RERA Complaint & Penalties under RERA

Ashish M. Shaji

30 Nov, 2020

According to RERA Act, RERA complaint may be filed either with the RERA or with the adjudicating officer. The complaint can be against promoters, alottees and or real estate agents. It is noteworthy to mention here that now RERA registration has been made mandatory for all.

Some of the important points to be known about RERA Complaint

• To regulate transactions related to both residential and commercial projects and ensure their timely completion and handover, state-level Real Estate Regulatory Authorities (RERAs^[1]) has been established.
• Authorities established under the Act to settle the disputes between the allottee and promoter/real estate agent are:

1. The Real Estate Regulatory Authority
2. Adjudicating Officer
3. The Real Estate Appellant Tribunal

• Any aggrieved person including promoter or allottee or real estate agent may file a complaint with the authority or the adjudicating officer, for any violation or contravention of the provisions of this Act in person or through an authorized representative.
• The authority is also competent to issue any such directions from time to time to the promoters, allottees or real estate agent for the purpose of discharging its functions under the Act.
• The authority has been empowered to impose penalty or interest regarding any contravention of obligations cast upon the promoter, allottee, and the real estate agent and the authority are also empowered to order the recovery of such penalties.
• The authority has the power to act on a complaint Suo Motu by order in writing and giving reasons to call upon any promoter, allottee or agent to furnish any information or explanation in writing.
• The order made by the Appellate Tribunal is executable as a decree of the civil court and the Appellate Tribunal has been entrusted with the powers of the civil court.

RERA Complaint: What is the Process for Filing the Complaint under RERA?

1. The complainant (Promoter or Allottee or Real Estate Agent) can make a complaint by visiting State RERA Office Complaints officer or by online submission. The complaint under RERA should be filed in prescribed form as per the respective state’s rule.
2. RERA Officer will conduct their investigation and call for documents proofs or records and they will also hear the other side and give a fair chance.
3. An order will be issued for resolution by the Appropriate Authority.
4. An appeal can be filed against any direction, order or decision of the Authority or adjudicating officer, within 60 days from the date on which a copy of the direction or order or decision made by the, by the appropriate government, competent authority or any person aggrieved including association of allottee or any voluntary consumer association.
5. Adjudicating officers, Real Estate Authorities and Appellate Tribunals shall dispose of the cases within 60 days.
6. In case, the promoter approaches the Tribunal, then the appeal will be heard only after he deposits 30 percent of the penalty amount or such higher percentage as may be determined by the Appellate Tribunal or the total amount to be paid to the allottee including interest and compensation imposed on him if any or with both, as the case may be before the said appeal is heard.
7. If the complainant is still not satisfied, he may appeal to the High Court.

Penalties under RERA

There are multiple offences for which penal provisions are provided by the RERA Act, 2016. Some of the penalties under RERA are discussed below.

• In case where registration is secured through misrepresentation or fraud or if there is any breach of terms for which registration is obtained, then the agents’ registration number shall be revoked.
• In case of a default, penalty of 10000 rupees per day will be charged during which the default continues extending to 5% of the units cost.
• In case of contravention to the orders of RERA authorities, a penalty up to 5% shall be levied of the cost of the unit sold.
• In case of contravention of orders of the Apellate tribunal, the real estate agent who defaults in complying or contravenes with the orders of the appellate tribunal shall be punished with imprisonment for a term that may extend to 1 year or with fine or with both.

Conclusion

With the penalties prescribed under RERA, buyers may be more relieved in terms of accountability and responsibility from developers and agents. RERA complaint provisions have been a vital grievance redressal mechanism for the persons who have been affected badly by any action or inaction. 

Read our article: Statutory Provisions of RERA: Registration Process, Documents, Offences, etc.