Procedure to file a complaint under RERA

After the implementation of the Real Estate (Regulation and Development) Act (RERA), home buyers are optimistic that the new law will protect their interests. However, the moot question is, whether people know how to file a complaint or a case, under the new RERA rules.

A complaint under the RERA, is required to be in the form prescribed under the respective states’ rules. The complaint can be filed with respect to a project registered under RERA, within the prescribed time limit, for violation or contravention of provisions of the act or the rules or regulations framed under RERA.

Filing a case under RERA

Ameet Hariani, managing partner, Hariani & Co, points out that “As far as Maharashtra is concerned, the rules with respect to lodging a complaint with the RERA authority, have been notified. Any person who has an interest in the project, can file an application with the RERA authority. The application can also be filed online, as per the format available. The complainant must provide:

  • The particulars of the applicant and the respondent.
  • The registration number and address of the project.
  • A concise statement of facts and grounds of claim.
  • The reliefs and interim reliefs, if any, sought.”

To initiate proceedings before the adjudicating officer for compensation under RERA, the complainant needs to file a similar application. This application must also be made in the prescribed format and must contain particulars similar to those required in the application to the RERA authority, Hariani adds.

What to do with pending cases under the NCDRC?

Experts point out that real estate cases under the National Consumer Disputes Redressal Commission (NCDRC), can take a lot of time for final adjudication, owing to the huge volume of cases pending before the commission. The Real Estate Act, hence, may provide for expeditious disposal and prove to be more effective than the NCDRC, vis-à-vis judgment and realisation of compensation under Sections 12, 14, 18 and 19 of the RERA.

Time frame for dispute resolution under RERA

There is no specific time frame provided in the RERA, for filing a complaint. However, a complainant should not be complacent. Hariani explains, “Complainants under RERA, will require to comply with the time periods for initiating proceedings, as prescribed in the Limitation Act, 1963. The time periods under this Act vary, based on the specific claims. In addition, in order to seek urgent interim relief, it would be advisable to approach the RERA authority as soon as possible, after the action causing the complaint takes place.”

         The benefits of filing a case under the RERA

  • Chances of expeditious disposal of complaints.
  • Requirement of financial discipline by the promoters.
  • Transparency.
  • No ambiguity in area measurements.
  • Promoters are liable for compensation for delayed delivery.
  • Adjudicating mechanism to be in place.

RERA forms can be downloaded from following Link:

http://apnarera.com/rera-forms

Applicable penalties under RERA

Applicable sections Offences committed Applicable penalties
Section 9 (7)
  • Registration secured through misrepresentation or fraud
  • Breach of terms for which registration obtained
Revocation of Agent Registration Number
Section 62
  • Contravention of Section-9 & Section 10
Penalty of INR 10,000/-day during which the default continues extending up to 5% of cost of unit sold
Section 65
  • Contravention of orders of RERA authorities
Penalty up to 5% of cost of unit sold
Section 66
  • Contravention of orders of Appellate tribunal
Imprisonment for up to 1 year or with fine extend up to 10% of cost of unit sold

Benefits of RERA

Industry Developer Buyer Agents
  • Governance and transparency
  • Project efficiency and robust project delivery
  • Standardization and quality
  • Enhance confidence of investors
  • Attract higher investments and PE funding
  • Regulated Environment
  • Common and best practices
  • Increase efficiency
  • Consolidation of sector
  • Corporate branding
  • Higher investment
  • Increase in organised funding
  • Significant buyers protection
  • Quality products and timely delivery
  • Balanced agreements and treatment
  • Transparency – sale based on carpet area
  • Safety of money and transparency on utilisation
  • Consolidation of sector (due to mandatory state registration)
  • Increased transparency
  • Increased efficiency
  • Minimum litigation by adopting best practices

 

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