Aggrieved homebuyer due to delay or default in possession by builder

The Real Estate (Regulation and Development) Act (RERA) and the National Consumer Disputes Redressal Commission (NCDRC), both are available for filing a case or a complaint by the aggrieved homebuyer, against the builder / homebuyer, regarding delay or defect in delivering possession of property / homes. 

RERA has provided with a separate designated authority to deal with matters relating to deficiency in services in the real estate sector. Complaints relating to registered real estate property can be heard by RERA Authority and the adjudicating officer, irrespective of the claim amount.

NCDRC is the highest Consumer Forum in the country. It has jurisdiction to hear matters of aggrieved consumers pertaining to any defect in a good or service consumed by such consumer. The aggrieved homebuyer may also fall in this category.
 

Advantages of RERA over NCDRC:

1. It is easier to file a complaint under RERA because:

• A complaint can be filed before the regulatory authority of the State where the property is situated, whereas a complaint under NCDRC has to be filed according to pecuniary jurisdiction, which is above 1 Crore.

• A specified format is given to file a complaint before RERA, whereas a complaint before NCDRC has to be filed on plain paper

2. RERA is a dedicated court and has a higher probability of faster hearing

3. It can conduct investigations

4. Under RERA, an errant developer can be imprisoned, which is not the case under NCDRC
 

Advantages of NCDRC over RERA:

1. The only court of Appeal when one files such a matter in NCDRC is the Supreme Court, whereas, after an order by RERA, an appeal can be filed to the real estate appellate authority, and after this, to the High Court and then finally to the Supreme Court. Hence, the finality of orders including the process of appeal is much faster under NCDRC as compared to RERA.

2. Projects under which an apartment or flat has been delivered by the Builder to the Homebuyer but there exists some defect / problem in it should be taken under NCDRC, since even when the builder has obtained part completion certificate in ongoing projects with homebuyers, it falls outside the scope of RERA.

3. One can even approach the NCDRC in a class-action / joint action which would help in reaching the pecuniary jurisdiction of 1 Crore as a cumulative of the claims of all the persons in the complaint. The legal cost in a class action is also much lower than an individual action.

4.NCDRC has a better past record of success in favor of homebuyers than RERA does.

Both RERA and NCDRC have their advantages and disadvantages, however, considering the time it takes to attain relief fully, including the appellate stage and the success rate in favour of the homebuyers, it is suggested that one goes under NCDRC, especially if one can approach under class action. You may take the help of a lawyer to decide the best option, considering the facts and circumstances of your case.