Despite RERA, homebuyers can approach consumer courts for complaints: Supreme Court

New Delhi (ILNS): In a big relief to the home buyers, the Supreme Court yesterday in an important judgment said that despite the Real Estate Regulation and Development Act (RERA) of 2016, homebuyers can approach the consumer courts for complaints. These include receiving compensation and refunds from such companies for delay in getting possession.

The order has come as a matter to rejoice for the home buyers who are upset over delay in builder projects or not getting possession of time.

A bench of Justices UU Lalit and Vineet Saran, in its 45-page judgment, rejected the plea of real estate company M/s Imperia Structures Ltd on the ground that once RERA came into force, all questions relating to construction and completion have to be dealt with under this law and the National Consumer Disputes Redressal Commission ought not to have entertained the consumers’ complaints.

Referring to various provisions of RERA and the Consumer Protection Act, the bench cited various rulings and said that although the proceedings before the NCDRC are judicial, the Commission is not a civil court under the provisions of the Code of Civil Procedure (CrPC). The bench said: “Section-79 of the RERA Act does not in any way prohibit the Commission or Forum from hearing any complaint under the provisions of the Consumer Protection Act.”

Since the RERA law came into force, real estate companies have been saying that consumer courts do not have the right to hear home buyers’ complaints against them. The apex court disposed of the issue, stating that although this special law of 2016 has many provisions for the benefit of homebuyers, consumer courts still have the authority to entertain grievances of homebuyers if they fall under the definition of consumer under the law.

The bench said that RERA does not legally obligate any person to withdraw any such complaint nor does the provisions of RERA constitute a mechanism to transfer such pending complaints to the authorities established under this law.

The Court said: “The parliamentary intent is clear that a choice or discretion has been given to the allottee whether he wants to initiate proceedings under the Consumer Protection Act or under RERA.

In the present case, 10 home buyers of the ESFERA residential scheme, Gurugram, Haryana, filed a complaint with the NCDRC (National Consumer Disputes Redressal Commission) against M/s Imperia Structures Limited. They said that the project was launched in 2011 and they paid the booking amount in 2011-12. The company promised to complete the project in 42 weeks. As per the agreement with the company, each home buyer had paid around Rs 63.5 lakh, but even after four years, they did not see the completion of the project. In 2017 they approached the NCDRC. In 2018, the NCDRC ordered the company to return home buyers’ money in four weeks at a nine percent interest rate and pay Rs 50,000 each as law expenses.

-India Legal Bureau