Dispute Resolution under the RERA Act, 2016: A Game-Changer in Indian Real Estate
The Real Estate (Regulation and Development) Act, 2016 (RERA) was introduced with the objective of protecting homebuyers and promoting transparency, accountability, and efficiency in the real estate sector. One of its most impactful contributions has been the framework it introduced for dispute resolution.
Why Was RERA’s Dispute Mechanism Needed?
Before RERA, real estate buyers often had no choice but to engage in prolonged and expensive litigation in civil courts or consumer forums. Delays in possession, non-compliance with promises, and unclear grievance mechanisms left many buyers vulnerable.
RERA filled this gap by setting up a dedicated redressal mechanism for quick, sector-specific justice.
The Three-Tier Dispute Resolution Mechanism under RERA
1. Real Estate Regulatory Authority (RERA)
- Acts as the first point of grievance redressal.
- Buyers, promoters, or agents can file complaints for delays in possession, non-adherence to project specifications, false advertisements, etc.
- Proceedings are summary in nature with an aim to deliver justice swiftly.
2. Adjudicating Officer (AO)
- Appointed under Section 71 of the Act.
- Specifically empowered to adjudicate compensation claims relating to delay, interest, or loss due to false information or non-performance.
3. Real Estate Appellate Tribunal (REAT)
- Any party aggrieved by an order of the Authority or AO can appeal here.
- The appeal must be filed within 60 days.
- Further appeals lie with the High Court, but only on substantial questions of law.
Key Benefits of RERA’s Dispute Resolution Framework
- Speedy Resolution: Unlike traditional courts, RERA is designed to handle cases swiftly.
- Specialized Forum: Sector-specific knowledge ensures nuanced and practical decisions.
- Transparency: All decisions are published on the RERA website, enhancing accountability.
- Buyer-Centric Approach: Empowers homebuyers, often the weaker party in the transaction.
Practical Observations
- Many state RERAs have adopted a digital filing system, making the complaint process easier and more accessible.
- However, implementation varies by state — some RERAs are better staffed and more efficient than others.
- Certain grey areas still exist, especially regarding overlapping jurisdiction with consumer forums and civil courts.
Final Thoughts
RERA has gone a long way in rebalancing the scales of justice in real estate. Its dispute resolution mechanism is far from perfect, but it’s a step toward restoring the trust of the common man in the homebuying process.
As lawyers, developers, or buyers, understanding the nuances of this system is essential not just for compliance but for upholding ethical standards in the industry.
Let’s hope that with time, resources, and consistent policy support, the RERA dispute redressal framework becomes a model of justice delivery in other sectors too.