The Builders' Association of India (BAI) on the Supreme Court's recent judgement allowing homebuyer for compensation uphelding the consumer court's order stated that Real Estate Regulatory Authority (RERA) is formed only to resolve real estate related matters. Anand Gupta, Chairperson of housing and RERA committee of BAI said, "RERA has been doing a great job. The RERA act was approved by the Parliament of India in 2016 and from 2017 it was implemented. After 70 years, such authority was formed where builders and homebuyers can seek justice." RERA was established to expeditiously hear the real estate matters unlike other civil courts that listen to several other matters, he asserted.
Meanwhile, he also stated, "Of course, homebuyers will have an option to approach the various courts of law and with this judgment, now it is clear that consumer court can also pronounce on real estate projects where the possession has been delayed or homebuyer seeking a refund. Though the platform was open earlier too but this judgement now specifically cites that homebuyers can reach consumer forums with their complaints.
Instead of doing so, the SC in its judgement could have directed the parties to approach RERA and if not satisfied then further to appellate tribunal, HC among others, Gupta explained.
The matter is about a Housing Scheme "The ESFERA" in, Gurgaon, launched by the builder (Appellant) sometime in 2011, and all the original complainants -- Anil Patni and others booked their respective apartments by paying the booking amounts and thereafter each of them executed Builder Buyer Agreement.
However, even after four years, there were no signs of the project getting completed. In the circumstances, the homebuyer approached the consumer commission that ordered the builder to pay Rs 50,000 as compensation. However, the builder approached SC wherein, it upheld the order to be paid by the appellant in respect of each of the consumer cases, over and above the amounts directed to be made over to the complainants and shall form part of the amount payable by the appellant to the complainants.