Disputes Resolution under RERA

A guide for homebuyers

The Real Estate (Regulation and Development) Act (RERA), which came into force on 1 May 2016, seeks to protect the interests of homebuyers as much as it hopes to boost investments in the real estate sector. The Act has given the Indian real estate industry its first regulator. It is now mandatory for each state and union territory to form its own regulator and frame the rules that will govern the functioning of the regulator, on the basis of the model rules framed under the central Act. Up until now, homebuyers' interests were in a limbo due to the dominance of land mafias in the real estate sector, a largely unorganised approach in dealings, lack of accountability, and long-drawn-out procedures in civil courts. Homebuyers have a point when they complain that many real estate transactions are lopsided and heavily in favour of developers. So, will RERA correct the imbalance that has been for so long the bane of the sector?

The provisions of RERA regarding accountability and transparency are stringent and will hopefully make real estate transactions simple. But for all these to be truly realised, it is absolutely critical that homebuyers are an aware lot – they need to understand the law and its implications so that they are vigilant about any wrongdoing and are able to get the resolution machinery going if needed. Many buyers know that RERA has been implemented and it protects consumers’ rights, but only a few know how to file a complaint. The success of the Act and its provisions depends largely upon its implementation. Hence, consumers need to know how to approach RERA – without this, its proper implementation is not possible. This is an alternative to consumer courts. RERA provides for filing of complaint if no case on the same matter is pending before consumer courts.