RERA is a landmark law

Introduction

The real estate sector in India, once marred by delays, lack of transparency, and uneven dealings, witnessed a major turning point with the enactment of the Real Estate (Regulation and Development) Act, 2016 — popularly known as RERA. Designed to bring accountability, transparency, and efficiency to the real estate market, RERA has reshaped the landscape for homebuyers, builders, and agents alike.

For decades, homebuyers were at the mercy of developers, often left waiting for years without possession or recourse. RERA stepped in as a much-needed reform, aiming to protect consumer interests, regulate the real estate industry, and ensure timely delivery of projects.

In this article, we will explore the key features of RERA, its impact on stakeholders, important rights of homebuyers, and the challenges and criticisms that still surround its implementation. Whether you're a buyer, builder, or simply curious about real estate law in India, understanding RERA is crucial in today’s evolving property market.

What is RERA? Understanding the Real Estate Regulatory Authority

RERA, short for the Real Estate Regulatory Authority, is a law established under the Real Estate (Regulation and Development) Act, 2016. The primary objective of this Act is to bring more transparency, accountability, and regulation to the real estate sector. It aims to protect the rights of both homebuyers and developers, ensuring fair practices and timely delivery of projects.

Mandatory Registration under Section 3

As per Section 3 of the Act, it is mandatory for any real estate project to be registered under RERA if it meets either of the following criteria:

• The land area exceeds 500 square meters, or
• The project involves more than 8 apartments/flats.

This means that builders or promoters cannot market, advertise, or sell any such project without first registering it with the respective State RERA authority.

Applicability on Ongoing Projects

One crucial aspect of the RERA Act is its applicability to ongoing projects that did not receive a Completion Certificate (CC) before the Act came into force in 2016.

Example:

Suppose you booked a flat in a real estate project in 2010, and the possession was promised by 2013. However, due to delays, the project was still incomplete by 2016 and had not received a Completion Certificate. In such a case, the project must be registered under RERA even though it was launched before the Act was enacted.

Key Takeaway

• Even if a project is old, if it did not receive a Completion Certificate before 2016, it falls under the scope of RERA.
• This provision ensures that buyers of delayed or incomplete projects also benefit from the protections and remedies available under the RERA Act.

RERA has played a transformative role in reshaping India's real estate landscape, instilling greater confidence among homebuyers and discipline among developers.

What can you do legally if the builder fails to deliver the flat on time?

If a builder fails to hand over possession of a flat within the promised timeframe, buyers have multiple legal avenues available to seek justice and compensation. These forums include:

Legal forums available for action

1. RERA (Real Estate Regulatory Authority)
2. Consumer Commission (Consumer Disputes Redressal Commission)
3. Criminal Complaint (under IPC for cheating, fraud, etc.)
4. NCLT (National Company Law Tribunal) – in case of builder’s insolvency

Among these, RERA and the Consumer Commission are considered the most effective and time-efficient remedies for homebuyers dealing with issues like delay in possession, refund, or compensation.

Important Note on NCLT

The NCLT only handles cases related to the insolvency or bankruptcy of the builder under the Insolvency and Bankruptcy Code (IBC).
It does not deal with matters concerning delay in possession, refund claims, or compensation for project delays. So, unless the builder is declared insolvent, NCLT is not the right forum for such disputes.

RERA: The most effective remedy for delay in possession

For cases involving:

• Delay in possession
• Refund of paid amount
• Compensation for project delays

RERA is the most relevant and efficient legal remedy. Under the RERA Act, buyers can file a complaint directly against the developer for any violation of obligations or promises related to the property.

Key Supreme Court Judgment

In the case of Experion Developers Pvt. Ltd. vs. Sushma Ashok Shiroor, the Hon’ble Supreme Court of India ruled that:

"If multiple legal forums are available under different laws, the complainant has the right to choose the forum where they wish to file their complaint."

This judgment confirms that a homebuyer can choose the most suitable platform — whether RERA or the Consumer Commission — based on the nature of their grievance or choice.

What can a homebuyer claim if the builder delays possession?

