Introduction
For a long time, the Indian real estate sector was plagued by various issues. One of the biggest headaches for homebuyers has been the significant delay in getting possession of their homes, even after paying a large chunk, sometimes up to 90%, of the property’s cost. The distress caused by such delays, which can stretch to six or seven years, is truly unimaginable.
In response to these struggles faced by homebuyers and to bring some order to the real estate industry, the Real Estate (Regulation and Development) Act, 2016 (RERA) came into existence. This landmark law provided a dedicated platform for addressing real estate grievances.
RERA set up the Real Estate Regulatory Authority (RERA Authority) to quickly resolve disputes. It also established the Appellate Tribunal to hear appeals against the RERA Authority’s decisions. These bodies have jurisdiction over all real estate matters. You can file a complaint under RERA for any claim amount, unless the builder has already received the Occupancy Certificate for the project.
When Your Home’s Possession is Delayed: Your RERA Rights
Section 18 of RERA is specifically designed for situations where the builder (promoter) delays giving possession. This section gives you, the homebuyer, clear options:
- Cancel the Agreement and Get a Refund: You can choose to end your agreement with the builder and demand a full refund of all the money you’ve paid, along with interest.
- Continue with the Project and Claim Compensation: If you still want the property, you can choose to wait. In this case, you can claim compensation from the builder for every month of delay until you finally get possession of your home.
If the builder delays your project’s possession, you can file a complaint against them under Section 31 of the RERA Act. This section allows any person who feels wronged to file a complaint with the RERA Authority for any violation of the Act. Both individual homebuyers and Associations of Allottees can file these complaints.
Making the RERA Order Stick: Enforcement
What happens if the RERA Authority rules in your favor, but the builder still doesn’t comply? Don’t worry, RERA has a mechanism for this too. You can file an application for the execution of the RERA order against the builder with the very same RERA Authority that passed the initial order. This means the Authority will take steps to ensure the builder follows through.
If the builder has failed in their duties, leading to delays in construction and property possession, you can seek several types of relief:
- Cost of Alternate Accommodation: You can ask for the money needed to buy another home at the current market price in the same area, reflecting the increased cost due to the delay.
- Refund with Interest: You can claim the total amount you paid to the builder, along with interest on that payment.
- Compensation for Rent: Due to the delay, you might be spending money on rent for alternate accommodation. You can claim compensation for these rental expenses.
- Damages for Lost Opportunity: This allows you to claim compensation for the financial loss suffered because your money was tied up and couldn’t be invested elsewhere for potential gains.
The RERA Hearing Process
According to Section 71 of the Act, any claim for compensation filed by a homebuyer under Section 31 must be heard by the Adjudicating Officer of RERA. This officer holds a rank similar to a District Judge and is mandated to hear and decide the case within a 60-day period, following principles of natural justice. This time-bound inquiry and order is a significant advantage for consumers, ensuring a speedy resolution to their grievances.
The Adjudicating Officer has the power to call anyone who knows about the case to give evidence or to produce any documents that might be relevant to the inquiry. This ensures a thorough investigation.
The Adjudicating Officer can also direct the builder to pay the calculated compensation or interest as they deem fit, following the provisions of the RERA Act.
Section 72 of the Act outlines the factors the Adjudicating Officer must consider when deciding the amount of compensation or interest:
- Any unfair gain or advantage the builder received due to their default.
- The total loss caused to the homebuyer because of the default.
- Whether the builder’s default is a repeated issue.
- Any other factors the officer deems necessary for ensuring justice.
If you are unhappy with a decision or order made by the RERA Authority or the Adjudicating Officer, you have the right to appeal to the Appellate Tribunal that has jurisdiction over your case.
However, if a builder wants to appeal, they must first deposit at least thirty percent of the penalty, or a higher percentage determined by the Appellate Tribunal, or the total amount including interest and compensation they owe to the homebuyer. This ensures that appeals aren’t just filed to delay payment.
You must file your appeal within 60 days from the date you receive a copy of the Authority’s or Adjudicating Officer’s decision. The Tribunal can allow an appeal after this 60-day period if you can show a good reason for the delay.
The Appellate Tribunal can also issue interim orders (temporary orders) and is expected to resolve the appeal within 60 days from the date it’s received. This period can be extended, but the reasons for extension must be recorded in writing.
RERA vs. Consumer Forum
Before RERA, disputes between builders and homebuyers often dragged on for years in consumer courts. RERA offers clear advantages over consumer forums, making it easier for homebuyers to get justice.
One key benefit is the ease of filing complaints with RERA. RERA’s jurisdiction is based on the property’s location, unlike consumer courts, which have monetary limitations (pecuniary jurisdiction) on the cases they can hear. Moreover, RERA has the power to investigate a matter and issue notices on its own, and critically, it can even imprison errant builders, a power that consumer courts do not possess. This gives RERA significantly more teeth to enforce its orders.
Conclusion
RERA has brought a much-needed mechanism for the timely resolution of real estate matters directly to the doorstep of the consumer. Despite facing various challenges in its implementation, the legislation offers swift regulatory and judicial remedies that significantly benefit homebuyers. It has transformed the landscape, providing a more accountable and transparent environment for property transactions.
Frequently Asked Questions (FAQs)
Q1: What is RERA and why was it introduced?
RERA, or the Real Estate (Regulation and Development) Act, 2016, is a law introduced to regulate the real estate sector in India. It aims to protect homebuyers and ensure transparency and accountability from builders, especially addressing issues like delayed possession.
Q2: Can I get my money back if my builder delays possession?
Yes, under Section 18 of RERA, you have the option to terminate your agreement and seek a full refund of the amount paid, along with interest, from the builder.
Q3: What if I still want the property despite the delay?
If you wish to continue with the project, Section 18 of RERA also allows you to claim monthly compensation from the builder for the period of delay until you receive possession.
Q4: How do I file a complaint under RERA?
You can file a complaint with the Real Estate Regulatory Authority (RERA Authority) of your state under Section 31 of the RERA Act. The process and specific forms are usually available on your state’s RERA website.
Q5: How long does it take for RERA to decide a complaint?
According to Section 71 of RERA, the Adjudicating Officer is mandated to hear and decide a compensation claim within 60 days. This makes RERA a relatively fast dispute resolution mechanism.
Q6: What happens if the builder doesn’t follow the RERA order?
If the builder fails to comply with a RERA order, you can file an application for the execution of that order with the same RERA Authority. The Authority will then take steps to ensure compliance.
Q7: Can I claim for rent I’m paying due to the delay?
Yes, if you are paying rent for alternate accommodation because of the builder’s delay, you can claim compensation for these rental expenses as part of your relief under RERA.
Q8: Can a builder appeal a RERA decision?
Yes, a builder can appeal a RERA decision to the Appellate Tribunal. However, they must first deposit a certain percentage (at least 30%) of the penalty or the total amount owed to the homebuyer before their appeal can be considered.