Skip to main content

Causes of Litigation under RERA




One of the main causes of litigation against the builders in RERA is the delay in giving possession to the buyers. In that case, the buyers have only one way out i.e. taking appropriate legal recourse against the builder. Now that there is a separate authority for regulation of the Real Estate sector, the buyers have been rushing to RERA seeking justice. The scenario is changing with the implementation of the Real Estate Act, RERA has been of immense help to homebuyers all across the country.

Here are the major reasons which lead to litigations against a builder –

1.    Delays in delivery of projects
This is the most concerning issue with the homebuyers as it tends to create a lot of trouble for them. With the help of RERA, it is now easier for buyers to file a complaint and in contrast, inflexible for builders to divert from the delivery date of their project.

2.    No Delivery at all
There are many cases wherein the builder took booking amount and other installments and did not deliver the possession at all. There are also a number of litigation going on against builders where the builders have lured the buyers with fancy promises and fraudulently took the money but did not even start the construction at all.

3.    Delivery not as promised
It is a general practice in the Real estate sector that the builders lure buyers by putting forward various fancy promises which they don’t fulfill at the time of giving possession. The buyer have to run from pillar to post seeking delivery of their unit and when finally the unit is delivered it lacks all those facilities like Clubhouse, Swimming Pool,etc as promised by the builder in the beginning.

4.    Diverting funds
Builders have always been accused of diverting and misusing funds collected by buyers from booking of property. There are also many a number of infamous cases where builders have not delivered projects even after collecting amounts from buyers.

5.    Non disclosure of carpet area      
Another change that has been brought in by the RERA Act is the disclosing of carpet area to the homebuyers by the builders. This was not a compulsion for builders before the implementation of RERA. As the buyers are now more aware of certain things due to the Act, one of the clearly is carpet area. Not disclosing the correct carpet area could lead to a lot of trouble for builders.

6.    Hiding identity of co-promoter
Real Estate builders are now mandated to provide details of their co-promoters. Keeping it out of sight of RERA Authority can lead to severe actions upon builders by the Authority. The co-promoters of a project are allowed to file a complaint to the Authority against the promoter of the same project if, information regarding a co-promoter is obscured by the promoter while registration of the project.



Labels:

Comments

Post a Comment

Popular posts from this blog

ED Arrests Builder in Rs 2,000 Crore Fraud with Homebuyers

CA Ramesh Agrawal The ED has arrested four promoters of Earth Infrastructures Ltd. on 1 st June 2026 for Rs. 2004+ Crore fraud under the Prevention of Money Laundering Act (PMLA). The accused Avdhesh Kumar Goel, Rajnish Mittal, Atul Gupta and Vikas Gupta are the directors / promotors of the company. They were presented before a special PMLA court in Delhi. The court granted five days custody to ED for interrogation. As per the agency, Rs. 2004+ Crore has been collected by the Earth Group from more than 19,425 Home Buyers and Investors promising assured returns and timely delivery of the projects. Rs. 467 Crore has been diverted through Group Companies and other related individuals & concerns. The ED told that “Despite receipt of substantial funds from the buyers/investors, the projects were either left incomplete or possession of units was not handed over, thereby causing wrongful loss to the homebuyers and investors,”. The investigation of the agency further revealed that a...
Post a Comment
Read more

RERA SHOULD BE ABOLISHED - SUPREME COURT

  CA Ramesh Agrawal On 12 th February 2026, the Supreme Court expressed serious dissatisfaction with the functioning of the Real Estate Regulatory Authority (RERA), indicating that the institution, should be abolished in its current form. In this regard please note: - The Hon. Supreme Court strongly criticized the current functioning & working of RERA and observed that RERA should be abolished in its existing form & there is a need to rethink the role being played by it. The Apex court urged all States to examine who is actually benefiting from RERA’s functioning. The Bench comprising of Chief Justice of India (CJI) Surya Kant and Justice Joymalya Bagchi observed that RERA is helping defaulting builders rather than effectively protecting homebuyers or fulfilling its intended objectives. The Bench emphasized that States should revisit the original purpose behind the enactment of the RERA Act. As quoted by Bar and Bench, CJI Surya Kant stated “ All States should now think of...
Post a Comment
Read more

FIR Filed Against Builder for Alleged Fraud

  CA Ramesh Agrawal An FIR has been registered by The Economic Offences Wing (EOW) of the Delhi Police against Gurugram based real estate company Experion Developers Private Limited and its related entity, Experion Capital Private Limited, following a complaint filed by the Enforcement Directorate (ED), according to an official statement. The complaint raised from the ED’s investigation into an alleged money laundering case involving Religare Finvest Limited (RFL). During the probe, the ED found that former promoters of RFL, Malvinder Mohan Singh and Shivinder Mohan Singh, allegedly diverted around Rs 2,036 crore through entities under their control. As part of this diversion, the ED alleged that Rs 150 crore from RFL was used to acquire a 27.86-acre land parcel in Sector 62, Gurugram. On 4 th February 2020, the ED attached this land, which also included a 9.1-acre portion owned by Dignity Buildcon Private Limited. During further investigation, the ED observed that the Exp...
Post a Comment
Read more