From Complaint To Execution: What Homebuyers Need To Know About RERA

The Real Estate (Regulation and Development) Act, 2016 (RERA), provides a specialised mechanism for dealing with many such disputes.

The Supreme Court, in Pioneer Urban Land and Infrastructure Ltd. & Anr. v. Union of India & Ors., summed up the purpose of the Act— timely completion of projects and protection of allottees through possession, compensation or refund.

It observed, “The object of RERA is to see that real estate projects come to fruition within the stated period and to see that allottees of such projects are not left in the lurch and are finally able to realise their dream of a home, or be paid compensation if such dream is shattered, or at least get back monies that they had advanced towards the project with interest.”

However, the first question is more fundamental:

Who Can File A RERA Complaint?

A RERA complaint is not restricted to allottees.

Section 31 allows “any aggrieved person” to file a complaint against a promoter, allottee or real estate agent for violation of the Act, rules or regulations.

However, whether a homebuyer qualifies as an “allottee” remains important as several key homebuyer remedies under the Act are specifically conferred on allottees.

RERA defines an “allottee” broadly. Under Section 2(d) of the Act, an “allottee” includes a person to whom a plot, apartment or building is allotted, sold or otherwise transferred by the promoter, as well as a subsequent purchaser. While a tenant is expressly excluded, the following categories may qualify as an allottee.

1. Original purchaser — A person to whom the promoter has allotted, sold or otherwise transferred a plot, apartment or building falls within Section 2(d).

2. Subsequent purchaser — Section 2(d) expressly includes a person who subsequently acquires the allotment through sale, transfer or otherwise. Telangana RERA has specifically held that a promoter cannot avoid its statutory obligations merely because the apartment was acquired through a subsequent registered transfer.

3. Buyer under a buy-back/return arrangement — In Vijay Goel v. Antriksh Infratech Pvt. Ltd., the Delhi Real Estate Appellate Tribunal held that a buyer did not cease to be an allottee merely because the arrangement provided a 25% annual return. The underlying allotment remains relevant.

4. A person purchasing several units or described as an “investor” — The label alone is not decisive. Rajasthan RERA has held that a former director who was subsequently allotted 20 flats in his individual capacity remained an allottee despite the developer arguing that he was an investor.

What Relief Can A Homebuyer Seek?

Depending on what has gone wrong, the following reliefs can be sought:

1. Refund: An allottee who wishes to withdraw due to delayed possession can seek refund of the amount paid with prescribed interest under Section 18.

2. Interest for delayed possession: If the allottee chooses to stay, the promoter must pay prescribed interest for every month of delay until possession. The developer ordinarily postpones the contractual possession date by pointing to a later RERA registration validity. The Supreme Court in Imperia Structures Ltd. v. Anil Patni held that the period for possession is reckoned with reference to the agreement.

3. Possession: An allottee may seek possession of the apartment, plot or building, while the association of allottees is entitled to claim possession of the common areas.

4. Compensation: Compensation under Sections 12, 14, 18, and 19 is adjudicated by the Adjudicating Officer, while refund and interest fall within the jurisdiction of RERA.

Compensation may include established losses such as mental agony and litigation expenses. An allottee who has already received a refund with interest is not necessarily barred from separately seeking compensation.

5. Rectification of defects: Section 14(3) provides a remedy for structural defects and covered defects in workmanship, quality or services brought to the promoter's notice within the statutory period.

6. Statutory compliance: A homebuyer can seek directions enforcing the promoter's duties, including project disclosures under Section 11, adherence to sanctioned plans under Section 14, and conveyance of title and handover of common areas and documents under Section 17.

One dilemma an allottee is often faced with is whether they are obliged to accept an alternative flat offered by the developer instead of seeking a refund. Where the right to withdraw and seek a refund has accrued, an alternative property cannot automatically be imposed upon the allottee. The Punjab & Haryana High Court has held that an allottee could not be compelled to accept an alternative plot instead of a refund.

What Documents Should A Homebuyer Keep Ready?

A homebuyer should preserve: (a) booking or allotment letter; (b) agreement for sale; (c) payment receipts and bank statements; (d) demand notices; (e) correspondence with the developer, including emails and WhatsApp messages; (f) brochures or advertisements containing relevant promises; (g) possession or cancellation letters; and (h) documents showing the promised possession date.

Emails and WhatsApp messages can be relevant but should not be treated as a substitute for stronger documentary proof.

Where an allottee does not have a registered agreement for sale, they are not barred from seeking relief under RERA merely for that reason, provided the allotment and transaction are otherwise established (as held by the Maharashtra Real Estate Appellate Tribunal).

How Late Is Too Late To Approach RERA?

The Act does not prescribe a general limitation period under Section 31 for filing a complaint.

