Brief Note On RERA And Consumer Courts
The Delhi High Court has held in a batch of petitions moved by several real
estate companies (petitioners) against an order passed by the National Consumer
Disputes Redressal Commission that remedies available to homebuyers under
the Consumer Protection Act (CPA) and the Real Estate (Development and
Regulation) Act, 2016 (RERA) are concurrent.
This decision follows the Supreme Court's judgment in the case of Pioneer Urban
Land and Infrastructure Ltd. & Anr. v. Union of India &Ors; 2019 SCC Online SC
1005, where the Supreme Court had held that remedies given to allottees of
flats/apartments are concurrent and such allottees are in a position to avail
remedies under the CPA and the RERA, in addition to triggering the provisions of
the Insolvency and Bankruptcy Code, 2016
Difference between Consumer Court and RERA
||Only registered purchasers and allottees can
Registered agency/purchaser here means 'any voluntary consumer
association registered under the Companies Act, 1956 or under any other
law for the time being in force.
On the other hand ‘any of the agencies’ reflects the unregistered
association which cannot come within section 2(7)(i) of the act
hence cannot file a complaint.
|Aggrieved persons can file complaints
under Section 31 (1) of RERA Act.
Section 31. (1) - “Any aggrieved person may file a complaint with the
Authority or the adjudicating officer, as the case may be, for any
violation or contravention of the provisions of this Act or the rules
and regulations made thereunder against any promoter allottee or real
estate agent, as the case may be.”
For the purpose of this sub-section “person” shall include the
association of allottees or any voluntary consumer association
registered under any law for the time being in force.
The word “person” is defined under section 2 (zg).
||A complaint before Consumer Court needs to
be filed on a plain paper with documentary evidence.
||There is a specified format for filing a
complaint before RERA.
Every state's RERA official website will have its complaint section and
the buyer has to fill in the requisite details in the form prescribed.
||In the case of a consumer complaint you have
to file the complaint depending on the pecuniary limits. District
commission can entertain complaints upto Rs. 1 crore and state
commissions can entertain complaints only between Rs 1 crore and up to
Rs 10 crore;
In case if the value of property is more than INR 10 crore then you will
have to approach NCDRC.
|You can file a complaint before the
regulatory authority of the state where your property is situated. There
are no pecuniary limits while filing a claim under RERA.
||The Central Consumer Protection Authority (CCPA)
have an investigation wing, headed by a Director-General, which may
conduct inquiry or investigation into consumer law violations, as given
under section 15 (1) of Consumer Protection Act 2019.
The CCPA has been granted wide powers to take suo-moto actions, recall
products, order reimbursement of the price of goods/services, cancel
licenses and file class action suits, if a consumer complaint affects
more than 1 (one) individual.
|Investigations can be conducted on a
complaint by a buyer or suo moto against the builder.
Section 35(1) of the Act empowers the Real Estate Regulatory
Authority to make an inquiry and investigate in relation to the
promoter, allottee or the real estate agent, as the case may be.
“Section 35(1) of the Act provides that the Real Estate Regulatory
Authority can either suo moto or on a complain, initiate any inquiry
and investigation into allegations against the promoter, allottee or the
real estate agent, as the case may be. It is on the discretion of the
Real Estate Regulatory Authority to appoint one or more persons to make
an inquiry in relation to the affairs of the promoter, allottee or the
real estate agent, as the case may be.”
||Under section 41 Any person aggrieved by an
order made by the District Commission may prefer an appeal against such
order to the State Commission on the grounds of facts or law within a
period of forty-five days from the date of the order, in such form and
manner, as may be prescribed.
