It is crucial to make the right move with the correct knowledge and technique to avoid unnecessary delays in court matters, whether civil or criminal. Choosing the correct jurisdiction based on your case is paramount, whether it involves a Civil Court, Criminal Court, Consumer Court, RERA Authority, or any judicial or quasi-judicial authority.
The Real Estate (Regulation and Development) Act, 2016 (RERA) plays a vital role in protecting consumer rights and interests. It provides remedies for delayed possession, structural defects, misleading advertisements, false statements, and more. The RERA Act is essentially an extension of the Consumer Protection Act.
Concurrent Jurisdiction/Remedy
It is important to understand that aggrieved parties cannot seek concurrent remedies for breaches of terms and conditions of contracts or agreements to sell between purchasers and developers or builders. In layman’s terms, concurrent means seeking relief at the same time from two different authorities or courts for the same grievance, such as filing a complaint before the RERA Authority and the Consumer Court simultaneously. The National Consumer Disputes Redressal Commission (NCDRC) has ruled that consumers cannot approach both the consumer court and RERA on the same complaint.
The NCDRC recently dismissed a complaint against a building developer, finding that the complainant had already approached the RERA authority. For an accurate case reference regarding the National Consumer Disputes Redressal Commission (NCDRC) ruling that the same complaint cannot be filed with both RERA and the consumer court, you can refer to the case “A. Infrastructure Limited (now Kanoria Energy & Infrastructure Limited) v. Macrotech Developers Ltd., Consumer Case No. 182 of 2022”, decided on September 20, 2023. The NCDRC dismissed the complaint on the grounds of maintainability, applying the doctrine of “estoppel by election” which prevents the same grievance from being pursued in multiple forums. The NCDRC ruled that once a complainant has chosen to seek remedy under one legal forum, they cannot subsequently approach another forum for the same issue, aiming to avoid contradictory judgments and multiplicity of proceedings.
RERA vs. Consumer Court
After the establishment of the RERA Act, 2016, aggrieved parties can approach the RERA Authority or move to the Consumer Court under the Consumer Protection Act, 1986 (as amended up to date). However, it is essential to know that the RERA Act has no set limitation for filing a complaint once the cause of action has arisen. On the other hand, the Consumer Protection Act sets a limitation of 2 years for filing complaints after the cause of action arises to seek relief under the Consumer Protection Act. Aggrieved real estate buyers can file a case in RERA, consumer courts, etc. However, RERA is a specialized forum with expertise in real estate laws and rules. RERA has resolved more than 1 lakh cases until November 2023. The most effective forum for the buyer to approach for resolving issues highly depends on the case’s facts, limitations, and the remedy the aggrieved party seeks from the respective forum.
Bar of Jurisdiction
As per Section 79 of the RERA Act, 2016, Civil Courts are not empowered to entertain or hear any suit or proceedings on any matter which the Authority, adjudicating officer, or an Appellate Tribunal is empowered to address under the RERA Act, 2016. Therefore, it is important to move to the correct forum and take the right steps, understanding the facts of the grievances and legal procedures and jurisdiction before initiating any legal proceeding to avoid unnecessary delays and expenses.
To conclude, understanding the distinctions between RERA and the Consumer Protection Act is crucial for real estate buyers seeking justice. Each forum has its specific expertise, limitations, and processes. Choosing the appropriate legal avenue based on the case’s specifics can lead to more efficient and effective resolution of disputes. Proper knowledge of the law and correct jurisdictional choices are essential in safeguarding one’s rights and interests in real estate matters.
Advocate Tejashree Gaikwad-Rane
Contact number: 9881008420
[email protected]
