Homebuyers approach HC against change in RERA Authority jurisdiction in Refund Cases

Status as on 01/07/2019

A bunch of homebuyers have filed an appeal, through Centrik Legalistic LLP, the leading law firm for RERA and insolvency advisory, before the Hon’ble Punjab & Haryana High Court against the order passed by Haryana RERA Tribunal dated 02/05/2019 in the matter of Sameer Mahawar & other Vs. MG Housing Pvt Ltd.

In the said order, wherein it was held by the tribunal that the RERA authority does not have power to grant refund and such power shall be exercised by Adjudicating officer appointed u/s 71 of RERA Act, 2016.

This order is one of its kind and has vast implication in RERA litigation in every State. The above order by Tribunal has changed the working of both Gurugram RERA Authority and Panchkula RERA Authority. After the said order, both RERA authorities have adjourned all the pending matters and no cases have been heard in last 2 months. The authorities have started segregating the files where the refund has been demanded and where the possession with interest has been demanded.

After the said order, lot of practical issues arises which are yet to be shorted out are:

What would be status of RERA complaint claiming refund of money along-with interest and compensation? Whether such homebuyer have to file separate complaint before Adjudicating officer in case refund is denied?
What if the refund is not allowed by Adjudicating officer? Whether appeal shall be filed to RERA Tribunal or a separate complaint before Authority will be filed?
What would status of Refund orders which have been granted by the RERA authority?
As per RERA Act, the power to review/rectify the order is with RERA authority only, how Adjudicating officer shall review/rectify the order?
How an Adjudicating officer who is being appointed by RERA authority have more rights as compared to parent body?

There are other practical and law points which arose after the said order. The application to stay the said order has also been filed. The case is likely to come up for hearing towards the end of July, 2019.

Disclaimer:- The above brief is based on the available facts and published for general awareness. For more information, please contact us at support@centrik.in