Remedies for buyer’s under RERA

 The RERA Act is considered as one of the specialized legislation passed by the Indian
Parliament for real estate sector. Its objective is to address grievances of buyers and bring
transparency and accountability of builders. This is in line with the vast and growing demand
in Real Estate sector to streamline this Industry and balance interest of Home Buyers and
Builders.

 RERA envisages Real Estate Regulatory Authorities to be created in each State for not only
promoting the interest of all the stakeholders under RERA but also to deal with their
grievances.

 Significantly, RERA entitles the aggrieved Home Buyers to claim the refund amount which
has been paid for purchase of a property, alongwith interest as may be prescribed by the
States or Union Territories, in case builders or developers default in delivery of possession,
in accordance with the agreed terms.

 RERA provides for penal provision and stipulated that he shall be liable to a penalty which
may extend up to 5% of the estimated cost of the real estate project as determined by the
concerned Real Estate Regulation Authority. Imposition of penalty in case of contravention
to the orders or directions of the Real Estate Appellate Tribunal has been made stricter as it
can extend to 10% of the estimated cost or three years of imprisonment or both.

 The law ensures that realty project is completed in time. If delayed, then the developer will
have to pay interest to the home buyer. Home-buyers have the choice of filing a complaint
with the concerned Real Estate Regulation Authority, in case the developer(s) defaults in
delivery of possession or for that matter contravenes any provisions of the RERA or the Rules
or Regulations made thereunder. A complaint may be filed by an Association of Home
Buyers.

 RERA affords the option to appeal against the decision of the concerned Real Estate
Regulation Authority to the Appellate Authority, and thereafter to the High Court and then
to the Supreme Court, and all in a time bound manner. As the proceedings are to be
concluded within a stipulated time frame, the adjudication mechanism can be opined to be
more expeditious as compared to the adjudication mechanism provided in the earlier
grievance redressal mechanisms.

 As per the RERA, the developer will have to keep 70% of the money collected from the
buyers in a separate Escrow Account to meet the construction cost of the project. This will
keep a control on developers who tends to divert the buyer's money, instead of completing
the Project for which money was collected & also ensure that the respective project is
completed in time.

Conclusion
With the changing legal scenario post the introduction and implementation of RERA, home buyers
and developers alike can look forward to a healthy and conducive legal environment for settlement
of disputes and redressal of grievances including compensation for any omission, negligence, delays
etc.

With a number of good judgements/orders coming from various state RERA authorities, one can
surely be rest assured that RERA is indeed a right step in the right direction. However there are still
certain grey areas that need to be addressed by RERA in the long run.