Homebuyers have right to choose between RERA and Consumer Forum

Ramesh Agrawal ( LL.B. & CA )

Majority of Builders have cheated homebuyers in many ways including not giving possession in time, giving delay possession without any compensation for delay, etc. Nowadays homebuyers are gradually becoming active and filing cases against dishonest Builders. Some homebuyers are approaching Police , some are approaching RERA Court/authority and are approaching Consumer Forum.

In Consumer Forum generally Builders argue since RERA is there homebuyers can not file complaint against them in the Consumer Forum. For instance in a recent case a Builder namely M/s. Imperia Structures argued that all the cases related to construction and completion of its project should be dealt under the RERA Law. This contention has been denied by Supreme Court.

The appeal was filed by the M/s. Imperia Structures against the judgment passed by National Consumer Forum (NCDRC) on the complaint of 10 homebuyers of the project called ESFERA situated at Sector 13C, Gurugram, Haryana. The Project was launched in 2011 by Builder and lot of homebuyers booked with the hope of getting their dreamhome in time. Being disappointed with the delay they filed complaint in NCDRC alleging that despite the lapse of agreed 42 months there is no sign of possession of their dream homes in near future.

Hon. Supreme Court in its verdict pronounced that despite RERA in existence there is no bar for the Homebuyers to approach Consumer Forum for Refund & compensation. Supreme Court also imposed a cost of Rs. 50,000 to be paid by the Builder for each of the Complaint.

The judicial bench of Justices UU Lalit and Vineet Saran stated in its judgment “The RERA does not statutorily force a person to withdraw any such complaint nor do the provisions of the RERA Act create any mechanism for transfer of such pending proceedings to authorities under the RERA Act. Again, insofar as cases, where such proceedings under the CP Act are initiated after the provisions of the RERA Act, came into force, there is nothing in the RERA Act which bars such initiation. The absence of bar under Section 79 to the initiation of proceedings before a forum which cannot be called a Civil Court and express saving under Section 88 of the RERA Act, make the position quite clear,”

This is a landmark judgement for the homebuyers because it lights up the fact that homebuyers have a right to choose between RERA and the Consumer Forum for filing of their complaints against the builders.

Comments

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...

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...

Supreme Court Ruling Warns Homebuyers: Registration Is Not Ownership

CA Ramesh Agrawal The Supreme Court in a significant ruling has stated that only registering a property does not make someone its legal owner. The judgement, delivered in the Mahnoor Fatima Imran vs M/s Visweswara Infrastructure Private Limited case, has direct implications for millions of Indian homebuyers and investors. If someone has bought a property solely based on a registered sale deed, then have a look at the below points. Understanding the Law: Registration Does Not Equal Ownership “Ownership of a property comprises several aspects, of which registration is only one,” says Mr. Harsh Parikh, partner at a Law Firm, Khaitan & Co. Under Indian law, properties above Rs. 100 require registration, but that’s not all. “A buyer must also prove full payment, possession, and custody of original title documents,” he explains. Chairman and Director of Prime Developments, Mr. Rakesh Malhotra stated that “Registration provides prima facie evidence of a transaction, but it doesn’t c...

RERA Master

Search This Blog