When a builder delays handing over possession of a property, the buyer has legal rights under the Real Estate (Regulation and Development) Act, 2016 (RERA) to seek various forms of relief. The most common remedies include:

1. Delay Possession Charges (DPC)

If the allottee (buyer) chooses to stay in the project and does not opt for a refund, they are entitled to monthly interest for every month of delay until the possession is handed over.

DPC is the first and primary relief granted in most delay cases.

2. Refund, Interest, and Compensation

If the builder fails to complete the project on time, the buyer has the right to withdraw from the project. In such cases, the buyer is entitled to:

• Full refund of the amount paid
• Interest on the paid amount (as per RERA rules)
• Additional compensation for the inconvenience or losses suffered

3. Compensation – Separate from DPC

It is important to note that if the promoter fails to fulfil any obligations under:

• The RERA Act,
• RERA Rules, or
• The terms and conditions mentioned in the Builder-Buyer Agreement (BBA),

Then the buyer is also entitled to compensation, which is separate from Delay Possession Charges (DPC).

This compensation can be claimed for mental harassment, legal expenses, rental costs during delay, or any other legitimate losses.

4. Important Note on Possession Timeline

As per Section 19(10) of the RERA Act:

The allottee must take physical possession of the apartment, plot, or building within two months from the date the Occupancy Certificate (OC) is issued.

Failure to do so may impact the buyer’s claim or legal standing in certain situations.

Summary: What Can You Claim?

• ✅ Delay Possession Charges (monthly interest for delay)
• ✅ Full Refund + Interest (if opting out of the project)
• ✅ Compensation (for losses beyond DPC)

RERA ensures that homebuyers are not left helpless in the face of construction delays. Whether you want to stay in the project or exit, the law is designed to protect your rights and provide fair remedies.

Essential documents for Homebuyers & how to file a complaint in RERA

When dealing with real estate transactions, especially under the RERA Act, certain documents play a crucial role in protecting your rights and establishing your case in the event of a dispute or delay.

Part 1: Key Documents Every Homebuyer Must Keep Carefully

The most important document in any real estate transaction is the Agreement to Sale, also commonly known as:

• Builder Buyer Agreement
• Plot Buyer Agreement
• Flat Buyer Agreement

Regardless of the name, this document serves as the legal foundation of your relationship with the builder or developer.

🔍 What Does the Agreement to Sale Tell You?

• The assured date of possession – This is vital if there’s a delay.
• The total cost and payment schedule.
• The charges applicable to the buyer (maintenance, parking, club membership, etc.).
• The amenities and facilities promised along with the flat or property.
• Penalties in case of delays or default by either party.

Tip: Always read this agreement thoroughly before signing. It becomes the main basis of any legal claim under RERA.

Part 2: how to file a complaint in RERA– Step-by-Step Guide

If you’re facing issues like delayed possession, non-refund, or violation of terms, RERA offers a quick and efficient remedy. But to file a complaint, you must be ready with the right set of documents.

✅ Documents Required to File a Complaint in RERA:

1. Application/Booking Form
• Initial form submitted to book the property.
2. Allotment Letter
• Contains the allottee details, unit details, and provisional possession timelines.
3. Agreement for Sale / Builder Buyer Agreement
• Most important document outlining rights, timelines, and obligations.
4. Payment Receipts
• Proof of all payments made to the promoter/developer.
5. Financial Ledger from Broker/Builder
• Shows a detailed account of all transactions and dues.
6. Bank Statement (Optional but useful)
• Can support your claim if any official payment receipts are missing.
7. Offer Letter for Possession (if any)

Helps establish the timeline and readiness of the property.

How to file case with RERA?

Filing with UPRERA:

Step 1:  Go to the link https://www.up-rera.in/index and under the “LOGIN” option of the drop-down menu click on E-Court Login/Sign-up as shown in the picture.

Step 2:  Click on the register tab on the right hand of the screen and fill up all the details your details as shown below:

Step 3:  Once the profile has been created and the login has been done following window will appear on the screen , wherein you have to click on the “COMPLAINT REQUEST” then “NEW COMPLAINT FORM (M)” as shown below:

Step 4: Once you open new complaint Form request following dialog will appear regarding conciliation option, you can Opt-in or Opt-out for the same.

