Legal experts say that aggrieved home buyers file a case in RERA first and then approach the RERA Appellate Tribunal and then the high court and then ultimately the Supreme Court if their dispute is not solved.
Understanding Consumer Forums
Consumer Forums, established under the Consumer Protection Act, 1986, are designed to protect the rights of consumers. These forums have three tiers: District Consumer Forum, State Consumer Commission, and National Consumer Disputes Redressal Commission (NCDRC).
Advantages:
- Wide scope: Handles complaints related to various products and services, including real estate.
- Consumer-friendly: Procedures are relatively simple and less formal.
- Collective action: Allows multiple consumers to file a complaint jointly.
Disadvantages:
- Slower process: Cases can take longer to resolve compared to RERA.
- Limited expertise: While consumer forums handle a variety of complaints, they may lack specialized knowledge in real estate matters.
Understanding RERA
RERA, enacted in 2016, is a specific legislation aimed at regulating the real estate sector. It establishes state-level regulatory authorities to protect the interests of homebuyers.
Advantages:
- Specialized focus: Exclusively deals with real estate matters, ensuring in-depth understanding of the sector.
- Faster resolution: RERA tribunals are designed to provide quicker redressal for homebuyers.
- Preventive measures: RERA aims to prevent disputes through mandatory registration of projects and disclosure requirements.
Disadvantages:
Limited scope: Can only address issues related to real estate projects registered under RERA.
Newer authority: RERA is still evolving, and there might be challenges in certain areas.
Which is Better for Homebuyers?
The optimal forum for a homebuyer depends on the specific nature of the complaint:
- Complex cases with high value claims: NCDRC might be a suitable option due to its higher monetary jurisdiction.
- Issues specific to real estate development: RERA is likely to be more efficient and effective.
- Time-sensitive matters: RERA’s quicker resolution process might be advantageous.
Crucially, the Supreme Court has clarified that homebuyers can approach both Consumer Forums and RERA simultaneously. This provides flexibility to homebuyers in choosing the most appropriate forum for their case.
Key Considerations for Homebuyers
- Jurisdiction: Ensure your case falls under the jurisdiction of the chosen forum.
- Timelines: Consider the expected duration of the legal process.
- Reliefs available: Understand the remedies offered by each forum.
- Collective action: If you are part of a group of affected homebuyers, consumer forums might be beneficial.
- Legal advice: Consult with a legal professional to assess your case and determine the best course of action.
By understanding the strengths and weaknesses of Consumer Forums and RERA, homebuyers can make informed decisions when seeking redressal for their grievances.
Disclaimer: This article is intended for general knowledge and informational purposes only, and does not constitute legal advice.
join For Updates