Government RegistrationRERA

RERA Complaint or Consumer forum (NCDRC): Which is better?

calendar27 Jan, 2020
timeReading Time: 4 Minutes
RERA complaint

RERA stands for the Real Estate (Regulation and Development) Act, 2016, which is introduced for the benefits of the buyers. RERA registration has provided safety to buyers against the builders. The Consumers earlier had an option to make a complaint before NCDRC (National Consumer Dispute Redressal Commission). Now, after the implementation of the RERA Act buyers can make RERA complaints related to property. In this blog, we are going to discuss the relevancy of RERA complaint, and procedure to make RERA complaint. Also, the importance of existing law under NCDRC.

To ensure property cover for RERA complaint

There is a necessity of Online RERA registration to ensure that the property is covered under the RERA complaint. The RERA complaint can be made under RERA act  against the builder if there is non-compliance of the following points:

  • The area of the property must be more than 500 square meters for the registration under the RERA Act[1]. The builders require the RERA registration before the advertising or launching the particular property project.
  • For the RERA Act, funds raised by the builders must be ensured and provide proof to the buyer that 70% of the total amount is submitted in a separate bank account and cannot be used for another investment.
  • After being certified by the architect, chartered accountant and by an engineer then only withdrawal of the separate fund can be possibly made by the builders.
  • The builders also require to obtain necessary consents before making advertisements for any new project. Now after RERA no early bookings or pre-launch offers can be made by the builders.

Procedure to file RERA complaint

The complaints are filed against the promoters, agents and builders under the RERA Act. Section 31 of the act provides the complaint procedure, which is to be duly followed by the complainant. It is mentioned below:

  • A complaint is made by the buyer against the builder or agent in an appropriate jurisdiction through a RERA lawyer.
  •  Fill the complete details on the complaint as per the guidelines provided by the prescribed state particularly where the project is situated.
  • The following details are required to be furnished on the RERA complaint
  1. The full details regarding the applicant and the respondent
  2. The address and the RERA registration number related to the disputed project
  3. The facts for the RERA complaint and brief statements regarding the grounds of claim and demand of the penalty
  4. Mention the relief claim and interim reliefs if any required.
  • Then pay the fees. The fees amount differs from state to state such as in Karnataka the fee amount is Rs 10000 whereas in Mumbai the amount of fees is Rs. 5000.
  • The Online RERA complaint is also can be made by visiting your state’s RERA website.
  • If the complainant is not satisfied by the order given by the RERA, then the option is to move to RERA Appellate Tribunal within 60 days of the order made by the lower tribunal.
  • Further, the complainant can go on to the High Court within 60days if not satisfied with the orders made by the Appellate Tribunal.

Read our article:Everything You Need To Know Regarding The RERA

NCDRC remain relevant after RERA

The RERA Act has been specifically implemented for the homebuyers and matters related to the property dispute, but it does not take away the right of the buyer to go to the consumer forums for seeking a remedy. The amendments were also made in the consumer protection act so that it can be more familiar to consumers. The buyers are now not bound to make the settlement with the developer by the process of arbitration. Presently the buyer can move to the forums and file the case under RERA act.

Difference between NDCRC and RERA

  • The complaint can be filed under NDCRC by a registered agency and the customer. Under RERA registration, any of the agencies and the complainant can file the complaint.
  • The complainant has to file the complaint to initiate the action taken under NCDRC. Whereas in RERA, the remedy can be guaranteed to the buyer whether the formal complaint is made or not. 
  • The buyer under NCDRC has first gone to district-level authority and afterward to state-level authority for the complaint value less than one crore against the developer. The buyer has the choice to file the complaint under the RERA after being registered for the amount less than of the one crore.
  • NCDRC has no power to conduct an investigation, but in RERA, the investigations can be conducted on the complaint of the buyer.
  • The NCDRC has only one court of the appeal, i.e. Supreme court, and in RERA there is an Appellate tribunal and then the High Court and lastly to Supreme Court.

Benefit for approaching RERA then NCDRC   

There are reasons which define that there is more ease in filing complaints with the RERA as compared to the NCDRC. The reasons are as follows:

  • The RERA complaint is made where the property is situated before the regulatory authority of the state, but in the case of the consumer complaint, there are no pecuniary limits defined particularly.
  • The RERA complaint has no pecuniary limits of filing the claim related to property, but in the case of the NCDRC, the complaint is made if the value of the property is more than one crore.
  • The complaint made before the RERA has the specific format for filing the RERA complaint, but in the case of NCDRC there is no prescribed format as such, the complaint is made while writing it on a plain paper.
  • Under RERA  the imprisonment is up to three years, but there is no imprisonment against the builder.

Penalties

The penalties under NCDRC are limited to the extent of imposing the fine, and there is no imprisonment awarded to the developer in such cases. The penalties provided under RERA registration are both the imposition of the fine or can be awarded the imprisonment for a certain duration. The RERA registration has the option to impose both the liability at the same time upon the developer.

Final thoughts

The consumers can avail the services through Corpbiz. The large numbers of lawyers in the panel of the company are ready to help the buyer regarding the RERA as well as consumer protection act laws and also helps in RERA registration. 

Read our article:All You Need To Know About RERA Registration Process

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