This article will cover all about RERA, unregistered projects, and the procedure and grounds of the complaint that can be made against the unauthorized projects and buildings.
The Real Estate Regulation and Development Act of 2016 (RERA) requires the registration of all new and continuing projects under the Act to protect project stakeholders’ rights. Let’s see if the Act covers non-registered projects or not.
The main goal of the Real Estate Regulation and Development Act of 2016 (RERA) is to avoid builder-buyer disputes, re-establish homebuyers’ faith in the market, and encourage real estate transactions across the country.
To ensure that the promises are kept, RERA mandates that any ongoing projects that do not have Completion Certificates (CC) as of the Act’s start date must be registered with the relevant State RERA within three months. Within 30 days, the regulatory authority can accept or reject the application.
However, only developments larger than 500 square meters or with more than eight flats must register. RERA serves as a barrier between customers and greedy builders, and it also gives consumers access to a forum called RERA complaint.
Smaller developments of less than 500 square meters and fewer than eight units are excluded from registration under the Act. Nonetheless, these projects are not exempt from the Act’s other obligations. For example, land title defect liability applies to all real estate developments, whether or not they are registered under the Act.
Project Complaints Under RERA
RERA requires property developers and builders in India to register their projects with their respective State Regulatory Authority. It would also give customers a convenient way to track the progress of under-construction projects and file any complaints they may have against the builder or developer.
Any dissatisfied buyer who believes the builder or developer has defrauded them can register a complaint under Form ‘A’ of Section 31 of the Real Estate Regulation (and Development) Act against the builder or developer. The complainant must include their personal information, the builder project registration number, and the respondent’s contact information.
If the buyer is not satisfied with RERA’s response, they can file an appeal with the Appellate Tribunal within 60 days after submitting a complaint against RERA. Even if the buyer appeals to the Appellate Tribunal, the buyer may not receive a suitable resolution to their complaint. In such circumstances, the buyer has 60 days from the date of the Appellate Tribunal’s decision to file an appeal with the High Court.
Complaints Regarding Projects Not Covered By RERA
A handful of builders and developers have yet to register their projects with the RERA actions. Buyers of residential or commercial units in such complexes are experiencing various issues because they are unsure where to turn for help.
Buyers trapped with unregistered projects have no choice but to pursue legal action. They can either sue the builder in consumer court or file a criminal complaint against him for the unregistered project. They might also seek a refund from the developers by filing a lawsuit in the high court against the builders or the developer’s unethical behavior.
However, as the number of cases against unregistered projects by builders and developers in India grows, many state governments have requested a comprehensive plan to address, register, and respond to complaints from consumers who are stuck with builders who have not registered their projects. The Bombay High Court has recently requested that the state government explain an appropriate regulatory process for adjudicating complaints lodged by builders against unregistered constructions.
Buyers in India trapped with an unregistered property can finally breathe a sigh of relief. The government and the Real Estate Regulatory Authority appear to have decided to deal with the issues and complaints raised by buyers. The Bombay High Court has directed the state government to take appropriate steps and prepare a policy to address MahaRERA’s complaints under RERA actions about unregistered projects by builders and developers in Maharashtra.
For all those property buyers in India, a ray of light in the form of a regulatory structure to deal with complaints against unethical and unlicensed builders and developers is here.
How Do I Make a RERA Complaint About a Project?
To make a RERA Complaint under the injured party must take the following steps:
- Step 1: To make a complaint online, go to the State’s official website. Alternatively, an offline complaint can be filed.
- Step 2: Complete the complaint form with the specifics of the issue. Include the following details in your document:
- Buyer’s and builder’s or developer’s contact information;
- The project’s address and registration number;
- A concise summary of the facts as well as the claim’s basis; and
- The specifics of the requested relief.
- Step 3: Pay the required charge in accordance with state regulations across the country. The fees differ from one State to the next.
- Step 4: If the complainant is dissatisfied with RERA’s decision, they have 60 days from the date of RERA’s decision to submit an appeal with the RERA Appellate Tribunal.
- Step 5: If the RERA Appellate Tribunal’s judgment does not satisfy the complainant, a complaint can be filed with the High Court within 60 days after the RERA Appellate Tribunal’s decision.
What Are the Reasons for Filing a Complaint?
- Possession Delayed
The buyer has the right to register a complaint with the builder or developer, requesting immediate possession or a complete refund.
- False Advertisement
Let’s say a buyer is misled by a deceptive advertisement, causing him to act and deposit money with a promoter. In that situation, he has the option of filing a complaint against the builder, developer, promoter, and endorser.
- Payment in Advance
A builder or developer can only ask for 10% of the advance payment, according to the RERA Act of 2016, and if a builder asks for more than 10%, the buyer can submit a complaint.
- Registration of a project incorrectly
All projects must be registered under the RERA Act. If a builder tries to sell or market an unregistered project, a buyer might submit a complaint against the developer or builder. RERA serves as a shield to protect buyers’ interests in RERA-registered projects. A legal framework is urgently needed to manage concerns or conflicts relating to unregistered projects. To know more, get in touch with the experts of VakilSearch to get your queries cleared.
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