prpri Legal Options to home buyers outside the ambit of RERA Legal Options to home buyers outside the ambit of RERA

Article on Legal Option to the home buyers outside the ambit of Real Estate Regulatory Authority (RERA) updated on 14.12.2020 after considering the Revised Pecuniary Jurisdiction of the Commission of THE CONSUMER PROTECTION ACT, 2019, ACT NO. 35 OF 2019, dated. [9th August, 2019.].

I have modified this article after considering the Pecuniary Jurisdiction of the Consumer Protection Commission  as per THE CONSUMER PROTECTION ACT, 2019, ACT NO. 35 OF 2019, dated. [ 9th August, 2019.].

A home buyer can register a compliant under Section 2(1)( c ) of Consumer Protection Act,1986 for deficiency in services. The term deficiency in services refers to any fault, imperfection, shortcoming or inadequacy in the quality, nature and manner of performance, which is required to be maintained as per the law.

The Hon’ble National Consumer Disputes Redressal Commission (NCDRC) recently has given ruling that buyers can seek refund from the developer if the possession of the house or a flat is delayed beyond one year. Depending upon the value of the property, buyer can approach National Consumer Disputes Redressal Commission (NCDRC)in the following Courts.

(i) If the cost of the properties worth of Rs.1Cr. complaints should be filed with the District Commission as per

(ii) If the properties worth between Rs.1Cr to Rs.10 Cr. Grievances should be listed with the State Commission,

(iii) If the value of the properties is more than Rs.10 Cr. A home buyer should approach the National Commission.

Recently renaming the District Forum:

The erstwhile District Consumer Disputes Redressal Form (DCDRF) has been renamed as District Consumer Disputes Redressal Commission (DCDRC/District Commission)”.

Further, the Domestic Building Contract Act, 1995 also protects home buyers rights in case a builder unreasonable delay the possession of the property. The Act oversees if the project construction is as per the approved plan and is completed within pre-decided time or not. Additionally it also administers the construction quality of the project.

Generally, the execution of” Real Estate Regulatory Authority (RERA) Act, 2016”has eased out the process of compliant registration in case of a delayed project.

Home buyers are also confident of faster and fair resolutions under the Law. However, it is imperative to do due diligence. One must only invest in a project by a creditable builder with an excellent past record and market reputation and stay abreast of the latest changes in the rules and regulations of the real estate sector.

Real Estate Regulatory Authority (RERA) Act, 2016, allows a home buyer a choice of seeking either interest on delayed possession or a complete refund of the money paid along with interest thereon. However, if the builder fails to provide the desired compensation severer penalties have been rolled under ” Real Estate Regulatory Authority (RERA) Act, 2016” covering from imprisonment to registration cancellation.

On 24th August,2020, The Hon’ble Supreme Court of India pronounced judgement in the case of DLF Southetn Homes Pvt Ltd ( presently know as BEGUR OMR Homes Pvt Ltd) and Annabel Builders & Developers Pvt Ltd on 24.8.20,said that builders must pay home buyers annual interest on cost of the flat for the period of delay in its delivery in addition to the penalty as per RERA Act.

Brief on Completion Certificate.

A Completion certificate is a critical and mandatory legal document that a builder should obtain from the Municipal Authorities after the completion of a building. The Completion Certificate attests to the fact that the new building is constructed and completed in accordance with all the safe norms and regulations laid down by the Building Act,1984.

Why Completion Certificate is required?

The completion certificate contains all the required details including the identification of the land, the location, the organization/builder , if the building has cleave to the building plan, and met all the standards of safety and regulations, distance from the road, distance from surrounding buildings, height and other criteria set by the municipal authority. In essence, the Completion Certificate certifies that the building has not violated any rules and norms in that locality According to the Apartment Ownership Acts in various states across the country , Completion Certificate is a compulsory document for an owner or builder in order to avail water and electricity supply.

When a home buyer purchases an apartment from the builder / developer, he should obtain a copy of the Completion Certificate from the builder/ developer when he is taking possession of the said home/apartment/Flat.

How is a completion certificate awarded by the Concerned Authorities?

After completion of a project, the local authority or concerned authority inspects and evaluates the premise against the approved building plan and awards the completion certificate, if all the rules are satisfied.

The builder can then apply to the concerned authorities or local authorities /departments along with a copy of the Completion Certificate to get water, electricity connections and other basic amenities for the project.

What is the difference between Provisional and Final completion Certificates and under what circumstances a Provisional Completion Certificates will be issue?

A Provisional Completion certificate is a temporary certificate usually awarded to a builder if they want to hand over an apartment /flats to the residents. But the project still has some pending work to be completed. However, the provisional certificate expires after (6) SIX MONTHS and should be followed by the builder applying for the final Completion Certificate.

A Final Completion Certificate is awarded after the construction is complete. Some of the rules and standards the builder should adhere to include Floor Area Ration (FAR) or Floor Space Index (FSI) limit, number of floors, structural design, quality of construction, distance from road, distance from surrounding buildings, height of the building , approved building plan and other criteria.

In some cases where the developer has not received a Completion Certificate (CC) , buyer can either approach the local authorities to get the completion certificate or can from a Resident’s Welfare Association (RWA) to speed up the process. Generally a buyer should not take possession of a house or building without a completion certificate , as it may lead to future legal complications such as eviction from the building or demolition of the building . So, it is important to insist the builder to acquire a completion certificate before releasing the final payment to the same.

Friends, here with I am providing an important judgements pronounced by Hon’ble Supreme Court of India on the above subject, kindly refer.

1. Charanjeet Singh vs M/S. Laureate Buildwell Pvt. Ltd. on 29 May, 2019

2. Deepak Agarwal & Anr. vs Three C Shelters Pvt. Ltd. & Anr. on 21 January, 2020,

3. Amit Katyal vs Meera Ahuja & Anr on 9 November, 2020,

Kindly refer and provide your valuable suggestion to my mail i.d. sitapathirao@yahoo.co.in  or my what’s app no. 98480 99490.

(Republished with amendments)

Author Bio

More Under Corporate Law

10 Comments

  1. Pradeep Joshi says:

    This is a very well Documented Article Highlighting RERA related issues. This is must read Article for all Home Buyers and should be circulated in all public platforms for Better reach and understanding of RERA .Thank You Sir for such a Great effort.

  2. SESHACHARY KOMANDURI says:

    The jurisdiction limits under the Consumer protection Act 2019 are revised and the author may like to indicate them and revise the article. Otherwise it is excellent and useful to the professionals

Leave a Comment

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

Search Posts by Date

August 2021
M T W T F S S
 1
2345678
9101112131415
16171819202122
23242526272829
3031