter X of RERA states the following-

No civil court shall have jurisdiction to entertain any suit or proceeding in respect of any matter which the Authority or the adjudicating officer or the Appellate Tribunal is empowered by or under this Act to determine and no injunction shall be granted by any court or other authority in respect of any action taken or to be taken in pursuance of any power conferred by or under this Act.

With respect to this definition, consumer forums have not been specifically barred by RERA for home buyers to seek relief. A consumer forum is not considered a civil court and thus an aggrieved can approach either a consumer forum or a regulatory authority set up under RERA. However, if a case has been filed with a consumer forum the same can be withdrawn and presented before a regulatory authority under RERA.

WHAT ARE THE BENEFITS OF RERA?

? Make relevant documents public by the builder

The builder/promoter is obliged under Section 11 of the Act, to make public documents such as details of registration, quarterly update the list and type of documents booked, garages booked, status of the project etc. At the same time the builder shall also have the duty to make available to the buyer information such as layout plans, sanction plans approved by the competent authorities, also stage wise time schedule of the project along with civic infrastructure like water, sanitation electricity etc.

• Providing documents

The builder has the onus of obtaining the completion certificate/occupation certificate from the competent authority and to make available to the allottees. If the land is on a leasehold, the builder shall be responsible to obtain a lease certificate. The builder also has the responsibility of providing and maintaining essential services till the taking over of the project by the allottees. The builder additionally shall pay all outgoings till the transfer of physical possession to the allottees..

• Veracity of information in advertisement/prospectus

If a buyer invests into a particular project due to information contained in a prospectus/advertisement or after seeing a model flat/apartment and if such information turns out to be incorrect or false, then any loss incurred by the buyer shall have to be compensated by the promoter as per Section 12 of RERA.

• Advance deposit

   A promoter shall not accept a sum more than ten per cent of the cost of the apartment, plot, or building as the case may be, as an advance payment or an application fee, from a person without first entering into a written agreement for sale with such person and register the said agreement for sale.

• Adherence to sanction plan

The proposed project shall be developed and completed by the promoter in accordance with the sanctioned plans, layout plans and specifications as approved by the competent authorities. The promoter shall not make any additions and alterations in the sanctioned plans, layout plans and Specifications and the nature of fixtures, fittings and amenities in respect of the apartment, plot or building, as the case may be, which are agreed to be taken, without the previous consent of the allottees.