RERA Legal Remedies if Real Estate Project is Stuck

The Real Estate (Regulation and Development) Act, 2016 (RERA) was enacted in 2017 to address challenges in the real estate sector, particularly concerning stalled projects. This article delves into the legal remedies available to allottees when faced with a situation where their real estate project is stuck.

Legal Solutions for Allottees

# A. Taking Possession with Delayed Interest and Penalty

1. Complaint Filing: Allottees, either through their Advocate, Company Secretary, Chartered Accountant, or by themselves, can initiate legal proceedings by filing a complaint under Sections 18 and 31 of the Act with the Designated Authority of RERA.

2. Show Cause Notice: Following the complaint, RERA reviews the case and issues a notice to the builder, prompting them to show cause as to why the relief should not be granted to the complainant under Section 18.

3. Possession and Compensation: Allottees, upon successful proceedings, have the right to obtain possession of the property along with interest on the delayed period, the rate of which is determined by the court.

4. Execution of Order: If the builder fails to comply with the court orders, the complainant can proceed with filing the execution of the order, ensuring that the court's decision is enforced.

5. Penalties for Non-Compliance: In cases of persistent non-compliance by the builder, RERA can invoke Section 63 of the Act. This section imposes a penalty of 5% of the total project cost on the builder, in addition to the relief awarded to the complainant.

# B. Withdrawal from the Real Estate Project

1. Complaint Filing: Allottees who no longer wish to continue with the real estate project can file a complaint under Section 18. This complaint can be submitted through their Advocate, Company Secretary, Chartered Accountant, or by themselves.

2. Similar Process: The legal process for withdrawal mirrors steps 2 to 7 outlined in the previous section. This allows allottees to seek a refund of the money invested along with applicable interest.

3. Appellate Tribunal and High Court: If the complainant remains dissatisfied with the decision of the RERA, they have the option to approach the Real Estate Appellate Tribunal. Furthermore, if needed, an appeal can be filed in the jurisdictional High Court within 60 days of receiving a copy of the order.

RERA offers a comprehensive legal framework to protect the rights of allottees in the event of a stalled real estate project. The Act empowers allottees with remedies such as obtaining possession with delayed interest, imposing penalties for non-compliance, and providing an avenue to withdraw from the project. As the real estate industry continues to adapt to regulatory changes, RERA's legal provisions play a pivotal role in safeguarding the interests of allottees and fostering a fair and transparent real estate ecosystem.

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