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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.

Few of the major concerns of the aggrieved home buyers are :-

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

Now, going by assumption that the RERA comes into actual force and the Authority and Appellate Authority are duly constituted and working, what will be a better remedy for a real estate home buyer? To approach the National Consumer Commission i.e. NCDRC or the Authority under RERA ? For the sake of convenience, let me take liberty to draw legal comparison between the two as follows :-

1. Jurisdiction (Where to file the case ):-

• NCDRC - For making a complaint to a consumer court, the home buyer will have to determine the pecuniary jurisdiction and file the case depending upon the subject matter and compensation claimed. For instance:- One can approach directly NCDRC in case the value of his subject matter and compensation claimed is above 1 crore. Also, after the recent judgments of the NCDRC even a group of buyers can jointly file a complaint before NCDRC and their cumulative claim will determine the pecuniary jurisdiction of the NCDRC. Therefore, now even a home buyer who has purchased a property worth 10 lacs can approach directly NCDRC in case he alongwith other buyers (who are together filing a case under Section 12 (1) (c) ) in total cross the benchmark figure of 1 crore.
• RERA- A home buyer can file the complaint with the Authority of the State where the property is situated.

2. Appeal (After the verdict, where will the appeal lie):-

• NCDRC:- After the verdict from the NCDRC (which is the highest consumer court), the only court of appeal for the parties is the Supreme Court.
• RERA:- After the adjudication of dispute by the Authority under RERA, an appeal will lie to the Appellate Authority, after Appellate Authority to the High Court (of the State where the property is situated) and then finally to the Supreme Court. Unfortunately, under RERA there is only strict time frame for deciding a matter for the Appellate Authority i.e. 60 days. Whereas, there is no time frame for the Authority to decide on a complaint filed before it.

3. Projects which have been delivered and the On going projects:-

• NCDRC:- One can still approach the NCDRC or other subordinate consumer courts for the unit/flat/apartment which has been delivered by the Builder but has any deficiency or other defect. Even since RERA has been diluted under the Rules by some states, home buyers for the on-going projects where the builder has obtained part completion certificate and are outside the purview of RERA, there the aggrieved home buyers can still approach the NCDRC or other subordinate consumer courts.
• RERA:- The projects where the completion and occupation certificates are granted are outside the purview of RERA. Even since RERA has been diluted under the Rules by some states, home buyers for the on-going projects where the builder has obtained part completion certificate will be outside the purview of RERA.

4. Other Legal remedy during pendency:-

• NCDRC:- In case a person has approached NCDRC or other subordinate consumer court for relief, there is no bar to approaching appropriate authority or initiating criminal proceedings against the Builder.
• RERA:- The Rules for most states, specifically take an undertaking from the Complainant at the time of making a complaint to the Authority under RERA, that the home buyer has not made any other complaint. This clearly restricts the right of the home buyer to claim relief.

Conclusion:-

Real Estate (Regulation and Development) Act, 2016 (RERA) no doubt is a much awaited legislation and will definitely bring transparency and accountability in the real estate sector but only time will tell how far the dispute resolution mechanism in RERA is going to be successful. Till that time aggrieved home buyers should consider approaching the NCDRC or other appropriate forums for redressal of their grievance.