RERA Authority  V/S   CONSUMER FORUM  WHICH ONE SHOULD CHOOSE

RERA Authority  V/S   CONSUMER FORUM  WHICH ONE SHOULD CHOOSE

 

RERA (Real Estate Regulatory Authority) is a statutory body established under the Real Estate (Regulation and Development) Act, 2016 to ensure transparency, accountability, and efficiency in the real estate sector.

 A Consumer Forum is a government-established body under the Consumer Protection Act, 1986 AS  amended in 2019, created to address complaints related to deficiency in service , and unfair trade practice relating to  goods and services which include  real estate also .

 In the evolving real estate landscape, buyers frequently face issues such as possession delays, poor construction quality, and misleading commitments by developers. For such disputes, two primary remedies exist: RERA and the Consumer Forum. Determining which forum is appropriate depends on the nature of the grievance.

 This guide explains the difference between RERA and Consumer Forums, their advantages, and when filing with RERA is the most suitable option.

 What is RERA?

 RERA (Real Estate Regulatory Authority) is a specialized regulatory body created under the Real Estate (Regulation and Development) Act, 2016. It aims to protect homebuyers and enforce discipline among developers and real estate agents.

 RERA deals exclusively with disputes between homebuyers, developers, and real estate agents, including issues such as:

 Project delays

 Non-compliance with agreed specifications

 Failure to hand over possession on time

 Quality defects

 Misrepresentation in sales or project details

 Its jurisdiction is limited to real estate matters, making it a sector-specific, specialized grievance redressal authority.

 What is a Consumer Forum?

 A Consumer Forum operates under the Consumer Protection Act, 1986 (now 2019) and addresses consumer complaints across all sectors, including real estate. It provides remedies for:

 Defective goods or services

 Misrepresentation

 Deficiency in service

 Unfair trade practices

 Unlike RERA, Consumer Forums have a broader jurisdiction, allowing buyers to seek compensation, refunds, and penalties for a wide range of grievances.

 

Key Differences Between RERA and Consumer Forum

1. Jurisdiction

 

RERA: Handles only real estate-specific disputes—project delays, construction quality, title issues, and non-fulfillment of promises.

 

Consumer Forum: Deals with complaints across all goods and services, real estate being just one segment.

 

2. Timeframe for Filing

 

RERA: Complaints must be filed within the limitation period prescribed for real estate-related breaches (usually within the period after the cause of action arises).

 

Consumer Forum: Complaints can be filed within two years from the date of the dispute, with possible extensions granted for valid reasons.

 

3. Filing Process

 

RERA: Complaints are filed online through the respective state’s RERA portal. Requires documents and a nominal fee.

 

Consumer Forum: Complaints may be filed online or physically at the District, State, or National Consumer Commissions depending on the claim amount.

 

4. Scope of Relief

 

RERA: Provides sector-specific relief such as possession orders, interest for delay, refund, correction of structural defects, and enforcement of contractual terms.

 

Consumer Forum: Can order compensation, refund, penalties, and damages for mental agony or financial loss across various sectors.

 

5. Penalties for Non-Compliance

 

RERA: Can impose heavy fines, revoke registrations, or issue directions to complete or correct work.

 

Consumer Forum: Can impose penalties, order refunds and compensation, and declare products/services defective.

 

When to File a Complaint with RERA?

 

You should approach RERA when the issue directly relates to a real estate transaction, such as:

 

1. Project Delays

 

If the builder fails to hand over possession by the agreed date, RERA can penalize the developer and award interest or compensation.

 

2. Non-Compliance with Promises

 

If amenities, layout, size, or specifications do not match what was agreed in the contract or advertised.

 

3. Failure to Register the Project

 

Developers must register their projects with RERA. If they do not, buyers can file a complaint.

 

4. Title or Ownership Disputes

 

RERA can intervene where there are issues related to the legitimacy of the project’s title or land ownership.

 

5. Defective Construction

 

If structural defects or poor-quality construction are identified within the warranty period, buyers can seek corrective action.

 

6. Misconduct by Real Estate Agents

 

RERA also regulates agents and addresses fraud, misrepresentation, or unethical practices.

 

When to File a Complaint with a Consumer Forum?

 

A Consumer Forum is preferable when the issue extends beyond real estate-specific disputes or involves broader consumer rights. File here when:

 

1. Property Not Delivered Despite Repeated Reminders

 

If the builder outright refuses or delays delivery without valid reason, a Consumer Forum can award heavy compensation.

 

2. Faulty Services or Poor Fitments

 

Issues with electrical work, plumbing, interiors, or amenities may be better addressed through the Consumer Forum.

 

3. False Advertising or Misrepresentation

 

If the builder advertised amenities that were never part of the project, the Consumer Forum can penalize the developer for unfair trade practice.

 

4. Monetary Compensation

 

If your primary goal is to obtain compensation for mental harassment, financial loss, or additional expenses, the Consumer Forum is more suited.

 

Conclusion: Choosing Between RERA and Consumer Forum

 

Both RERA and Consumer Forums offer strong protections to homebuyers, but the choice depends on the nature of the dispute.

Key Judgments and Legal Principles

• M/s Imperia Structures Ltd vs. Anil Patni & Another (2020): The Supreme Court definitively held that the establishment of RERA does not bar a consumer from approaching the Consumer Forums.
  • Reasoning: Section 79 of the RERA Act only bars the jurisdiction of civil courts, and Consumer Forums are considered quasi-judicial bodies, not civil courts.
  • Reasoning: Section 88 of the RERA Act states that its provisions are “in addition to and not in derogation of” any other law in force, reinforcing that the CPA remains an available avenue.
  • Outcome: The court affirmed that homebuyers have a choice to initiate proceedings under either the CPA or RERA.
• Pioneer Urban Land Infrastructure Ltd vs. Union of India (2019): A precursor to the Imperiajudgment, this ruling declared that allottees (homebuyers) are financial creditors under the Insolvency and Bankruptcy Code (IBC) and have concurrent remedies available under the CPA, RERA, and the IBC.
• Newtech Promoters and Developers Private Limited vs. UP State RERA (2021): The Supreme Court held that the right of a homebuyer to seek a refund with interest in case of project delays is an “unqualified” right under Section 18 of the RERA Act, and the buyer has the option to withdraw from the project or stay and claim interest for the delay.

 

For real estate–specific grievances—like project delays, defective construction, title issues, or non-compliance—RERA is the most appropriate and effective forum.

 

For broader consumer grievances or claims focused on compensation for negligence, unfair trade practices, or deficiency in service, the Consumer Forum may be the better option.

 

Before filing, assess if it is related to seeking possession of  flat , refund of money , rera registration or any other issues falling in RERA Act  or falls within broader consumer rights (Consumer Forum). Choosing the right forum ensures faster, more effective resolution.