Step 5: Once you clear the dialog box you will land on the next page requiring Project details and payment, you have to fill all the details available to you regarding the project and proceed further by clicking on the “SAVE AND NEXT” Button.

Step 6: In this tab you will have to fill in all the details related to the Subject property and upload all the documents as required by the authority.

Step 7: Finally when you are done with all the facts and document uploading and all the discrepancies and queries raised by the authority are cleared, your complaint will get registered and details of hearing date and all the related information shall be available in the Complaint status tab.

Filing with HARYANA RERA:

Step 1: Go to the Link https://haryanarera.gov.in/login/loginview/2 and select the tribunal Gurugram/Panchkula/ Appellate Tribunal.

Step 2: In the menu tab click on the “REGISTRATION OF COMPLAINT WITH HRERA”

Step 3: You will have to fill the particulars of the complainant who is making the complaint, subsequently after entering the phone number and receiving the OTP you will be able to proceed further.

Step 4: further you will have to fill all details of the project or property, the respondent and the details regarding you representation (whether self-representation or representation through advocates).

Step 5: After all details are filled you may get the print out of Performa B, which has to be attached with the original set of your pleadings and the same has to be physically filed with the HRERA.

FAQs on RERA and Supreme Court Judgments every Homebuyer must know

1. From when is the buyer entitled to interest – from the date of last payment or from the date of deposit?

The Supreme Court in the case of Experion Developers Pvt. Ltd. vs. Sushma Ashok Shiroor made it clear that the buyer is entitled to interest from the date of deposit, not just from the date of the last payment. This ensures that builders cannot delay possession and escape paying for the time during which the buyer’s money was blocked.

2. Can a homebuyer claim compensation even after taking possession?

Yes. The Supreme Court in the Experion Developers case clarified that a homebuyer can claim compensation even after receiving possession of the property.
This principle applies under both RERA and the Consumer Commissions.
So, remember: Delay Possession Charges and Compensation are your rights!

3. Can the builder impose one-sided terms and conditions through the BBA or ATS?

Absolutely not. In the Experion Developers case, the Supreme Court stated that a builder cannot enforce one-sided, arbitrary clauses in the Builder Buyer Agreement (BBA) or Agreement to Sell (ATS) to the detriment of the buyer. Such unfair terms are not legally binding if the buyer had no say in negotiating them.

 

4. If I’ve signed the BBA, NOC, Settlement Deed, or completed the registry, can I still file a complaint under RERA?

Yes, you still can. The Supreme Court in Pioneer Urban Land and Infrastructure Ltd. vs. Govindan Raghavan held that if a buyer was forced to accept the builder’s terms without any real choice, then such agreements cannot be considered final or binding.
This gives relief to buyers who signed documents under pressure or as a mere formality.

These landmark rulings have significantly strengthened the position of homebuyers under RERA and Consumer Protection Laws. If you’re a homebuyer facing delay or injustice—know your rights, and don’t hesitate to assert them.

RERA Authority's Verdict in Ravi Dhaka vs Haryana Sahkari Vikas (2023): Can a Signed Indemnity Paper Waive Your Legal Rights?

One of the most significant concerns faced by homebuyers is whether signing an Indemnity Paper or NOC at the time of possession can legally prevent them from making any future claims against the builder. This very issue was brought before the Haryana Real Estate Regulatory Authority (HRERA) in the 2023 case of Ravi Dhaka vs Haryana Sahkari Vikas.

What Was the Core Issue in the Case?

The key legal question was:

If a homebuyer signs a document (such as an Indemnity Paper) stating that they have taken possession and will not make any future claims, can that document be used to deny them their legal rights later?

What did HRERA Decide?

HRERA examined this issue in depth and referred to multiple landmark judgments, including:

• Capital Greens Case (Supreme Court Case)
• Pioneer Urban Land vs. Govindan Raghavan (Supreme Court Case)
• Neelkamal Realtors vs. Union of India (Bombay High Court, 2017)
• IREO Grace Case (Supreme Court Case)

Based on these precedents, the Authority held that:

"No rational person would voluntarily give up their statutory rights without any pressure, coercion, or compensation."

