Q. Homebuyers often face grievances against builders such as delays in possession, denial of refunds, lack of promised amenities, or compensation issues. In such situations, they are confused about whether to approach Consumer Courts or MahaRERA. Which platform is more effective and beneficial? What are the advantages and limitations of both?? —Rajendra Rane, Borivali
A. Aggrieved homebuyers can approach either MahaRERA under the RERA Act or Consumer Commissions under the Consumer Protection Act, 2019 (CPA) for grievance redressal. Under RERA, homebuyers are termed “allottees,” while under CPA, they are “consumers.” However, CPA excludes those who purchase property for commercial purposes, meaning such buyers cannot approach Consumer Commissions.
RERA does not impose this restriction, allowing even commercial buyers to file complaints with MahaRERA. Fees: Consumer Commission fees depend on the “consideration paid” and range from ₹100 to ₹7,500. MahaRERA charges a flat fee of ₹5,000 plus GST, regardless of the property value. Limitation: Under CPA, complaints must be filed within two years from the date the cause of action arises, though delays may be condoned with valid reasons. RERA does not prescribe any limitation period, providing greater flexibility. Complaint admission and disposal: CPA provides for “deemed admission” if a complaint is not admitted or rejected within 21 days.
RERA has no such provision. While RERA aims to dispose of matters within 60 days and Consumer Commissions within 90-150 days, these timelines are not strictly followed, leading to delays on both platforms. MahaRERA functions as a “one-stop” forum, whereas Consumer Commissions follow a three-tier system – district, state, and national – based on the value of the claim (up to ₹50 lakh, ₹50 lakh-₹2 crore, and above ₹2 crore, respectively). This structure can make the CPA route more complex. Appeals: Under CPA, a builder filing an appeal must deposit 50% of the ordered refund amount. Under RERA, the builder must deposit 100% of the amount.
This makes enforcement of RERA orders faster and more effective, as the amount is already secured, unlike the often cumbersome execution process under CPA. RERA clearly defines the interest rate payable on refunds – MCLR + 2% per annum in Maharashtra – and mandates that it be calculated from the dates payments were made by the buyer. CPA does not prescribe a fixed rate, leaving it to the discretion of the commission, nor does it mandate a specific start date for interest calculation. Compensation: Section 72 of RERA outlines specific factors that the adjudicating officer must consider while awarding compensation.
CPA does not provide such defined criteria, making compensation more discretionary. Additionally, MahaRERA is a specialised regulatory authority with access to detailed project data, enabling more informed decision-making. Consumer commissions lack this project-specific regulatory framework. MahaRERA is generally a more efficient and favourable forum for homebuyers in Maharashtra due to its structured provisions, guidelines, and enforcement mechanisms. In certain cases, approaching a consumer commission may still be advisable.
(Advocate Shirish V Deshpande is chairman, Mumbai Grahak Panchayat. Queries can be sent to him on email: shirish50@yahoo.com)
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