Buying a house is a dream of all. Even after paying one’s hard earned money to the builder, the helpless allotees is made to wait endlessly in order to receive possession of the allotted unit. The oppressed allotees now have multiple counter measure at their disposal to seek respite.
Prior to 2016, the allottees could either go to Consumer Redressal Commissions or the District Courts. In the year 2016, the Real Estate Regulatory Authority (RERA) was formed. In the year 2018, the aggrieved allottees could move before the National Company Law Tribunal against the defaulter builders.
In 2019, The Hon’ble Supreme Court in Pioneer Urban Land and Infrastructure Limited & Anr v. Union of India & Ors. held that remedies under the Consumer Protection Act,2019 , Real Estate Regulatory & Development Act, 2016 as well the Insolvency and Bankruptcy Code, 2016 (IBC) are concurrent. Hence an aggrieved buyer has three remedies at its disposal.
| RERA | Consumer Redressal Commission | NCLT | |
| Act Governed By | Real Estate Regulation and Development Act,2016. | Consumer Protection Act, 2019. | Insolvency Bankruptcy Code, 2016. |
| Objective of the Forum | To secure the rights and interests of the home buyers, increase the transparency in the working of the construction companies, and to establish an adjudicating mechanism for speedy dispute redressal. | The commission provides speedy Redressal to “CONSUMERS” who claim Unfair Trade Practices. Home Buyers were included in the Act by interpreting the word “Services” to include construction. | NCLT adjudicates disputes related to companies both under the The Companies Act as well as Insolvency Bankruptcy Code. |
| Approached under Section | The applicant can move under Section 31, RERA 2016. | The Applicant can file a Complaint and also attach the necessary documents in support of his Complaint. | The aggrieved allottee can move under Section 7 against the builder/ Developer Company. |
| Who can approach ? | An individual buyer can also approach. | The forum can be approached by any Consumer or group of consumers having the same cause. | The NCLT can be approached if there are multiple aggrieved allotees for a particular project and they are seeking relief. |
| Pecuniary Jurisdiction | No limit | 1. District Consumer Disputes Redressal Commission :
Claim < Rs.1 Cr 2. State Consumer Disputes Redressal Commission Claim < Rs.10 Cr 3. National Consumer Disputes Redressal Commission Claim > Rs.10 Cr
|
Claim >Rs. 1 Crore |
| Relief Provided | RERA entitles the aggrieved allottee to claim the refund amount which has been paid in consideration of a plot, apartment etc. along with interest in consonance with the terms in the agreement in case of default in delivery of possession in accordance with the terms of agreement for sale or due to discontinuance of business or any othe reason | Scope is limited, hence the process is expeditious affair. | After NCLT admits the application, IRP manages the affairs of the company. In case of failure of CIRP, liquidation would be commenced. NCLT monitors the entire process. |
| Time taken for Disposal of Case | 6 months – 1 Year | 4-5 Years | 6 months – 1Year |
| Execution of Orders | Need to approach High Court under Sec 226 for execution | Can execute their own orders. | Can execute their own orders. |
| Leading Case Law | Experion Developers Pvt. Ltd. V. State of Haryana and Ors.
Janta Land Promoters Private Limited v. Union of India and Ors. |
M/s M3M India Private Limited & Anr v. Dr. Dinesh Sharma & Anr | Col. Vinod Awasthy v AMR Infrastructure Ltd. |
Following relief can only be provided by RERA and not Consumer Redressal Forum or NCLT :
- RERA can issue directions for completion of project in consultation with the respective State Governments.
- RERA has the authority to blacklist the defaulters Builder/Developer which prohibits the builder from undertaking new projects.
- Anybody who is not even a consumer can also approach RERA.
Analysis :
One must also pay attention to the points given below while deciding on which forum to approach :
- If a person seeks performance of contractual obligations or compensation in respect thereof, then both RERA & Consumer Disputes Redressal Commissions can be a better and effective remedy. An aggrieved allotee can parallely file a complaint with RERA to blacklist the Developer and seek the reliefs which Consumer forum cannot prove and can be provided by RERA.
- Also if the project/construction work is on the verge of completion, RERA would be a more effective remedy, especially if Flat Purchaser/Home Buyer desires to obtain possession of the unit which is allotted to him/her along with the compensation amount.
The content IN this article is ONLY to provide a general guide to the subject matter. We at Ab Initio can help you figure out the right course of action.
