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RERA Act Disputes


Consumers are believed to be the King. However, in reality, it is hardly true in the case of homebuyers.  Till now, the Disputes arose, and many buyers have been running from pillar to post for getting them resolved. The matter used to become worse when any buyer failed to act on time, and his claim got delayed for some reason, or when he failed to keep the proofs of his claims made to the builder. Some buyers think that they can raise their claim in a court of law after a few years as filing a complaint is not time-bound. However, that is not true. So, if you are also thinking on similar lines, then think again. The court may refuse to register your complaint if it is delayed beyond a point.

Delivering quality artistry is the dictum for real estate developers apart from other deliverables. Real Estate (Regulation and Development) Act (RERA) has been enacted with an objective to protect the rights of the Home buyer. Thankfully, the buyers of RERA-registered projects will not have to run from pillar to post, including courts, for getting relief when there are defects (structural or otherwise) after they have taken possession of the newly-constructed property.

Severe penalties upto 10% cost of the project and 3 years Imprisonment is prescribed under RERA against defaulting builders. No more the builders can take the Home buyers for a ride.

Fraudulent Disputes

The following fraudulent practices are generally followed by the builders - 

  • Delayed possession
  • Not providing Completion Certificate (CC)
  • Sub-standard construction quality
  • Construction without attaining requisite approvals
  • Construction on unauthorized land
  • Fraud in the booking of your property
  • Any alteration in land use, layout plan, structures
  • Hidden charges
  • Enhanced External Development Charges (EDC)
  • Cancellation of the project
  • Forfeiture of the amount

How RERA Curbs Malpractices

  • Developers to deposit 70% of realised amount from allottees in a separate bank account. 
  • Developers to sell units only on the carpet area. 
  • The advertisement or prospectus issued by the promoters should mention the website address of the Regulatory Authority & registration number obtained.
  • Limit on receipt of advance payment etc. 
  • Sense penalties prescribed in case the developer violates the provisions of RERA. 
  • Some rate of interest will be payable by allottees & the promoter in the event of their respective default. 

Remedies Available to Buyers

A buyer who is the victim of the Unfair Trade practice of the builder under RERA can approach the following forums –

  • File a civil suit in a Civil Court
  • File a complaint before the consumer Forum
  • File a complaint before the Competition Commission of India
  • Approach to Regulatory Forums
  • File a Criminal Case


procedure for RERA


Frequently Asked Questions

What are the objects and reasons for which the Real Estate (Regulation and Development) Act 2016 has been framed?

The Real Estate Act is intended to achieve the following objectives:

  • To ensure good governance in the real estate sector thereby creating investor confidence. 
  • To secure accountability towards allottees and protect their interest;
  • To bring transparency, ensure fair-play and reduce frauds & delays;
  • To bring professionalism and pan India standardization;
  • Establish symmetry of information between the promoter and allottee;
  • To fix responsibilities on both promoter and allottees;
  • to establish a regulatory oversight mechanism to enforce contracts;
  • To formulate a fast- track dispute resolution mechanism.

What is the effective date of RERA?

Real Estate (Regulation and Development) Act is valid from 1 May 2017.

What are the conditions for the Applicability of the Act?

The act is applicable when the land size exceeds 500 sq.mtrs, and units exceed 8. No promoter shall advertise, market, book, sell or offer for sale for any real estate project in any planning area without first registering such a project.

Does it cover rental arrangements also?

RERA does not cover rental arrangements.

What is the time limit for the grant of registration by RERA?

Registration by RERA shall be granted within 30 days from the date of application.

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