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RERA - What is RERA Importance and Related issues

In India, especially in civil matters exceedingly large number of cases are pending. To make system more effective and speed in functioning in court proceeding and procedure there is need to have special courts to deal with specific matters, special tribunals covers specific matters, issues, parties under special jurisdiction. In India, there are already different issues regarding property (land) with having same jurisdiction covered under District courts.

In India real estate is getting bigger business and legal issues are also arising from the same, to give special tribunal and jurisdiction under these matters Real Estate (Regulation and Development) Act, 2016 [RERA Act] was passed. Under RERA act appointment of Regulatory Authority has to be done by every state. RERA Authority stands for Real Estate Regulating Authority formed under RERA act.

This authority works as special tribunal to bring about transparency and fairness in the working of the real estate sector. There are three forums covered under RERA Act as- RERA Authority, RERA Adjudicating Officer, RERA Appellate Tribunal. Every act has its own purpose and legislative intent, this act was passed to achieve three main purposes as:
  1. Increase investment in real estate sector ( people will invest due to security, fairness and transparency),
  2. Protect buyers,
  3. Regulate developers.

Under RERA act there is provision to establish Regulating Authority having role of Adjudication and Arbitration in real estate matters. Further discussing case laws and their important judgements from tribunals of Haryana, Uttar Pradesh and Maharashtra.

Further discussed some case laws based on the issues as- Jurisdiction of RERA Authority and Possession of homebuyers. Apart from this RERA complaint can be filed for the issues like- 1) Delay in possession, 2) False Advertisement 3) Advance Payment, 4) Improper Registration of Project, 5) No details about Project, 6) Structural Defects, 7) Ownership Transfer.[i]

Starting with jurisdiction issues in RERA tribunals, where authorities are of opinion that tribunal won't entertain any cases which are already pending somewhere in other tribunal, court with the same parties with similar issue. Referring to the case, Sh. Sukhbir Singh Grewal Vs. M/s. MVL Ltd.[ii] where buyer (complainant) filed a case against builder (respondent) for delay in giving possession date prescribed in agreement, respondent submitted that cause of delay was due to interim order passed by the SEBI, and complainant challenges the order in the Security Appellate Authority (SAT). In this case present tribunal where complaint has filed, Hon'ble authority ordered that this tribunal cannot entertain this case as matter is already in SAT.

Similarly in the case, Sh. Guru Prashad Chaudhary Vs. Assotech Ltd.[iii] where complainant filed complaint in RERA tribunal but according to facts of the case previously same complaint was filed in the National Consumer Disputes Redressal Commission (NCDRC).

Authority dismissed the complaint as it was held that:
Complaint can be entertained by this Authority until it has been withdrawn from the NCDR.

Further dealing with the significant and often issue for which complainant approaches the authority as � Delay in giving possession to buyer.

In the case, Bindu R Jaisingh V/s Ekta Parksville Homes Pvt. Ltd.[iv] where complainant was buyer whom was promised that will receive possession of flat by June, 2017. But there was delay in giving possession occur, aggrieved by which complainant filed complaint. Respondents put forth request for to allow them reasonable timeline as cause for delay was beyond the control of the respondent.

Authority ordered parties to execute and register agreement of sale after 45 days of order ( section 13 RERA Act), and respondent party was ordered and directed than to complete and give possession before June, 2019 to complainant. Court further ordered than failing to follow court direction will result to pay interest to complainant from July 1, 2019 under Rule 18 of the Maharashtra Real Estate (Regulation and Development) (Registration of Real Estate Projects, Registration of Real Estate Agents, Rates of Interest and Disclosures on Website) Rules, 2017.

In cases where the issue is regarding the delay in possession, respondent who is liable to give possession have to show that the reason of delay was not controllable and beyond his assumption. In those cases court may give them relief of specific period otherwise authority always passes order to give possession along with the penalty of delayed period.

In the case, Sh. Rochak Bakshi Vs. M/s. Assotech Limited [v], where respondent delayed period of two years to give possession. Aggrieved by complainant filed complainant, in this case court ordered to give possession along with the penalty of delayed period as there was no reasonable grounds for delay on behalf of the respondent.

Further it is always an issue of contention that:
Whether complainant can file complainant even after possession/ Occupancy Certificate (OC) ?
In these situations there is general rule of law in accordance with RERA Act that complainant is allowed even after possession if complainant is filed for- 1) the breach of agreement between complainant and respondent, 2) Complaint in accordance to The Limitation Act, 1963. But it is not a blanket rule that to entertain every complaint as there are some exceptions, In recent case before Maha RERA Authority, complainant (homebuyer) filed complaint after possession of flat in apartment.

The complaint was regarding- remaining work according to brochure of the project. In this case Authority denied to entertain complaint as possession was already given to homebuyers. Respondent put forth that all amenities in apartment which were given homebuyers is already completed and remaining will be completed in the reasonable remaining time. Maha RERA Authority further ordered developers to complete remaining amenities as soon as completing the project.[vi]

Conclusion- As mentioned above this is a very specific tribunal will help to resolve specific issues and will work towards best probability to reduce work load on the courts. In my opinion, there is competence of both the substantive and procedural elements to deal with real estate issues as RERA act works on rights of complainant and duties of registered developers whereas RERA Authority works for thorough and quick resolve the disputes between parties.

  2. Sh. Sukhbir Singh Grewal Vs. M/s. MVL Ltd. (2018/GN/Centrik/1/HRERA)
  3. Sh. Guru Prashad Chaudhary Vs. Assotech Ltd., (2018/UP/Centrik/53/UPRERA)
  4. Bindu R Jaisingh V/s Ekta Parksville Homes Pvt. Ltd. (2018/MH/Centrik/44/MAHARERA)
  5. Sh. Rochak Bakshi Vs. M/s. Assotech Limited, (2018/UP/Centrik/48/UPRERA)

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