Last Updated on May 2, 2020 by Legalseva.net
Basic overview of the Article.
This article is basically written for the remedies which a Homebuyers have when there rights are violated. Earlier homebuyers were facing a lot of problems relating to the purchase of the properties from builders or developers. There were trapped in the burden of interest in a hope of buying home or properties. This led to the great downfall in the Real Estate Sector. But after the certain amendments and Acts have been came into force there interests are now been secured. The homebuyers have the rights to approach to the various concerned authorities and can demand for there rights. These authorities include RERA or Real Estate Regulation Act, 2016, Consumer Forums and NCLT or National Company Law Tribunal.
Also Read- PROCEDURE FOR INSOLVENCY IN CHANDIGARH NCLT BENCH
Brief about RERA or Real Estate Regulation Act, 2016.
RERA or Real Estate Regulation Act, 2016 was passed by the Parliament in the year 2016 were 69 sections out of 92 sections were defined by the Government of India and finally in was enforced with all the sections in the year 2017. RERA Bill or Real Estate Regulation Bill was passed by the Parliament to safeguard the interest of the buyers, creditors and even the sellers, which were gradually went very down due to lack of proper regulatory authority. Before the enforcement of this act the builders were neither answerable nor held liable for any of the act done by them. This act encourages the real estate sector strong its base as the RERA or Real Estate Regulation Act, 2016 was established to regulate the free flow of the Real Estate Sector.
Also Read- Quick Facts Haryana RERA Panchkula & Punjab RERA Authority
Why RERA was needed? Who were mainly affected?
As per RERA or Real Estate Regulation Act, 2016 clearly mentioned its objective that the act came into force for the regulationandpromotion of the real estate sector, in efficient and transparent manner to protect the interests of the consumers and also to resolve the disputes in a speedy manner by establishing Appellate Tribunals as per directed by the RERA or Real Estate Regulation Act, 2016.
Also Read- Rera Provisions That a Consumer Must Know!
RERA or Real Estate Regulation Act, 2016 became into force as there was large number of buyers whose interests and trust are being broken from the real estate work. They were stuck under the debt trap due the builders and developers. The buyers those who are investing in this sector to purchase homes, shops, offices were mostly affected.
Also Read- Complaint M & N Confusion in Rera Punjab
The buyers mostly suffer as the builders who claims there completion of there project on the due date fails to do so, this result in the increase in the burden of the buyers as there interests rates are increasing, they are paying the rent of the property were they are residing etc. Other than buyers creditors were also affected by this as they were unable to receive the payments on the due date due the extension in the builder’s project. These were the main reasons due to which the Real Estate Sector goodwill went very low. To regain the interest of the buyers this act has been enforced in India, were every state has been directed to bring there own RERA or Real Estate Regulation Act, 2016 as per the directions mentioned by the central government, but according to there own economic territories. Hence, every state and Union Territories have their own RERA or Real Estate Regulation Act, 2016.
Also Read- Decoding Haryana Rera Panckula Authority 2019
How RERA or Real Estate Regulation Act, 2016 helped the Interests of the Buyers?
The Basic Instructions mentioned under RERA or Real Estate Regulation Act, 2016 upon the Builders were:
- Registration: All the builders or developers or agents or brokers have to get registered under RERA or Real Estate Regulation Act, 2016. All those projects which are going to start or are under the process even before the commencement of the act or those projects whose completion certificate are not been granted or whose project is more than 500sq. metres or more than 8 units are included under the RERA or Real Estate Regulation Act, 2016 and have to get registered within the three months of the commencement of this act. No builder can sell, advertise or offer or invite the person to purchase the property in any manner of the property.
Also Read- Faqs Rera Punjab Haryana Panchkula
- Clearly mentioning of the important documents relating to the property like most importantly the Carpet Area, commencement Certificate, Completion Certificate Occupation Certificate have to be clearly mention on the RERA website.
Also Read- Rera Punjab Form M and N Finally Settled
- Earlier the interest rate which were charged by the buyers were very high upon the non payment of the money on time, but after this act the interest rates will be equally charged by the buyers and sellers upon the non-payment of money and time or upon the late delivery of the property. In case of the extension of the project completion date the builders have to take proper permissions from the authority.
Also Read- Hombuyers and Insolvency
- The builder have to take the permission of 2 two third buyers in case of major modification in the project or transferring the project to another builder and even in case of minor modification they have to inform the buyers about the same.
