How to file a case under RERA?
The Real Estate (Regulation and Development) Act, 2016 was passed to establish a Real Estate Regulatory Authority and an Appellate RERA Tribunal for the purpose of the regulation and promotion of the real estate sector and also to ensure that the sale of plot, apartment or building, or real estate project happens in an efficient and transparent manner to protect the interest of consumers.
By Shivi Gupta in Property Law
Sept. 6, 2018, 5:55 p.m.
- 9590 Views
Possession of land and property is pervasively viewed as a mark of status. In India in particular,property is something that is kept on a pedestal in terms of marking one’s social standing. Due to this and a wide culmination of other factors, home buyers in India are seen to be continually rising in numbers.
The issue, however,being faced is that a home buyer in India is left at the mercy of builders. To protect homebuyers who often put their entire life earnings and savings at stake is why the need and importance of a legislation like RERA Law was recognised.
INTRODUCTION TO RERA, 2016
The Real Estate (Regulation and Development) Act, 2016 was passed to establish a Real Estate Regulatory Authority and an Appellate RERA Tribunal for the purpose of the regulation and promotion of the real estate sector and also to ensure that the sale of plot, apartment or building, or real estate project happens in an efficient an
transparent manner to protect the interest of consumers.
It also seeks to establish an adjudicating mechanism for the speedy dispute redressal in case of any infringement of the provisions provided under the Act.
Consult :Best Property Lawyers in India
WHEN CAN A BUYER FILE A RERA COMPLAINT?
- A buyer may file a RERA complaint with the RERA Authority for any violation or contravention of the provisions of the RERA Act or the rules and regulations which are made against any promoter, allottee or real estate agent.
- A buyer can consult Property Lawyers to file a RERA complaint about the following reasons:
- Delay in Possession: If a builder delays the delivery of possession of a property, the buyer has the right to file a complaint under RERA. The complaint can be filed to get immediate delivery of possession or to get a full refund of the amount paid along with interest.
- False advertisement: Where a false or misleading advertisement, notice or prospectus is displayed by the promoter on the basis of which an allottee has deposited a sum with the promoter, a RERA complaint can be filed by RERA Lawyers.
- Advance payment: A cap of 10% of the cost of the building, apartment or plot may be received as advance payment. If a builder asks for an advance payment more than this, the buyer can consult real estate development lawyer to know how to file a case in RERA.
- Improper registration of a project: It is imperative that all projects are registered under RERA, 2016 with the Regulatory Authority. If a builder has sold or is trying to sell an unregistered project, the buyer can file a RERA complaint by hiring home property lawyers.
- No details about the Project: All details regarding the project need to be updated on the website of the Regulatory Authority. RERA lawyers can be consulted to file a RERA complaint if this provision is not adhered to.
- In case of any structural defects in the workmanship and quality of the services, the promoter will have to compensate the amount paid by Structural defect:allottee.
- Transfer and assignment: A promoter can not transfer majority rights to any third party. However, this can be done if two-third majority of the allottees are satisfied with it.
Thus, these points help a person understand how to file case in rera or how to file complaint under rera.
RIGHTS OF BUYERS UNDER RERA, 2016
Section 20 of the Real Estate (Regulation and Development) Act, 2016 provides the rights of the allottees:
- To obtain complete information regarding the sale that has been signed with the promoter.
- To be aware of the stage-wise schedule of the project and how much of the project has been completed.
- To file a complaint about possession delay of apartment, plot or building
- To claim refund of amount with interest at a rate and in a manner that is prescribed and compensation in the manner provided under the Act
- To have the requisite documents and plans.
Suggested Read : RERA: How it impacts buyers
HOW TO FILE A RERA COMPLAINT?
Section 31 of RERA, 2016 states that any aggrieved person may file an application directly with the Regulatory Authority or Adjudicating Officer for the violation or contravention of the provisions of the Act or any rules and regulations formulated under this Act against a promoter, allottee or real estate agent.
Any person who has invested in a real estate project or has some legal interest in it can file a complaint in RERA. The RERA complaint procedure India includes the following steps:
1. The first step is to find RERA lawyers and file a RERA complaint with the appropriate authority under whose jurisdiction the property is situated.
2. The complaint under RERA is filed in the format prescribed under applicable State Rules.
3. A RERA complaint includes the following details:
- The name, address and other details of the buyer.
- Address of the project.
- Registration number of the property.
- The facts and statements relating to the delay in property.
- The response of project developer.
- The relief sought from the RERA Authority.
4. A prescribed fee is paid along with the RERA complaint. This fee varies in every State.
There is a RERA complaint online procedure that exists to file a rera complaint against builder. Different portals are in existence for different states. For instance, RERA lawyers can file a complaint under RERA on the UP RERA portal, RERA Maharashtra, RERA Delhi or on the portal of any other state’s RERA portal after giving proper rera legal advice.
5. To claim compensation from the builder, a RERA complaint is filed with the Adjudicating Officer in the same format. Additional details relating to the amount paid to the buyer, the compensation, and the interest over the amount, sought from the builder must be included in the RERA complaint. Under RERA, 2016, all complaints including the complaint for possession delay must be disposed of by the RERA Authority within 120 days.
APPEAL UNDER RERA, 2016
If the buyer is not satisfied with the decision of the RERA Authority or the Adjudicating Officer, the RERA lawyers can file a rera appeal on the buyer’s behalf, with the RERA Appellate Tribunal. This rera appeal must be filed within 60 days of the decision of the RERA complaint.
Further, an appeal can be filed against the RERA Appellate Tribunal’s decision with the High Court which has jurisdiction over the area in which the property is located. This second appeal must also be filed by RERA lawyers within 60 days of the decision of Appellate Tribunal.
RERA puts the liability on builder to deliver property possession within the decided time period. If the builder fails to deliver possession on time, he will have to return the entire amount paid by the buyer as well as interest at a rate mentioned in the contract. In case, the buyer does not take the money, the builder will be liable to pay monthly interest every month till the possession is delivered.
PENALTIES ON BUILDERS OR PROMOTERS UNDER RERA, 2016
Chapter VIII of RERA, 2016 lays down the offences, penalties and adjudication. The provisions are comprehensively dealt with under the Sections 59-72.
- Stringent penal provisions such as Section 59 of the Act deal with a scenario of contravention or non-compliance of the provisions of the RERA Act, orders, decisions, or directions of the Regulatory Authority or the RERA Tribunal.
- Non-registration of a project by a promoter with the Regulatory Authority shall mean that a penalty of up till 10% of the estimated cost may be imposed by the Authority.
- If this is not complied with, imprisonment of up to 3 years and a penalty of about 10% of the estimated cost or both, may be imposed as well.
- In cases where a promoter is furnishing false information to the Regulatory Authority, it shall invite a penalty of up to 5% of the estimated cost of the project or construction.
Certain penal provisions have also been laid out for contravention or violation committed by a real estate agent or the allottee as the Act has a holistic approach. These include:
- Non compliance of the Act can lead to cumulative penalty amounting to 5% of the cost of the plot, apartment or building which is determined by the Regulatory Authority.
- Further, if any orders of the Appellate Tribunal are contravened theninthat case, an imprisonment of up to 1 year with fine calculated per day of the persistence of the default that may extend up to 10% of the cost of the plot, apartment or building may be imposed.
Further Read : What to do if the Builder Delays Possession of Property?
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