With the rising instances of fraud by Real Estate Companies especially in regard to Residential projects. There has been an uptick in the claims filed by distressed purchasers who have, in some cases invested their life savings, in hope of a place to call home, but are met with delay notices and unjust demand notices. However, there are avenues available to buyers to seek redressal of their grievances. Now, homebuyers have multiple avenues for recourse, including RERA authorities, consumer forums, civil courts, and even the National Company Law Tribunal (NCLT), each offering distinct advantages in resolving disputes with builders and developers
When dealing with issues regarding possession and/or failure in compliance with Project essentials, the buyer now has options both under State RERA and Consumer Courts.
RERA Act provides significant protection for homebuyers, particularly in cases of delayed possession or project defects. Under this provision, if a builder fails to deliver the property on time or as per agreed specifications, the homebuyer is entitled to either withdraw from the project and receive a full refund with interest, or continue with the project and claim compensation for the delay
The Consumer Protection Act offers homebuyers additional legal recourse alongside RERA. Under the CPA, homebuyers can file complaints for deficient services, unfair trade practices, and overcharging. The scope of Consumer Courts is broader than RERA. The new act also offers options for collective action.
Although homebuyers can pursue parallel remedies under both RERA and CPA, the choice of forum should be strategic, considering factors such as complaint nature, property value, and desired relief.