This means that if a builder forces or pressures a buyer into signing an NOC or indemnity paper—by saying, for example, that possession or registry will be denied without it—then such a document does not legally waive the buyer's right to claim Delay Possession Charges (DPC) or compensation.

Key Takeaways from the Judgment:

• Signing an indemnity or NOC under pressure does not bar you from future legal claims.
• Statutory rights under RERA cannot be waived through coercive or one-sided documents.
• Builders cannot use such documents to escape liability for delayed possession or compensation.

Why this case matters for Homebuyers

This ruling is a powerful affirmation of buyer rights under RERA. It reinforces that homebuyers cannot be tricked or coerced into surrendering their claims, and that justice will consider the context in which such documents were signed.

1. Do You Need an advocate to File a Complaint in RERA?

No, an advocate is not mandatory. Filing a complaint under RERA is designed to be simple and user-friendly. However, considering the technicalities involved and possible errors in legal interpretation, consulting a legal expert is always advisable to strengthen your case.

2. Can the builder offer possession anytime and stop interest payments from that date?

If a builder offers possession without obtaining a Completion Certificate (CC) or Occupancy Certificate (OC), such possession is not legally valid. The builder cannot avoid paying Delay Possession Charges (DPC) by offering premature or incomplete possession.

3. Where should you file your RERA case?

You must file your complaint before the RERA authority where the project is registered.

However, there's often confusion between filing before the RERA Authority or the Adjudicating Officer (AO).

The Supreme Court in Newtech Promoters vs. State of UP (2021) clarified:

• For refund, delay possession charges (interest), or builder-initiated cancellation: File with the RERA Authority.
• For compensation: File with the Adjudicating Officer (AO).

Important Note: The Authority will first determine if the builder is at fault. Only after establishing default, you can proceed to the AO for compensation.

4. What if the builder doesn’t pay even after RERA orders DPC or refund?

If the builder fails to comply with RERA's order, you can file an Execution Petition in the same RERA Authority to enforce the judgment. This is your legal route to compel the builder to follow through.

5. Is fighting a case in RERA a lengthy legal battle?

One of the highlights of RERA is it fast-track process. Cases are usually resolved within one year, though the exact timeline may vary case-to-case. Many RERA authorities even mention the number of hearings in their orders, promoting transparency and efficiency.

6. What is the interest rate for delay possession charges (DPC) and compensation formula?

According to State RERA Rules, the rate is as follows:

Haryana RERA: Interest Rate: SBI's highest Marginal Cost of Lending Rate (MCLR) + 2%

Delhi RERA: Interest Rate: SBI's highest Marginal Cost of Funds based Lending Rate + 2%

This formula ensures that buyers are compensated fairly for the delay in possession.

7. What are the timelines for refund as per RERA?

• UP RERA: Refund must be made within 45 days from the date of the order.
• Haryana RERA (HRERA): Refund must be made within 90 days from the date of the order.

Note: These are statutory timelines, but in case of delay, you can file an Execution Petition.

Final Word:

RERA is a game-changer for real estate in India. While it empowers buyers to stand up against unfair practices, seeking expert legal guidance is always advisable for effectively navigating the system and asserting your rights.

Conclusion

The Real Estate (Regulation and Development) Act, 2016, has significantly transformed the way real estate disputes are addressed in India. With clearer guidelines, faster resolution timelines, and stronger protection for homebuyers, RERA empowers individuals to seek justice without being overwhelmed by lengthy legal battles or arbitrary builder practices.

However, while the process is simplified, the stakes are often high—be it delay in possession, refund issues, or compensation claims. That's why understanding your rights and the proper procedure is crucial. Whether you're filing a complaint, responding to a possession offer, or calculating your interest dues, being informed is your best defense.

And remember: RERA is for the people—you don’t need to be a legal expert to use it, but legal support can ensure your rights are fully protected and enforced.

Stay aware. Stay empowered. And don’t hesitate to take the legal route when your dream home is at stake.

Disclaimer

This article is for informational purposes only and does not constitute legal advice. Readers are advised to consult a qualified legal professional for guidance specific to their case or jurisdiction. The information is based on current laws and judgments as of the time of writing and may be subject to change.

CREDITS:

Team Research-(Legal Commentary)