RERA vs Consumer Court vs Civil Suit Where Should Homebuyers File? & Across India

Both forum/consumer commission could be available to an allottee depending on facts. Supreme Court has decided cases where consumer and RERA remedies were raised together and Supreme Court clearly mentioned in those decisions that Consumer proceedings are not ousted by the mere fact that RERA Act exists and that allottees have concurrent remedies. However, there can be grievances where one forum is more suited than other. It would entirely depend on nature of your grievance, relief sought, facts relating to project and consumer forum having jurisdiction. If you’re a buyer and want refund and compensation from builder for delay in handing over possession, you’ld need to have your documents scrutinized before proceeding with either forum. Buyer filing consumer complaint doesn’nt automatically mean you should too.

RERA might not help you if your complaint is delay in possession. RERA Section 18 provides remedy if promoter fails to complete or hand over the property as per Agreement or certain other situations arise as mentioned in that section. If completion & handover has been delayed, file a complaint under section 18 and let that statute provide relief for your facts. Delay can also come under consumer law if it qualifies to be termed as deficiency in service and you fulfill certain criteria under consumer laws. If you seek refund along with interest or compensation or both along with possession, then your choice of forum would differ. Mr.BK Singh would first look at the buyers’ agreement and delays involved to suggest you preferred forum.

Can one file directly before NCDRC? You can file directly before NCDRC only if your claim falls under the original pecuniary jurisdiction of National Commission and you meet the criteria to initiate a consumer complaint. For example, National Consumer Disputes Redressal Commission has original jurisdiction to entertain complaints where value of the goods or services and the amount paid as consideration exceeds ?2 crore along with fulfilling criteria to file a consumer case. Compensation payable to you is not the sole factor in determining if your case falls under original pecuniary jurisdiction of NCDRC. NCDRC Lawyers would analyze facts, amount paid, parties involved in dispute and relief claimed to understand which consumer forum you can approach.

Technically both remedies are open to you but filing duplicate complaints for same relief would not be recommended. Hon’ble Apex court has also upheld the doctrine of election of remedies where party has multiple remedies. Whether that doctrine would apply in your facts would depend on what legal proceedings are filed, what relief you demand and what happened (if any) in prior legal proceedings. Multiple legal proceedings would invite arguments on maintainability, cost you more money on fighting litigation and potential issues of being contradicted if not analyzed properly. If you have a pending RERA complaint or order from any prior legal proceeding, disclose all facts and history of case before embarking on new legal proceedings. *

Civil suits can be initiated if dispute relates to any right or remedy which is not specifically assigned to the Authority/ adjudicating officer or Appellate Tribunal under RERA. Section 79. Jurisdiction of civil courts. Save as otherwise provided in this Act, no suit or other proceeding shall be instituted before any court or other authority with respect to any matter which can be adjudicated upon by the Authority or the Appellate Tribunal. Meaning simply, civil courts have been barred jurisdiction from hearing any civil suit relating to matters that can be heard by RERA authorities.

Yes. If promoter fails to complete or give possession of property as per Agreement or under certain other circumstances, the allottee who withdraws from the agreement due to delay is entitled to receive refund of the amount paid along with prescribed interest and compensation to be paid by the promoter under Section 18 of RERA. Filing for refund under section 18 of RERA is one remedy. You can also ask for refund under consumer law if delay in possession is qualified as deficiency in service. There is no instant answer of yes because builder did not deliver within x amount of months. Review your agreement, promised date of possession, extension from builder (if given), current stage of construction and what has happened since.

Consumer complaints have to be filed within two (2) years from the cause of action as per Section 69 of the Consumer Protection Act, 2019. However, Consumer Commission can entertain a complaint after the two years if you provide them sufficient cause for not filing it within two years. In real estate transactions, buyer and builder keep exchanging promises, agreements and sometimes refuse to accept flat delivery years after cause of action arose in typical delayed projects. For example, if builder gave you an “extension” to receive possession of your flat by 6 months, that would start your limitation from date of extension letter provided. Figuring out true cause of action in such cases would require legal expertise.

Real estate issues touch upon several laws (RERA law, Consumer Law, Contract law etc. ), several forums, have limitation periods and require factual evidence in some cases. Only after reviewing your documents would we be able to tell you if your main dispute is against delay, refusal of refund, deficiency in service, unfair trade practice, compensation or some other issue relating to the property. Advocate BK Singh and NCDRC Advocates would go through your documents and tell you if you need to hire a Consumer Commission Advocate. You realize value by knowing the correct forum you can approach and knowing how to correctly state your real problem as a consumer rather than going by presumption and filing a legal case.

Yes both Consumer and RERA forums have power to hear your dispute as Courts of Law. Once you file a legal proceeding, make a prayer for certain relief and let’s say receive orders from one forum, there are several legal principles which would help us understand what you can or can’t do at the other forum. All facts from previous complaint you filed, reply you filed and order passed should be disclosed to your lawyer before you start another legal proceeding. If you start a case in one forum based on facts, then go ahead and file another separate case in different forum without knowing the legal position of first case would result in objections that new case cannot be heard or you cannot claim similar relief as demanded in previous case. Every Case is different. Analysis of facts would decide if you can file in Consumer forum after approaching RERA.

Important details would be date of booking, total sale consideration, amount paid till date, promised date of possession, current stage of project, if builder applied for RERA registration, if you took a loan for said property and specifically what outcome you want from this dispute. Helpful documents are allotment letter, Agreement for Sale, Payment receipts, Notice asking builder to take action, any relevant email conversations and copies of previous legal proceedings if any started. Mr.BK Singh would first analyze if your dispute is majorly a RERA matter, Consumer law matter or a Civil matter governed by neither. If you know what you want in the first meeting, you save yourself from unnecessary legal expenses in the future.