Home ownership in India has always been a big dream. To realize this long-cherished dream, a home buyer may either acquire the property through a home loan (or) invest huge sums of money in the property, in most of the cases this can be his/her life-long savings.
Thanks to no proper regulations in the real estate sector and no proper grievance redressal mechanism in place, the dream of the average middle class family to own a home, has of late become a nightmare. Home Buyers in India have always been at the receiving end of innumerable malpractices at the hands of many real estate builders or promoters.
The biggest investment of ones lifetime is more often than not either compromised with or ends up in the legal battle. The number of cases in the consumer courts by aggrieved home buyers has skyrocketed of late.
“A Home buyer in India is often left alone at the mercy of the builders.”
Delayed possession, default on design and construction parameters, mismatch of space in the guise of floor area & carpet area, the list of woes for home buyers seems to be endless.
With the introduction of RERA act, looks like things are slowly changing for the good.
Though it is too early to call RERA Act a success, but the recent verdicts given by the RERA authorities, may make home-buyers something to cheer about!
(Click on the above image to read the full article – Source : ET Realty)
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has recently asked a builder in Mumbai to return an advance amount of Rs 26.15 lakh to a consumer, this is the first such order since the real estate law came into effect in the state (Maharashtra) on May 1.
As per the RERA authority, the complainant (Home buyer) had booked the flat in 2012-13 and was assured by the developer that the project would be completed in 2016. As the building has not yet been completed, the property buyer filed a complaint through Maharashtra RERA portal and got the verdict in his/her favor.
One more aggrieved home buyer (an elderly women) has approached the RERA authority and got the verdict in her favor.
(Click on the above image to read the full article – Source : ET Realty)
As per the complaint received by the authority, the property buyer had booked a Flat worth Rs 53 lakh in Feb 2013, and till march 2016, she had made payments to the tune of around Rs 40 lakh. For the last 10 months or so, the builder has been postponing the registration of flat in her name.
Hence, she filed her complaint with RERA and the builder has now completed the registration, following the directives of the RERA bench.
These are definitely good signs for Indian property buyers and the real-estate industry as a whole!
Although RERA is a central law, its implementation will depend on state governments, as real estate is a state subject.
Most of the states have now notified their own versions of RERA Act and have been implementing the enacted laws. Some of the states like Maharashtra and Karnataka have already launched their respective RERA portals for the benefit of all stake holders i.e., Real estate builders, Property Agents and Home buyers.
Below is the online procedure to file complaints against errant builders / promoters. I have provided the screenshots of two RERA portals – Maharashtra’s and Karnataka’s….
The authority has so far received more than 98 complaints through its online RERA portal.
Below is the online procedure to submit complaints to RERA in Karnataka ;
All this may look impressive and beneficial to real estate property buyers, but the main contentious issue for the builders has been ‘the inclusion of on-going (under-construction properties) projects under the RERA Act’.
The various associations of builders across the nation have been challenging the law, particularly sections that put old projects — started before the RERA law was passed and are yet to be completed, under the ambit of the regulator. They have approached the various state High-courts and also the Supreme court, awaiting for the judgement. (As per the builders, Section 3 of the RERA Act, which says ongoing projects must be registered, is applied retrospectively and therefore violates their constitutional safeguards.)
Let’s hope that a well balanced RERA Act is beneficial and ensures a level-playing field for all the stake holders of the real estate industry.
Continue reading : ‘Real Estate Regulations & Development Act (RERA) : Key points & Review‘
(Image courtesy of Stuart Miles at FreeDigitalPhotos.net) (Post published on : 08-September-2017)
This post was last modified on July 11, 2023 9:25 pm
Retirement planning in India is often misunderstood. Many people think any long-term savings or investment…
You’ve probably seen the same property quoted at different prices. One person says ₹60 lakh,…
Buying insurance is easy. Getting your claim settled—that’s where the real test begins. For any…
Gifting immovable property—like land, plots, or houses—is super common in India. Families often do it…
Most people believe that investing alone is enough to create wealth. But in reality, many…
When you invest your hard-earned money, there’s one question that often gets overlooked: “Will I…
This website uses cookies.
View Comments
I had purchased Flat no.403 & open parking in Building Tricity Pride, Sec-9, Ulwe, Navi Mumbai from Builders: Tricity Realtors RPLK, Bhumi Costarica, Sanpada, Navi Mumbai. The builder has allotted me parking on a slope just at entrance of building which is unusable to me as it will damage self & society members vehicle while entering/exiting from building gate.I have taken up the matter with builder since last 1 year on phone & e-mail but he is telling me to take back my 1 lac which i had paid for parking. I work in merchant navy & will be back in India by Feb 2018 last week. I have given Power of attorney to my wife for this Flat. Kindly advise what can be done by me without being physically present in India as Society formation is about to complete & later builder will wash off his hands saying that now he has no hold of property. Kindly advise at earliest.
