There have been demands rising from time to time from different sections of the society asking the government of India to take some concrete steps to regulate the Real-Estate sector. Real-Estate Regulatory Act or RERA is the act passed by the parliament of India in the year 2016 is the answer to those demands. It not only seeks to boost the investments in one of the biggest contributors in the Indian Economy but also to protect the interests of thousands of home-buyers who have been suffering silently at the hands of powerful builders and developers in the absence of any guidelines.
What is RERA?
RERA is the first regulator of the Indian Real-Estate sector. It makes it mandatory for the builders and developers to get their projects registered and approved by the state authorities. This is applicable for the projects that are already in process. It further lays down certain guidelines that the builders/developers must abide by, making the different transactions and activities of the industry more transparent. RERA also provides an appellate jurisdiction to the aggrieved party, both buyer and the builder, to seek redressal against another party. Introduction of RERA has raised the trust value of the Indian Real-Estate in the NRI market. A significant raise can be seen in the NRI investment in the sector post the introduction of RERA.
When can a complaint be filed under RERA?
RERA gives the buyer a right to file a complaint with the RERA authority against the buyer in the following cases:
- Delay in Possession – One of the major grievances buyers have against the builders/developers is the delay in the possession of the property. And since the buyer already had paid handsome sum while booking the property, they are left with no choice but to wait. Not anymore. The builder is legally bound to hand over the possession at the date mentioned in the sale agreement. The buyer can demand compensation or the full reimbursement of the amount paid with interest.
- False Advertisement – If the buyer is not been accorded with the amenities and facilities projected in the advertisements, brochure or verbally, the buyer can file a case of cheating against the builder/promoter.
- The material used is not up to the mark – If the buyer finds out that the material used in the construction is of sub-standard quality and can pose a future risk to the well being, he can take the matters to the RERA court. Here, he can demand the builder to compensate for his loss, or ask the builder to refurbish the property free of cost.
- The project is not registered – One of the main guidelines of the RERA is the compulsory registration of all the projects. If any builder/ promotor tries to sell an unregistered property, a complaint can be filed pianist him with the RERA authority.
If the complainant is not convinced with the decision of RERA authority, he/she can take the matter to the RERA appellate tribunal within the 60 days of the decision of the RERA authority. Still unconvinced, he/she has the right to move to the high court within 60 days from the appeal made in the RERA appellate tribunal.