Introduction
Purchasing a property is a major economic and personal decision. However, unethical real estate practises have made homebuyers at risk. Governments around the world have responded by introducing laws to protect buyers and increase transparency. The Real Estate (Regulation and Development) Act, or RERA, was implemented in India in 2016 to empower homeowners, promote justice, and establish solid laws. This blog emphasises the significance of RERA in protecting buyers against unregistered projects and fraudulent promises. It delves into crucial provisions that safeguard buyers’ rights and assure fairness. It also investigates RERA’s positive influence on the real estate industry, including how it improves the homebuying experience and fosters customer trust.
Empowering Buyers: Navigating RERA’s Complaint and Appeal Process
RERA mandates Indian contractors and architects to register their projects with the State Regulatory Authority, which allows buyers to watch progress and file complaints. Complaints can be filed using Form ‘A’ of Section 31, which includes contact information, project registration number, and personal information.
- Process of lodging a complaint
To make a RERA complaint about a project, follow these steps:
- Visit the official website of your State’s RERA or file an offline complaint.
- Complete a complaint form with buyer, builder, or developer contact information, project address, registration number, facts summary, claim basis, and seek relief.
- Pay the required fee as per the regulations of your State. The fee amount varies across different States.
- If you do not agree with RERA’s decision, you have 60 days from the date of the decision to file a challenge with the RERA Appellate Tribunal.
- If the judgement of the RERA Appellate Tribunal is unsatisfactory, you have the option to file a complaint with the High Court within 60 days of the RERA Appellate Tribunal’s decision.
Remember to adhere to the specific timelines and procedures prescribed by your State’s RERA for filing complaints and appeals.
- The Possible Intentions for Filing a Complaint.
When it comes to real estate purchases, buyers confront a variety of problems. One concern is delayed ownership, which can be resolved by filing a complaint with the builder or developer and requesting quick possession or a full refund. Another issue is false advertising, since deceived consumers can file complaints against the marketer, builder, developer, and endorser after falling victim to misleading promotions, resulting in financial loss. According to the RERA Act of 2016, advance payment laws indicate that builders or developers can only require up to 10% of the advance payment, beyond which buyers have the right to register a complaint. Furthermore, the RERA Act addresses inaccurate project registration by mandating project registration for developers and prohibiting the sale of unregistered developments. Buyers can begin inquiries against developers in such instances, protecting their rights in RERA-registered developments. The existence of a legal framework is critical for efficiently dealing with challenges originating from unregistered initiatives.
Addressing Unregistered Projects: Providing Hope for Property Buyers in India
Despite the Real Estate (Regulation and Development) Act’s (RERA) deployment, certain builders and developers in India have failed to register their projects, thereby creating confusion for buyers. Those who purchased apartments in these unregistered complexes encounter a variety of issues and are confused where to turn for help. As a result, many customers take legal action against the builders, such as filing consumer court lawsuits or criminal charges. Another alternative is to get refunds by bringing cases in high court against developers’ unethical activity.
The Bombay High Court has directed the state government of Maharashtra to create a regulatory framework to address buyer concerns over unregistered developments. This action intends to resolve complaints against fraudulent builders and developers, provide hope to home buyers, and restore faith in the real estate market. The government and the Real Estate Regulatory Authority are collaborating to address these concerns and get a head start on resolving complaints against fraudulent builders and developers.
Concerning authority jurisdiction and the applicability of RERA to unregistered projects, Section 3(1) of RERA bans promoters from advertising, selling or offering to sell any plot, flat or building in a real estate project that has not been registered. Certain projects, however, are exempt from registration under Section 3(2).
The Maharashtra Real Estate Regulatory Authority (MahaRERA) initially asserted that it only had jurisdiction over complaints relating to registered projects. It later changed its software to accept complaints about unregistered projects . In subsequent judgements , MahaRERA’s jurisdiction over unregistered projects has been confirmed, and it has the authority to hold promoters of unregistered projects accountable for non-compliance with RERA duties.
The Haryana Real Estate Regulatory Authority (HARERA) has confirmed its jurisdiction over unregistered projects in Haryana. It was made clear that a promoter’s duties and obligations under RERA apply to both registered and unregistered ventures. The Authority further said that the issuance of completion or occupancy certificates does not relieve promoters of their duties, and that HARERA might hear allegations about non-performance of commitments.
The verdicts in Maharashtra and Haryana highlight the authorities’ jurisdiction to hear complaints about unregistered projects and hold entrepreneurs accountable for noncompliance with RERA obligations. The application of RERA to unregistered projects emphasises the necessity of promoters meeting their commitments regardless of the project’s registration status.
Conclusion
In India, the Real Estate (Regulation and Development) Act (RERA) serves as a critical safeguard, safeguarding homeowners from unregistered projects and fraudulent activities. RERA gives customers the ability to seek justice and hold fraudulent builders accountable by establishing a complaint and appeal mechanism. Buyers have a framework to redress issues and ensure fairness with the opportunity to register complaints with the State Regulatory Authority and further appeals.
Although the country’s several RERA Tribunals and High Courts have taken action against unregistered projects and considered them under RERA’s jurisdiction, no constructive and landmark ruling has been made to completely ban such projects. These possibilities demand an amendment to the legislation, stronger regulations, and action against individuals who sell properties without RERA registration.
RERA is a ray of hope, giving buyers a platform to defend their rights and seek remedies. Transparency and justice are developed as a result of these constant efforts, ultimately improving buyer trust in the real estate market.
Written By:
Lakshman Singh
BBA LLB (Hons.), Shri Ramswaroop Memorial University, Lucknow-Deva Road
References:
Real Estate (Regulation and Development) Act, 2016
Process of Filing a complaint against project under RERA Act – Legal Window
RERA REGIME – TEETHING TROUBLES – ARGUS PARTNERS
Can RERA authority take action against unregistered projects? – Vakil Search