Dear Mohmed,
I am not sure if RERA can help you in this regard.
You may kindly check with a local civil lawyer on how to resolve this issue.
Dear Sir,
I booked a flat in bangalore in July 2016 with a aggrement that it will get finished by March 2017. After that they will give penalty of RS.8 per square foot per month.But they delayed the project and now saying will go for registration in March 2018. And even not paying penalty. And by seeing working going I don't think even it will get finish by March 2018.
Also they are demanding now more money on completion of final floor and internal plastering finishes.
What should I do?
Dear Kumar..You may kindly submit your complaint through KA RERA portal.
Hi sir Gud daysir ,I booked flate through urbainia space Pvt Ltd for project of grid 1 and I gave cash amount around 18lakh and builder gave us 29 Lakh plus post date cheque but now builder not giving us flate in same project , now we requested builder give back our money n we file a case against him but still Nathing happen pls guide us
Note : can we deposite post date cheque which they gave us ,if we do n cheque get bounced what else we can do as it's our hard work saving pls guide us
Regards
Amarjeet
jobkbs.123@gmail.com
Dear Amarjeet.. Did you file complaint through RERA portal?
Riyaz Sohale says:
January 11, 2018 at 2:39 am
I had purchased a flat in 2010 with Phatak builders at Mysore Karnataka State, the project was approved by HDFC Ltd, as I was provided loan. Initial Sale Agreement was done and part by payment was done to the builder through the bank through various stage of construction and complete payment of Rs 33 Lakhs is done. I have paid full amount . As per the sale agreement , the builder was about to deliver the flat within 3 years, till now it has the flat has not been delivered to me. The Sale agreement has not been registered in my name.
recently he has sold my flat and registered to another person.
I have also approached state consumer forum and a case has been registered against him, also police complaint on cheating has been filed.
The project is under Rera investigation.
Can I file a complaint with Rera , so that I can get my hard earned money.
Please help me in this Regard.
Dear Riyaz,
Yes, suggest you to file a complaint in RERA as well from your side.
All the best and justice will be done in your favor!
Thank You very much Dear Sreekanth
Thank you Sreekanth for the information you have provided in the article, and advise to folks seeking relief through RERA. Do you have or know of a forum/blog where folks have gone through the RERA complaint process, whether they were satisfied with the outcome of the verdict, and if there has been a closure (builder followed through with the RERA order)? Is there somewhere folks can share/have shared their experiences?
I have recently filed a complaint with MahaRERA for compensation for a property that has been delayed possession by the builder for over 4 years in Pune. I am wondering what to expect from filing the complaint, and if the builder will even comply with the RERA verdict.
Thanks again for a very informative blog.
Dear Navin,
As this is a new facility/development, I have very limited information on the requested links.
If a builder does not comply with RERA authority verdict, one can move to a higher court for the judgement.
I m from naigaon east. I buy property in same area in 2015 .registration has been done. N entire amount i hand over to builder. Now possession is 2yrs late. N now i found that builder submited false commencement certificate ( c.c.) . Thru r.t.i. i came to know this blunder. Now i want my entire amount back with bank interest.... which way i can go ? What to do ?
People plz answer me.
Harsh
9049043280.
Dear Harsh.. Suggest you to consult a civil lawyer and check out the possibilities of taking legal action against the builder.
I had booked a flat of 795 sqft on 2nd floor in pre launch offer in 2015 with a reputed builder. Later d builder started selling flats without floor rise n Plc. and also introduced terrace flats. So I requested for an upgrade which d builder initially denied.. After reaching out to higher authorities I was alloted a flat of 845 sqft on 18th floor with terrace in 2016. The only difference between the 2flats was a 50sqft terrace. However since I had booked as per earlier plan he still took floor rise n Plc from me as per current market price for the increased area which I paid. In Oct 2017 we got a call mentioning Rera has not approved the terrace so I will only get flowerbed. When I asked for a refund of the additional amount I paid for terrace the builder said there will be no refund as the carpet area will be same (same as my previous flat on. 2nd floor). When reached out to their Crm team the AVP said you have signed agreement of carpet area n not saleable area. Now he says that there will be no flower bed as well. When I asked for a revised layout plan d builder is denying that saying it is against company policy to send over email n I can take it from Rera website. My problem is till date there is no official communication from them informing of the changes n everything is verbal where I get to know of new changes every time I speak to them. I am afraid this way there will be major changes till the time I get the flat. When asked for a refund as d flat is no longer meeting my requirements d builder says I will get my money without any interest while he is charging 24% for any delayed payments. It's been 2 years that I invested my money in this project. Can I register a complaint with Rera for a flat booked in pre launch before it was registered with them
Dear Sujata,
When is the planned construction completion date?
