prpri Causes of Litigation under RERA 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 home buyers all across the country.


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.


Author Bio

Qualification: CA in Practice
Company: Agrawal Gupta & Sahu & RERA Master
Location: DELHI, New Delhi, IN
Member Since: 12 Jul 2017 | Total Posts: 36

My Published Posts

More Under Corporate Law

Leave a Comment

Your email address will not be published. Required fields are marked *

Search Posts by Date

July 2021