Under section 51 (1) Any person aggrieved by an order made by the State
Commission in exercise of its powers conferred by sub-clause (i) or (ii)
of clause (a) of sub-section (1) of section 47 may prefer an appeal
against such order to the National Commission within a period of thirty
days from the date of the order in such form and manner as may be
Provided that the National Commission shall not entertain the appeal
after the expiry of the said period of thirty days unless it is
satisfied that there was sufficient cause for not filing it within that
This implies that the finality of orders is faster under Consumer court
|Under Section 43(5) of the RERA Act, 2016
any person aggrieved by an order passed by the Real Estate Regulatory
Authority (RERA) can file an appeal. Such an appeal must state the
grounds of fact and law on the basis of which the RERA order is
As stated in Section 44(2) of the Act, the Appeal must be heard
and disposed off within sixty days of filing. If this time limit is
exceeded, the Real Estate Appellate Tribunal (REAT) will have to give
reasons to justify the delay. Thus, the Real Estate Appellate Tribunal
is under a statutory duty to dispose off cases in a time-bound
manner and not keep them pending.
“Under Section 58(1), any person aggrieved by any decision or order of
the Appellate Tribunal, may, file an appeal to the High Court, within
a period of sixty days from the date of communication of the decision or
order of the Appellate Tribunal, to him, on any one or more of the
grounds specified in section 100 of the Code of Civil Procedure, 1908:
Provided that the High Court may entertain the appeal after the expiry
of the said period of sixty days, if it is satisfied that the appellant
was prevented by sufficient cause from preferring the appeal in time.”
RERA v. Consumer Court
(RERA Or Consumer Court)
- Dedicated court.
- Higher probability of faster hearing.
- Better distributed for claims of any pecuniary limit.
|Taking cognizance of infractions by any party
- Can act on complaints or take suo-moto notice
- Can conduct investigations
|Ease of filing a case
||Ease of filing cases, with similar expected
results as that under the Consumer Protection Act.
|Success of litigation
||More or less similar but the Consumer
Protection Act scores better on track record.
||Good past record of litigation.
- consumer means any person who-
- buys any goods for a consideration which has been paid or promised or
partly paid and partly promised, or under any system of deferred payment and
includes any user of such goods other than the person who buys such goods
for consideration paid or promised or partly paid or partly promised, or
under any system of deferred payment, when such use is made with the
approval of such person, but does not include a person who obtains such
goods for resale or for any commercial purpose;
- Section 2 (zg) Person includes,-
- an individual;
- a Hindu undivided family;
- a company;
- a firm under the Indian Partnership Act, 1932 or the Limited Liability
Partnership Act, 2008, as the case may be;
- a competent authority;
- an association of persons or a body of individuals whether incorporated
- a co-operative society registered under any law relating to co-operative
- any such other entity as the appropriate Government may, by
notification, specify in this behalf;
- Section 15 (1) The Central Authority shall have an Investigation Wing
headed by a Director General for the purpose of conducting inquiry or
investigation under this Act as may be directed by the Central Authority.
- Section 35(1) - Where the Authority considers it expedient to do so, on
a complaint or suo motu, relating to this Act or the rules of regulations made
thereunder, it may, by order in writing and recording reasons therefor call upon
any promoter or allottee or real estate agent, as the case may be, at any time
to furnish in writing such information or explanation relating to its affairs as
the Authority may require and appoint one or more persons to make an inquiry in
relation to the affairs of any promoter or allottee or the real estate agent, as
the case may be.
- Section 43(5) - Any person aggrieved by any direction or decision or
order made by the Authority or by an adjudicating officer under this Act may
prefer an appeal before the Appellate Tribunal having jurisdiction over the
Provided that where a promoter files an appeal with the Appellate Tribunal, it
shall not be entertained, without the promoter first having deposited with the
Appellate Tribunal at least thirty per cent. of the penalty, or such higher
percentage as may be determined by the Appellate Tribunal, or the total amount
to be paid to the allottee including interest and compensation imposed on him,
if any, or with both, as the case may be, before the said appeal is heard.
- Section 44(2) - Every appeal made under sub-section (1) shall be
preferred within a period of sixty days from the date on which a copy of the
direction or order or decision made by the Authority or the adjudicating
officer is received by the appropriate Government or the competent authority
or the aggrieved person and it shall be in such form and accompanied by such
fee, as may be prescribed:
Provided that the Appellate Tribunal may entertain any appeal after the expiry
of sixty days if it is satisfied that there was sufficient cause for not filling
it within that period.
Written By: Mr.Aditya Kumar Upadhyay
Authentication No: AG30886097425-24-820