- If the rules as per RERA or Real Estate Regulation Act, 2016 are not followed by the builder they will be penalties will be levied upon them as high as 10% of the project cost or 3 years of imprisonment or both.
Also Read- Legal Notice Before Rera Case for Any Deficiency
- The buyers will regain the trust in investing in the properties as the properties are being included in the RERA act so that in case of any dispute they have been provided with the required remedies.
- All the builder have to maintain a separate bank account of each and buyers for the same project so that the buyers have transparent check upon their funds.
Also Read- Rera or Consumer Forum?
- The builders have to take the burden of the any defects or major problems faced by the buyers for the term of 5 years and have to resolve it under the period of 30 days.
- In case the builder is unable to deliver the possession of the property to the allottee or fails to complete the project the allottee has the right to get back the refund of the money or they can demand interest for the late delivery of the property.
Also Read- Send Demand Notice Before Insolvency Case
- All the states have to make their own authorities for RERA or Real Estate Regulation Act, 2016 which will be guiding the disputes of the considered matters. These authorities will create a single window system for the builders were they have to submit all the applications and take the clearance of the projects
- The state will build a Real Estate Appellate tribunal which will be dealing all the matters relating to the disputes for the speedy justice and resolvent of the disputes. And the tribunals have to resolve all the problems within 60 days of the date the date of the registration of the complaint.
Also Read- Rera Punjab Haryana Appeals at High Court Chandigarh
How were the disputed handled before the RERA or Real Estate Regulation Act, 2016
Earlier when the RERA or Real Estate Regulation Act, 2016 act was not came into the force the buyer were not having any particular or specific rights against there property and the builders or developers or agents or brokers were not having any regulatory authority under which they have to work.
Also Read- Appeal to Haryana Real Estate Appellate Tribunal at Chandigarh
When any dispute occurs from the builder’s side to buyers the buyers have the right to file the complaint in the consumer forum. If the dispute of the property lies below the 20 lakhs then the suit can be filed in District Forum, if the dispute of the property lies between between 20 lakhs to 1 crore then the buyers have the right to file the suit between the state consumer forum and of the dispute of the property is above 1 crore the buyer has the right to file the complaint in the National Consumer Forum. These disputes shall include the interest to be received from the builder or the actual cost of the property.
The hearing of the case take very long period of time for its judgement which results in huge loss of time and money of both the builders and the buyers and even the creditors.
Also Read- Complaints Maintainable in Rera Punjab for Unregistered Projects
What if the Builder or the Developer goes bankrupt at the time of Delivery of the possession?
The other way to handle these types of disputes were NCLT or National Company Law Tribunal who will be considering the disputes or will be solving the insolvency cases under the Insolvency and Bankruptcy Code, 2016.
This law has been made to secure the interests of the homebuyers or flat buyers to make them secured financial creditors under Insolvency and Bankruptcy Code, 2016.
Also Read- Can Rera Authority Decide Refund in Punjab and Haryana?
The buyers can directly approach to the court if the dispute is above 1 lakh.
In case of filing a suit in National Company Law Tribunal or NCLT the buyers have to draft the complaint in groups rather than individually to make the impact. According to the Insolvency and Bankruptcy Code, 2019 the homebuyers have to be 100 or 10% of the total buyers if they want to draft complaint in the National Company Law Tribunal. These rules were not applicable upon those whose case has already been accepted but upon them the new cases.
Also Read- Register Your Complaint Online With Rera Panchkula
The Buyer who is considered as a secured financial creditor has the right to approach the National Company Law Tribunal or NCLT in case the builder has not delivering the property or on the non-completion of the property on the given time.
Also Read- Builder Delaying Possession. What Is Your Right?
What if there is a dispute between the sections of RERA and NCLT?
The Honourable Supreme Court in its landmark judgement clearly states that in the disputes raised between NCLT and RERA. The Supreme Court said Section 5 (8)(f) of the NCLT does not infringe any of the sections of RERA. And incase of any disputes arises between RERA and NCLT, the later prevails.
Also Read- Nclt for Homebuyers
For case specific advice, please contact top best expert RERA NCLT Lawyers of RERA Punjab & Haryana RERA Panchkula Authority in Chandigarh Zirakpur Derabassi Baltana Kharar Mullanpur etc.
This post is written Aman Dube.
More on 99888-17966.
