In recent years, Haryana has witnessed rapid urbanization and real estate development, with numerous housing projects and commercial complexes being launched by builders and developers in urban and suburban areas. However, this rapid development has led to an increase in disputes between the builders and the buyers.
For most people, purchasing real estate is the most significant financial transaction of their lives. This process is costly and intricate, fraught with potential issues such as poor construction, project delays, hidden charges, etc. Amongst these, the most common problem faced by the buyers and investors is the delay in handing over the possession by the builder. This delay not only causes financial hardships to the buyers but also raises legal questions regarding remedies available to them. Therefore, buyers must always be aware of the legal remedies available to them when encountering any such adversities at the hands of builders.
Legal remedies for resolving builder-buyer disputes in Haryana:
1. Filing a Complaint with the Real Estate Regulatory Authority (RERA)
The Real Estate (Regulation and Development) Act, of 2016, established RERA to regulate the real estate sector and protect the interests of buyers. Haryana has its own RERA authority, known as HRERA. The aggrieved can file a complaint with HRERA for issues such as project delays, non-compliance with approved plans, and unfair practices by builders. The biggest advantage of filing a case before RERA is the speedy redressal of the grievance as the period prescribed under Sec 29 of RERA 2016 for disposing of a RERA complaint is 60 days from the date of filing it.
For Refund of the Amount Paid
RERA as a sub-judicial body under section 18 of the RERA act, entitles the aggrieved buyers to claim the refund of the amount which has been paid for the purchase of a property, along with interest by filing a complaint before HRERA authority in the prescribed form i.e. Form ‘CRA’. This right granted to the allottee is comprehensive and unrestricted, and it comes “without affecting any other available remedy”.
For Compensation Due to Mental Agony and Harassment
In addition to seeking a refund, buyers can claim compensation for the mental agony, harassment, and inconvenience caused due to the builder’s delay in delivering the possession by filing a complaint before the adjudicating officer in the prescribed form i.e. Form ‘COA’. Courts often take into account the emotional distress and financial hardships suffered by the buyers and may award compensation accordingly.
Provision for Appeal
In case things go sideways, RERA offers the option to appeal decisions made by the Real Estate Regulation Authority to the Appellate Authority, followed by the High Court, and ultimately the Supreme Court, all within a specified timeframe. With proceedings required to conclude within set deadlines, this adjudication process is significantly faster compared to other judicial and quasi-judicial bodies.
2. Complaint before Consumer Forums
Buyers can also seek redressal through the Consumer Protection Act, 2019, by filing a complaint with the District Consumer Disputes Redressal Commission, State Consumer Disputes Redressal Commission, or the National Consumer Disputes Redressal Commission, depending on the value of the claim.
For jurisdiction, it is to be noted that where the amount of the commodities, services, or products paid as consideration to the seller does not exceed Rs. Fifty Lakh Rupees the district commissions shall have the authority to hear complaints; where the value of commodities, services, or products paid as consideration to the seller exceeds Fifty Lakh rupees but does not exceed two crore rupees, the state commission shall have the authority to hear the complaint; where the value of commodities, services, or products paid as consideration to the seller exceeds exceed two crore rupees, the national commission shall have the authority to hear the complaint.
Under the act, the complaint is disposed of within a period of 3 months from the date of the receipt of the notice from the opposite parties. The act empowers the forums to grant compensation for loss incurred and punitive damages in appropriate cases.
3. Civil Court
In cases where the dispute involves significant financial claims or complex issues, buyers can file a suit in the civil court. This is usually a more time-consuming and expensive process compared to RERA and consumer forums but necessary for certain types of disputes.
4. Arbitration
Arbitration is an alternative dispute resolution mechanism which is less time-consuming than civil courts. If the sale agreement/ builder buyer agreement includes an arbitration clause, the buyer can opt for arbitration to resolve the dispute. As per the language of the Arbitration clause provided in the sale agreement, the place, seat, and appointment of the arbitrator are decided.
Please note, the arbitrator’s final decision is binding on both the parties. However, if either party is not satisfied with the Arbitral award, they always have the option to file an appeal and challenge the awards before the appellate judicial body.
5. Before National Company Law Tribunal
For disputes involving the insolvency or bankruptcy of the builder, buyers can approach the NCLT under the Insolvency and Bankruptcy Code, 2016. This is particularly relevant if the builder is unable to complete the project due to financial distress. The amended Insolvency and Bankruptcy Code (IBC) now recognizes homebuyers as financial creditors. This significant change allows buyers to initiate the Corporate Insolvency Resolution Process (CIRP) against a builder company under Section 7 of the IBC.
The IBC process is a time-bound process ensuring a swift resolution of disputes. This efficiency adds a golden shine to the IBC, making it an attractive option for homebuyers seeking resolution.
Conclusion
Buyers in Haryana have multiple legal avenues to resolve disputes with builders. Depending on the nature and complexity of the issue, one can choose to file a complaint with HRERA, approach the consumer forum, file a suit in civil court, opt for arbitration, or seek recourse through NCLT. Understanding these legal remedies in depth will help to protect the investment of a person, ensuring that the person receives the property as promised.