The Chhattisgarh High Court has held that Article 137 of the Limitation Act, 1963, and its three-year limitation period do not apply to complaints before RERA or the Adjudicating Officer.

However, this does not mean that an allottee should indefinitely sit on their rights and the approach is not necessarily identical across States.

Haryana RERA has treated three years as a reasonable period while considering the timeliness of a complaint. The same caution applies to compensation claims. In another case, Gurugram Haryana RERA held that although RERA prescribes no fixed limitation period for seeking compensation, the claim must be brought within a reasonable time, determined on the facts and circumstances.

Where Should The Complaint Be Filed?

The complaint should ordinarily be filed before the RERA having jurisdiction over the State or Union Territory in which the project is situated.

The form, filing fee, and procedure vary between States. The nature of relief also matters: following the Supreme Court's decision in Newtech Promoters and Developers Pvt. Ltd. v. State of Uttar Pradesh & Ors. Etc., refund and interest claims fall before the Regulatory Authority, while compensation under Sections 12, 14, 18, and 19 is adjudicated by the Adjudicating Officer.

Is Having A Lawyer Mandatory For RERA Proceedings?

No, as Section 56 permits a person to appear before RERA, the Adjudicating Officer, or the Appellate Tribunal in person or through an authorised representative, including a legal practitioner. Legal assistance may nevertheless be useful where the dispute involves complicated contractual questions, substantial compensation, jurisdictional objections, or an appeal.

What Happens After A Complaint Is Filed?

Although the exact procedure, filing process, and prescribed forms vary between States, the broad stages of complaint, notice, response, hearing, and order remain similar.

For instance, in Karnataka, a Section 31 complaint is made in the prescribed form setting out the facts, grounds, and relief sought. Notice is then issued to the respondent, who is given an opportunity to reply, following which the parties are heard and an order is passed. Compensation proceedings before the Adjudicating Officer follow the separately prescribed procedure.

In Maharashtra, complaints are ordinarily instituted through Maharashtra RERA's online system, with pleadings and supporting documents filed through the prescribed process before the matter proceeds to hearing.

RERA proceedings are generally summary in nature. Strict evidentiary procedures applicable to an ordinary civil trial need not necessarily be followed.

However, proceedings must comply with the principles of natural justice, including notice and an opportunity for a hearing. Himachal Pradesh RERA has similarly held that cross-examination is an exception rather than the rule in RERA proceedings.

How Can A Homebuyer Execute A RERA Order If The Promoter Fails To Comply?

As a RERA order is not a decree of a civil court, it cannot ordinarily be executed as one. Instead, Section 40 provides a specific statutory recovery mechanism.

Where refund, interest, or compensation remains payable, the amount determined can be recovered as arrears of land revenue.

Further, failure to comply with an order or direction of RERA can attract a penalty under Section 63 of up to 5% of the estimated cost of the real estate project, calculated for every day during which the default continues.

In Karnataka, after the period allowed for compliance expires, the allottee can initiate execution proceedings before Karnataka RERA and provide the calculation of the amount remaining due. The statutory recovery process may culminate in a recovery certificate being sent to the concerned revenue authority for recovery.

Can A Builder Force A Homebuyer Into Arbitration?

The presence of an arbitration clause does not by itself take away the statutory RERA remedy. Punjab RERA has held, in a dispute, that an arbitration clause in an agreement for sale did not prevent homebuyers from approaching RERA.

Can A Homebuyer Approach A Consumer Commission Instead?

Yes, where the consumer complaint is otherwise maintainable. In Imperia Structures Ltd. v. Anil Patni, the Supreme Court held that RERA does not bar an allottee from invoking the remedy under consumer law.

However, the existence of concurrent remedies does not permit double recovery of the same relief. The NCDRC recently declined to entertain a complaint seeking substantially the same refund already granted by Karnataka RERA, applying the doctrine of election.

A homebuyer should therefore carefully consider the relief already sought or obtained before pursuing substantially the same claim before another forum.

What If RERA Does Not Grant Relief?

An aggrieved person can appeal an order of RERA or the Adjudicating Officer to the Real Estate Appellate Tribunal under Section 44, ordinarily within 60 days from receipt of the order. A delayed appeal may be entertained where sufficient cause is shown.

The next remedy depends on why the claim failed. An order of the Appellate Tribunal can be challenged before the High Court under Section 58 on the grounds specified by the Act. If the dispute is one that RERA itself cannot adjudicate, such as a genuine competing title dispute, the appropriate remedy may instead lie before the competent civil forum.

The key for a homebuyer is therefore to identify what went wrong, what evidence proves it, what relief is required, which forum can grant it, and how that relief can ultimately be enforced.