For which flat you have done formal agreement with them?
The completion date is Dec 2020. I have just been given allotment letter for the 18th floor flat. So far registered agreement is not done as the builder just started the construction. We recently received the first demand letter and that's when we came to know about these changes.
Dear Sujata .. If agreement is not done, it can be a tough task to file a complaint (also based on the given info).
You may kindly consult a civil lawyer.
After repeated emails (threatening the builder to file a complaint in RERA) and phone calls I finally managed to get the 20% amount I paid for the pre-launch flat in June 2015. As mentioned earlier the onset of construction delayed but the builder was still on track to provide possession by Dec 2020. The reason for me cancelling the booking was the drastic changes to the plan which were not communicated. Their team said its against their policy to share layout plans on email while they shared the same over an email when I posed as a different customer. This is because they did not want me to have a proof of plan changes. (I have recorded telephonic conversations where their staff has agreed on the changes and said this is not due to RERA coming in but their own architects changed the plan) Also on all of my email communications, I have asked for interest on the amount paid while requesting refund. Their team tried to give us other options that were still not matching our requirements and also at an extra cost. Finally while giving refund, they made us sign a document mentioning we are providing refund as mentioned on your email dated XXX asking refund without interest. Before signing, I did call up their AVP and asked the reason why they are making me sign on this clause as I have not mentioned with out interest. She said this is to avoid issues for them as customers take refund and later on file a case claiming interest. I did counter question her informing even otherwise I can file a complaint as my email does not mention without interest. Please let me know whether I can now file a RERA complaint claiming interest for all these years. While I donot have a agreement signed, I have several email communications, allocation letter and payment receipts. There are many lapses from the builder which are clearly called out on all of my email communications.
Dear Sujata ..Suggest you to kindly go ahead and file a complaint. You will get the refund with interest (as penalty) from the builder.
Thanks for the guidance. One last query...Is there any negative consequence on customer if RERA gives a decision in favour of the developer (such as penalties). Asking this question here as the developer's VP has indirectly hinted another buyer that many customers have gone to RERA in the past..as a customer you can afford to spend just few hours on your lawyers and we have lawyers dedicated to handle such issues.
Dear Sujata,
They be just scaring you (the buyers) or may be they dont want the customers to approach RERA.
If the issue is genuine, kindly file a compliant, justice will be prevailed.
Dear SIR,
i have booked a flat in a project ECO-VILLAGE 2, of super-tech builder in GREATER NOIDA in Dec. 2012. the builder promised me in writing that they deliver the project in JAN. 2015 AND TOOK THE 95% amount. Now after the lapse of nearly 3 years he has not delivered the project. when i went to the project site physically Isaw that he may not ne able to deliver my project in 1 years time from now. what should I DO, kindly suggest.
AMITOSH DUBEY
Dear Amitosh..You may lodge your complaint through RERA (UP) authority.
I have booked the flat in Sep 2014, that time builder showed us different floor plan and Committed delivery by end of 2016. Later they have changed the floor plan and reduced the few amenities what they offered us at the time of booking and they didn't inform us about all these changes.
I signed the sale agreement in march 2016 as Paranjape told us there is some issue with his partner to get signed off the Sale deed agreement after my 20% down payment ( in Dec 2014) and later in march 2016, Paranjape sorted out his issue with his Partner and we signed the sale deed in March 2016. When I went to sign the sale agreement in March 2016, I get to know that, these people change the floor plan and reduce the few amenities what they committed to us. I also dropped email to Chairman Mr. Shashank Paranjape and Shrikant Paranjape regarding this changes in amenities and floor plan.
I also clearly mentioned in my Email, I have old brochure of the Project - Earlier floor plan was different and each bedroom had its own bathroom. Later this plan is also changed, when I saw new brochure that time I got to know they change the floor plan. Still I was ok at that time. I thought Paranjape is having its own brand and may be because of some reason they change the plan. I didn't complain that time as well.
They never informed me about plan changes and amenities, when I asked them to show me any email copy or any communication from your side mentioning that you informed me about changes in Plan and in amenities. They are keep showing my email to me every time, and I am asking them to show any kind of communication from your side before 21 March 2016 which is saying that plan has changed and this is for your information.
