Real Estate Regulatory (Development) Act, i.e., RERA, was enacted by the government to curb the prominent issues with real estate dealing. RERA is one of the most anticipated reforms taken by the Indian Government to date that completely transform the way transaction took place in the real estate market. In this blog, we are going to explain the “Lodge a Complaint against Project under RERA or Non-RERA”.
Buyers under Real Estate Regulatory Act
These regulations ensure complete protection of the homebuyer against the fraudulent activities of the builder and developers. The implementation of RERA ensures the fair trade practices and provides rights to the affected buyer to counter the disputes with legal purview. That means now individual have the right to file compliant against project under RERA or non-RERA issues.
RERA has enabled the individual to file complaints against the corrupt builders for fraudulent business practices. The grievance control has been completely transformed after implementing a proper channel where help seekers can file and track their complaints with ease.
However, this facility is not available to those buyers who have completed the transaction before the implementation of this Act. In such a case, they have to register their grievances at the local authorities. In this article, we would look into the legal proceeding against the fraudulent activities of the builder, whose project is registered under the RERA Act,
Read our article:How is it beneficial to invest in Registered RERA Projects?
Legality for Filing Complaints against Project under RERA
As per RERA, the developers & real estate builders in India should register their projects with the state regulatory authority. It will enable the buyers to keep a check on the status of the ongoing projects and file any grievances if they have any dispute against the builder.
- Any victim has the right to lodge a complaint against project under RERA under Form A of Section 31 of the Act. The victim must enter legit detail in the form along with the registration number of the project or builder.
- If the buyer fails to get any positive response from the RERA, he/she can approach the Appellate Tribunal within 60 days of the complaint’s filing with RERA. Likewise, the victim can further take their matter to the high court within the same time frame if the Appellate Tribunal fails to render any judgment on the same.
- Section 31 RERA enables the victim to file a complaint against project under RERA or the alleged builder involved with fraud. The legal proceeding under RERA is civil suit in nature. Henceforth, you have to bear a court fee against the complaint that you are supposed to file. The area of flat or residential/commercial premises and the property’s market value acts as a parameter for the calculation of the court fee.
Many states have setup their respective e-portal for seamless filing of consumer’s compliant. The steps below would give you generalized idea of filing grievances against project under RERA through on online portal
Court Fee for Filing Compliant Against Project under RERA
The properties’ value is considerably higher in the Metropolitan cities. Henceforth, the court fee calculation on the traditional method may cause inconvenience to the victim because of the higher amount. However, to some extent, RERA has simplified the structure of the court fee so that victim can easily get started with court proceedings against the defaulter at a low fee.
As per RERA Act, the land or property area acts as a decisive parameter for calculating court fees. In general, the fee applicable for legal proceedings under the RERA act is calculated as INR 10 per square meter for the property located in the residential area.
List of Individuals that can Face Legal Proceeding under RERA
Following are the individuals against which complaint can be filed in the purview of the Section 31 RERA Act:-
- Builder or promoter
- Real estate agent
RERA Act confers the legal right to the person to file the complaint against the parties responsible for the contravention of the said Act. Reasons other than a violation of the act shall not be considered as the ground for filing a complaint against the alleged parities. Hence for filing compliant against project under RERA legal ground plays a vital role.
By referring Section 10, 11, 15, & 16 of the RERA Act you can get better understanding of the duties of real estate agent and promoter. This would enable you avert legal complications while filing compliant against project under RERA.
Complaints against the Projects Falling Outside the Ambit of the RERA Act
There are many builders & real-estate developers who work outside the regime of the RERA Act. The buyers of residential or commercial units in such project encounter innumerable issues due to the absence of a legitimate platform for grievance control. In such scenarios, buyers were left with no other option than registering their complaint with the local authorities.
The affected buyer can visit consumer court to resolve the dispute or leverage of court proceeding by filing a criminal case against the defaulters and claim refunds corresponding to the loss. The increasing number of complaints against the builders for unregistered projects has created a need for a legal framework where such matters can be resolved with care and due diligence. Currently, many state governments are in desperate need of a fool-proof plan through which the customer’s grievances can be settled in the best effective way.
The buyers who are stuck with the unregistered property may have to encounter unnecessary trouble to resolve their issue. However, the government and real estate regulatory authority has to work in tandem for making appropriate regulatory mechanisms that ensure the seamless filing of compliant against project under RERA.
Read our article:Highlights of Project Extension in RERA