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Supreme Court said that people who have booked flats in a housing project can move a consumer courts against builders seeking damages for deficiency in service and registration of the project under the Real Estate Regulation and Development Act (RERA) of 2016.
Supreme Court bench of Justices UU Lalit and Vineet Saran said that despite RERA, homebuyers can move to consumer courts for relief. These include receiving compensation and refunds from such companies for delay in getting possession.
The order has come as a matter to rejoice for the home buyers who are upset over delay in builder projects or not getting possession of time.
Supreme Court bench of Justices UU Lalit and Vineet Saran, rejected the plea of real estate company M/s Imperia Structures Ltd on the ground that once RERA came into force, all questions relating to construction and completion have to be dealt with under this law and the National Consumer Disputes Redressal Commission ought not to have entertained the consumers’ complaints.
Bench referring various provisions of RERA and the Consumer Protection Act, cited various rulings and said that although the proceedings before the NCDRC are judicial, the Commission is not a civil court under the provisions of the Code of Civil Procedure (CrPC).
Supreme Court said,“Section-79 of the RERA Act does not in any way prohibit the Commission or Forum from hearing any complaint under the provisions of the Consumer Protection Act.”
The apex court disposed of the issue, stating that although this special law of 2016 has many provisions for the benefit of homebuyers, consumer courts still have the authority to entertain grievances of homebuyers if they fall under the definition of consumer under the law.
Supreme Court said that RERA does not legally obligate any person to withdraw any such complaint nor does the provisions of RERA constitute a mechanism to transfer such pending complaints to the authorities established under this law.
Supreme Court added, “The parliamentary intent is clear that a choice or discretion has been given to the allottee whether he wants to initiate proceedings under the Consumer Protection Act or under RERA.