Last month in November 2017 I again visited to my flat to see the progress, I realized Master bedroom is extremely small (9.4”x13.8”) as compare to what they showed on 2014 at the booking time (13”x10.2”)
I raised this concern to Vivek Somani- Sales Manager, Shuklendu Katdare- Zonal Manager and then they said why you don’t look for 3 BHK in project (That to with extra price) as you’re not happy with house dimension. Also I got to know that other people (those who booked 2 BHK) also complaining the same.
Today dated 7th dec 2017 I visited the site for physical measurement of my flat, I was totally shocked after seeing the measurement. There is absolutely no match of dimension what he showed in his 2016 brochure and 2017 RERA brochure. Around 100+ sqft is missing in physical calculation (Site visit calculation) and as per his brochure. (Both Brochure)
Actual Site dimension (after visiting the site is as below)
1. Carpet Area – 662 Sqft (As per brochure – 763 Sqft)
2. Balcony area- 103 sqft
3. Utility area – 51 sqft
4. Total Carpet area – 817 Sqft (Calculated after Physical site visit) – As per brochure- 910
As per Paranjape old brochure (as Square feet dimension brochure, His dimension is below (Below dimension is not matching with actual site dimension)
1. Carpet Area – 763.48 sqft
2. Balcony Area – 94.93 sqft
3. Utility area – 51.45 sqft
4. Total Carpet Area – 909.86 sqft (In Sale agreement Paranjape mentioned – 912 sqft, here also you can see 2.14 sqft difference)
Now as per New Paranjape brochure for RERA (as Square meter dimension brochure, His dimension is below (Below dimension is not matching with actual site dimension)
1. Carpet Area – 74.37 Sqmt (But at actual as per his floor plan 66.245 Sqmt)
2. Balcony area – 9.67 Sqmt (But at actual as per is floor plan 8.917 Sqmt)
3. Utility area – 4.84 Sqmt (But at actual as per his floor plan 4.756)
4. Total Carpet area – 88.88 Sqmt (956 Sqft) (But at actual as per his floor plan 79.911 Sqmt)
Here question is same plan with different dimension, how it is possible? – As per 2016 changed plan his total carpet area is - 909.86 sqft and as per RERA plan his carpet area is 956 sqft.
And actual site physical verification total carpet area dimension is 817 sqft only.
Every time this builder is changing the plan without informing to his customer. Now I told Paranjape to cancel this deal as you didn’t deliver what you promised us in 2014. So, Paranjape asking me to pay 5% cancellation charges (Why should I pay those charges as its purely his concern as he is not able to deliver to us what he showed) + Whatever tax I paid to government from 2014 till date (refused to refund those taxes.) + Whatever Payment done through loan account, he will pay that amount in 3 installments, whereas bank asking 1-time payment to close this loan.
I already logged the complaint in RERA. So, would like to know How much time will RERA take to send notice to Builder and once case is stand up what is the process. How I'll get to know that builder got the notice? What action has taken by RERA team on complaint? How RERA team will give me update on my case?
Is your case resolved. I too have a similar issue and wondering if filing a case with RERA will help.
Dear Kunal,
Thank you for sharing your real-life experience in a detailed way. Can understand your agony!
Both of you will get the notice (updates) from RERA authority. They will hear from both of you and go through the documentary evident that has been submitted to them and will take appropriate action.
If you the judgement is in your favor, they may ask refund of your money (if required) with penal interest. They may also levy penalty to builder for false promises.
I have noticed the parties getting response from RERA within 30 days.
Dear Sir,
I booked a flat in Bangalore in March 2015 and as per Sale Deed it was suppose to be completed in Feb 2016. I registered my flat in April 2017 and moved in on July 2017 with all temporary basic facilities(Water, Drainage & Electricity) as it was impossible for me to pay EMI's & sometime live in rented house. Now Building is under temporary power connection. Builder & Sales people have stopped responding to our calls, workers have vacated the as salaries where not paid. When we visited builders office new sales guy was available and got to know that builder has not paid property tax and also not payed for permanent electric connection as all the flats are not sold. Till date i have not got OC or Completion certificate from builder Can we file complaint in RERA asking compensation for delay and failed promises or do we need to file a civil case against the builder. PLEASE SUGGEST.
With Regards,
Ganesh R
Dear Ganesh,
I believe you can file a complaint and you should considering the scenario.
Form as a group with other Flat owners, file a complaint through RERA and also consult a Civil lawyer to file a civil suit against the builder.