Real Estate Regulatory Authority

Intending to regulate the real estate industry, the government enacted a state-level regulatory
authority called the Real Estate Regulatory Authority (RERA) through The Real Estate
(Regulatory & Development) Act, 2016 (“the Act”). Statistics show that RERA has played a
vital role in the efficient incorporation and completion of registered real estate projects. 

The dispute resolution of RERA is a two-tier process. The aggrieved party will approach the
state RERA Authority or Adjudicating Officer depending upon the nature of the violation of
RERA provision.1 The aggrieved person if vexed by the order can approach the Appellate
Tribunal within 60 days and can be entertained even post this specified period if it satisfies the
Tribunal with sufficient cause for such delay. The tribunal has a maximum of 60 days to dispose
of the appeal and on its failure, it has to record the reason for its delay 2. The order of the tribunal
can be appealed to the High Court of respective states.

Till July 2019, there were a total of 43,927 registered projects 3 in the country, while various
states are still either in their nascent or at a struggling stage in implementing RERA rules.
However, quoting the example of MahaRERA, Maharashtra has done an applaudable job in
resolving disputes through RERA followed by states like Uttar Pradesh and Delhi. As per the
MahaRERA report, it has received 11,033 complaints/cases out of which 7,865 (72%) have been
disposed of and the remaining 3168 (28%) are still in the hearing process to date.4

The problem lies with the execution of RERA orders. State authorities need to be more vigilant
in the proper execution of the orders. The aim of the establishment of the institution is frustrated
if no one honors its decisions. The authority issuing orders should be made responsible for the
execution of decrees in the same manner as the decree/order of the civil court. Proper
implementation of Section 63 is also important, laying down penalties for non-compliance with
RERA orders within a stipulated time.

Conclusion

1
The Real Estate (Regulation & Development) Act 2016 § 31.
2
The Real Estate (Regulation & Development) Act 2016 § 44.
3
Implementation Progress Report, Real Estate (Regulation & Development) Act 2016 (May 05,
2020), https://credai.org/assets/upload/rera/resources/real-estate-regulation–development-act-2016-rera-
implementation-progress-report—24-08-2019.pdf.
4
 MahaRERA Statistics, Maharashtra Real Estate Regulatory Authority (May 05, 2020).
Justice delayed is justice denied is an old but prevalent saying in the contemporary scenario. The
world is set to bear the unpredictable consequence of the COVID-19 pandemic post-lock-down.
Undoubtedly, the real estate industry too will not remain unaffected. As a result, dispute
resolution mechanisms helping in avoiding cumbersome litigation processes should always be
given preference. Proper implementation and execution of legislation rules are desirable for
keeping a check on the builder/promoter’s activities. Legislations and bodies like RERA and
conciliation fora, respectively, are giving optimum results with little compromise and settlement
between buyer and developer bringing expedite redressal of grievances, security, transparency,
and timely possession of the project. Such mechanisms should be promoted.
Factually, the Praxis of Arbitration can be a very effective and a rational method of resolving
disputes, especially between the estranged parties withholding equal bargaining power, such as
businesses.5 India has also considered the overall potential and outreach of ADR mechanism in
solving the disputes long ago and thus had inculcated the Arbitration and other relevant methods
way back. The laws on the same have developed a lot after inculcation in the legal regime of the
country. In this day and age, what meets the eye is the fact that the Arbitration clauses have made
a way into the consumer contracts also, i.e. the contracts which are between a consumer and a
business entity for the sale or lease of goods and services or other relevant things.6
Lastly, a consumer of ordinary prudence and frugality who is not well versed with the legalese
may even have problem in understanding the language and meaning of the arbitration clause, let
alone understand what it means and implication it carries in clear and simple terms.7

Importance Of Alternative Dispute Resolution As An Alternative To Legal Indictments

In the general ethos of legislations and legal conundrums, members of the legal fraternity have
long signaled alternative dispute resolution (“ADR”) as a method superior and much more
practical than to the dated concept of litigation for resolving contractual disputes. Advocates
aptly argue that Arbitration is a much more expedient and overall a pragmatic process than
litigation. Arbitration has simpler procedural and evidentiary rules than litigation, and arguably
provides conflicting parties with a less hostile method of resolving their differences and to attain
mutual disentanglement of their said problems.8

5
Frederick L. Miller, Arbitration Clauses in Consumer Contracts; Building Barriers to Consumer Protection, 78 Mich.
B. J. 302, 302 (1999)
6
Id.
7
Joseph T. Mclaughlin, Arbitrability: Current Trends in the United States, 59 Alb. L. Rev. 905, 922 (1996)
8
Gilmer v. Interstate/Johnson Lane Corp., 500 U.S. 20, 31 (1991)
Introduction

Aims and Objectives

Research Methodology

Research Questions

Growth of the real estate sector

Kinds of disputes arising in the real estate sector

1. Disputes relating to Title of Immovable Property  

2. Disputes related to delay in possession of flats by builders
3. Disputes relating to timely payments or non-payment of rent to members of housing societies
by builders. 
4. Disputes relating to inherited property
5. Disputes between Buyers and Builders or Estate Agents- For the fraud played on the buyers.

Delay in real estate projects lead to various disputes

Litigation- a cumbersome trouble

The jurisprudence of arbitrability over consumer and real estate disputes

Conciliation forum - Need of the hour

RERA And Arbitration

Significance Of ADR In Real Estate Sector

Arbitrability Of Disputes Pertaining To Real Estate Sector

Home-buyers as “Financial Creditors” under Insolvency and Bankruptcy Code

Certain Lacunas Of RERA

Suggested Reforms

Conclusion

Bibliography