Homeowners Can Now Approach Consumer Court Against Builders Over Delay In Possession: Supreme Court

In a big relief for all homeowners across India, Supreme Court has now allowed them to approach consumer court to file complaints against builders.

Earlier, the homeowners were allowed to proceed with complaints only under the gambit of RERA Act.

But now, in addition to the laws under RERA, homeowners can also approach Consumer Court, and this means that the builder is now under the scrutiny of two legal entities.

Good news for homeowners, but bad news for builders and agents in real estate.

Supreme Court: Homeowners Free To Approach Consumer Court

In case of delay in possession of a new house, or any other issue related with the homes, the home owners can now approach consumer court, and file case against the builders.

This verdict was given by Justices UU Lalit and Vineet Saran, as they said that RERA Act doesnt stop homeowners from approaching consumer court.

As per the ruling, “Section 79 of the RERA Act does not in any way bar the Commission or Forum under the provisions of the Consumer Protection Act to entertain any complaint.”

What Does This Mean For Homeowners?

Earlier, when there used to be any delay in home possession for any newly bought home, the builders used to give excuse that no consumer forum case can be initiated against them, since RERA laws are already handling this issue.

This prevented the legal authorities to take action against builders other than RERA provisions.

But this changes now.

In case of any delay or any other issue related to new homes, any homebuyer can now approach consumer court as well, besides intiating action under RERA laws.

The Bench said, “But for the present purposes, we must go by the purport of Section 18 of the RERA Act. Since it gives a right “without prejudice to any other remedy available’, in effect, such other remedy is acknowledged and saved subject always to the applicability of Section 79…,”

This judgement was provided in the case against real estate developer M/S Imperia Structures Ltd in Gurgaon. The buyers have alleged that even after 4 years, the developers were not able to start the project.

M/S Imperia Structures Ltd argued that since the project was registered under RERA, the homebuyers cannot approach consumer court.

But now, they can!

We will keep you updated, as more details come in,