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

RERA Awards Rs. 65 Lakhs Compensation to Homebuyer for 9 Years Delay in Flat Possession

  CA Ramesh Agrawal In a recent decision, the Haryana Real Estate Regulatory Authority (HRERA) has directed a builder to compensate a homebuyer with ₹65 lakh for an inordinate delay of over nine years in handing over a flat in Gurugram. Key Highlights: Background of the Case : The homebuyer had booked a flat in 2013, with the developer promising possession within a stipulated timeframe i.e., 7 th December 2015. However, the possession was delayed by more than nine years. Developer's Justifications : The builder attributed the delay to unforeseen circumstances, including the COVID-19 pandemic, the demise of the chairman of environmental impact assessment (EIA) committee, and inadequate water supply. H-RERA's Verdict : After reviewing the case, HRERA rejected the developer's justifications, deeming them insufficient to warrant such a prolonged delay. The authority emphasized that the reasons cited did not qualify as fo...
Post a Comment
Read more

Municipality Demolishes Illegal & Unsafe Structures

  CA Ramesh Agrawal The Sambhajinagar Municipal Corporation (CSMC) has started an anti-encroachment campaign, to keep the city clean, safer, free up public space, etc. Details of the same are mentioned as below: - Drive Moves To Gulmandi Area: - After cleaning up areas like Beed Bypass and Mukundwadi, now the clean campaign has moved to Gulmandi area, which is busy & crowded market zone. The move shows that the Authorities are serious for removing illegal building all across the city. Illegal Constructions & extension demolished: - The Authorities have targeted illegal buildings & extension of around 25 Shops in bustling Rangar Galli Market & its surrounding areas. During the operation demolition of a run-down building was carried out with the presence of police. Ongoing Efforts : - Additional Municipal Commissioner, Mr. Santosh Wahule explained that this campaign in Gulmandi was carried out on the instructions of the Civic Chief G. Sreekanth. This clean campaign ...
Post a Comment
Read more

Mandatory Uploading of Occupancy and Completion Certificates

  CA Ramesh Agrawal In a significant move to enhance transparency and protect homebuyers' interests, the Odisha Real Estate Regulatory Authority (ORERA) has mandated that developers upload occupancy and completion certificates of housing projects onto its official website. This directive aims to ensure that residential projects comply with established norms and are fit for habitation.​ Definition of Certificates: Completion Certificate: A legal document confirming that a building has been constructed in accordance with approved plans and complies with all applicable regulations. Occupancy Certificate: A document issued by the local authority certifying that a building is suitable for occupation, ensuring it meets all necessary safety and habitability standards. Mandatory Upload Requirement: Developers are now required to upload both completion and occupancy certificates onto the ORERA website upon proj...
Post a Comment
Read more