The Real Estate industry is the backbone of the country and masses of investors always get gravitated towards the real estate to get the best return on their money. The recession in the real estate sector in the past decade has led to a series of problems for the home buyers who have booked a flat/unit/apartment in a real estate project, and delivery of property possession is delayed by the builder. Earlier, home-buyers used to approach only the National Consumer Dispute Redressal Commission (NCDRC) to file a complaint against the builder, but since the Real Estate (Regulation and Development) Act, 2016 (RERA) is enacted, a complaint under RERA is a preferred way to file a complaint against the builder. This article sheds some light on RERA vs NCDRC and draws the comparison between the NCDRC and RERA Authority in India.
RERA vs NCDRC: Which Court To Approach?
Any of the aggrieved customers may seek relief by filing a case in consumer court in India. On the other side, RERA is a new authority and recently launched. With both RERA and NCDRC available at the disposal of any homebuyer, one can choose a court which suits their case the best.
Under RERA laws and rules in India, a separate RERA authority is created to deal with matters relating to deficiency of services by the builder. The most common reason for filing a complaint under RERA is a delay in property possession by the builder. The homebuyer can also file a complaint under RERA if the builder violates any other provisions of the RERA Act, 2016 or any State RERA Rules. The RERA Authority and RERA adjudicating officer must hear complaints concerning the registered real estate projects, irrespective of their claim amount (which may vary). The RERA Act also allows homebuyers to file a complaint against real estate agents for their role in the sale of real estate projects.
On the other hand, NCDRC now entertains homebuyer complaints only if the claim is more than INR 1 Crore. NCDRC can accept any individual homebuyer complaints, class-action suits by multiple homebuyers against the same builder, and complaint by an association of buyers.
RERA vs NCDRC: The Main Difference Between Consumer Court And RERA
(Where to file the case)
|To file a complaint in NCDRC, the home buyer must determine the value of the property, and this must be above one crore for the jurisdiction to file the case under NCDRC.||Any home buyer can file the complaint with the RERA Authority of the state where their property is situated irrespective of the value of the property.|
|Appeal (After the verdict, where the appeal must be filed)||After the verdict from the National Consumer Commission, the only court of appeal for the aggrieved party is the Supreme Court.||After the adjudication of dispute by the Authority under RERA, an appeal will first lie under the Appellate Authority, after this, it will one can approach the High Court of the state where the property is situated and then finally one may approach the Supreme Court.|
|Projects (Ongoing and Completed)||One can approach the National Consumer Commission for the apartment or flat which has been delivered by the builder but has any defect or problem in them, the aggrieved home buyers can completely go to the NCDRC or other subordinate consumer courts regarding any complaints with ongoing projects that are still not completed.||All the projects where the occupation and completion certificates are granted before the RERA, 2016 are outside the scope of RERA. The rest all can file a complaint under RERA.|
|Legal Remedy (during pendency)||Under NCDRC there is no bar while approaching any appropriate authority for initiating any sought of proceedings against the builder to claim aggrieved person relief. One can file multiple complaints under various authorities for faster relief gain.||As per the rules for states, it takes explicitly an undertaking from the complainant at the time of making a complaint to the Authority under RERA, that the homebuyer has not made any other complaint regarding the same matter. It limits the right of any homebuyer to claim its respective relief and reduces workload and chaos inside authority.|
RERA Or Consumer Forum- Which To Choose?
|Applicability||Any matter of consumer interest (goods/ services).||Only to real estate projects.||
|Taking cognisance of infractions by any party||
|Ease of filing a case||
Ease of filing cases, with similar expected results as that under the Consumer Protection Act, 1986.
|Success of litigation||
||Consumer Protection Act, 1986 has a better track record.|
||Although RERA, under section 79, bars civil courts from hearing any matter that can be determined by the Authority or Tribunal, this may be legally questionable, as a number of orders issued at the level of a tribunal have been both, entertained and overturned by civil courts.|
RERA, 2016 envisages significant changes to the way in which the real estate sector operates in India. The Act aims at greater accountability, disclosure norms, investor protection, and e-governance. It also facilitated transparent and efficient working in the real estate sector by enforcing fair practices and accountability norms and fast-tracking dispute resolution.
It directionally sets the groundwork for the next round of transformation in the Indian real estate sector. Ultimately, if the real estate authority (and subsequently, the tribunal, in cases where there is an appeal against an order issued by the authority) can show to the stakeholders that this particular law has every capability, to penalize fraud/error committing promoters or realtors, or say even allottees, this all will boost the faith of common people towards the Authority under RERA and the real estate sector, as a whole.
LetsComply’s legal experts can help homebuyers in filing a complaint under RERA against the builders. To know more about RERA vs NCDRC, call us at +91-9717070500 or send us an email at email@example.com.