Introduction
The enactment of the Real Estate (Regulation and Development) Act, 2016 (RERA) represents a paradigm shift in the legal framework governing the rights of home buyers in India. Prior to this legislation, buyers had limited recourse and faced prolonged litigation, often under the Consumer Protection Act or through civil suits. RERA, however, introduced a sector-specific mechanism that is both remedial and regulatory in nature. It offers time-bound adjudication, enforceable penalties, and a statutory guarantee of transparency and accountability in the real estate sector.
This article outlines the primary legal reliefs available to aggrieved allottees under RERA, with judicial interpretations by the Hon’ble Supreme Court where applicable, and provides insights particularly useful for those seeking assistance from a RERA lawyer in Pune or dealing with property legal concerns in Maharashtra.
Legal Remedies for Home Buyers Under MahaRERA
1. Right to Refund with Interest and Compensation (Section 18)
One of the most potent statutory protections under RERA is enshrined in Section 18(1)(a). If a promoter fails to complete or hand over possession in accordance with the terms of the agreement for sale, the allottee is entitled to withdraw from the project and receive a full refund along with interest.
Legal Provision:
“The promoter shall be liable on demand to return the amount received with interest at the prescribed rate… in case of default in delivery.”
The interest rate is generally pegged to the SBI highest marginal cost of lending rate plus 2%, ensuring deterrence against unjustified delays.
In DLF Universal Ltd. v. Bhagwati Narula (2023, SC order), the Apex Court reiterated that the buyer’s right to refund under RERA is unconditional upon showing of delay, and cannot be diluted by arbitrary builder clauses.
2. Right to Possession with Delay Compensation
If the allottee chooses not to withdraw from the project, Section 18(1)(b) provides that the buyer shall be entitled to monthly interest for every month of delay until possession is handed over.
This remedy is especially relevant where the buyer has taken a loan and continues to bear EMI liability without possession or utility of the asset. The RERA mechanism ensures that such buyers are compensated without the need to litigate under general tortious liability or contract law principles.
3. Compensation for Losses Due to False Advertisement (Section 18(2))
Builders often induce home buyers through misleading brochures, advertisements, or sample flats. If an allottee suffers loss due to reliance on such representation, RERA empowers the adjudicating officer to award compensation.
This provision holds promoters accountable not just for structural execution but also for pre-sale representations, which were previously governed solely by consumer law.
4. Defect Liability for Five Years (Section 14(3))
An often-underutilized relief under RERA is the defect liability clause. If the buyer discovers any structural or workmanship defect within five years of taking possession, the promoter is mandated to rectify it at no additional cost within 30 days.
If the defect is not rectified, the buyer is entitled to appropriate compensation, which may include cost of repair or diminution in value.
This right is statutory and enforceable without the need to prove negligence or contractual breach, thereby significantly lowering the evidentiary burden on the buyer.
5. Regulatory Oversight and Penal Powers
RERA is not limited to civil remedies. It incorporates a quasi-criminal framework for penalizing errant promoters. Notable provisions include:
- Section 59: Up to 10% of estimated project cost as penalty for non-registration.
- Section 60–63: Penalties for providing false information or violating regulatory orders.
- Section 64: Imprisonment up to three years for non-compliance with Tribunal orders.
These provisions empower the Authority to maintain systemic discipline, beyond individual redressal.
6. Time-Bound Adjudication (Section 29 & 71)
Another distinguishing feature is the time-limited adjudicatory mechanism. The Act mandates that the RERA Authority and Adjudicating Officer (AO) dispose of complaints within 60 days. This reduces the prolonged uncertainty that plagued litigation under conventional forums.
7. Relief Against Unregistered Projects
MahaRERA, in its various orders, has consistently held that even where the project is found to be unregistered (in violation of Section 3), the buyer can still initiate action for registration and claim relief under RERA. This is vital for buyers in Pune and across Maharashtra, where several developers operate on outdated or incomplete approvals.
Jurisprudential Developments: Supreme Court Position
The Hon’ble Supreme Court has, in several landmark cases, upheld and interpreted the scope of RERA reliefs:
Imperia Structures Ltd. v. Anil Patni [(2020) 10 SCC 783]
Held: Availability of remedies under RERA does not bar filing of complaints under the Consumer Protection Act. However, both remedies can co-exist, and the buyer has discretion.
NBCC (India) Ltd. v. Shri Ram Triveni Apartments Welfare Association (2022)
Held: Specific performance obligations under builder-buyer agreements are enforceable under RERA, and delays cannot be condoned merely on the ground of financial constraints.
Newtech Promoters v. State of UP (2021)
Held: The adjudicating officer under RERA is competent to decide claims for compensation under Section 18 read with Section 71. However, issues of title are to be agitated before civil courts.
These rulings affirm RERA’s primacy as a comprehensive remedy for buyers while respecting the jurisdictional limits of specialized adjudication.
Strategic Considerations for Buyers in Pune
Pune’s dynamic property market, with large-scale residential hubs like Wakad, Baner, and Kharadi, has seen significant litigation under RERA. Local nuances—such as regional office functioning, MahaRERA’s stance on delay clauses, and builder influence—make it critical to engage a RERA lawyer in Pune who understands the jurisdictional specifics.
Buyers are advised to:
- Ensure the project is registered under MahaRERA.
- Maintain documented proof of delay, payments, and communication.
- Choose between refund or possession based on financial viability.
- Initiate proceedings early to avoid limitation complications.
Conclusion
RERA offers a robust and targeted framework for the redressal of grievances faced by home buyers. With clearly defined rights, penalties, and time-bound enforcement, it outpaces traditional forums in both efficiency and impact. However, effective legal navigation is key. Whether seeking refund, compensation, or enforcement of builder obligations, an experienced property legal consultant or RERA lawyer in Pune is indispensable to ensure proper utilization of this powerful statute.