Choosing the right forum between Real Estate Regulatory Authority (RERA) and Consumer Court for filing complaints against developers and banks can be confusing for home buyers.
We at MNG Law Office, have been dealing with the cases in RERA since the implementation of RERA Act i.e., since 2016. We have dealt with cases in both RERA and Consumer Court PAN-India.
This article breaks down the key differences, including scope of Jurisdiction, Background, timeline for obtaining Judgment, process of execution of Judgment, timeline for execution of Judgment amongst others differences between RERA and Consumer Courts with the aim to guide the home buyers in choosing the right forum to seek justice. The comparison is as follows:
| CRUCIAL ASPECTS | RERA | CONSUMER COURT |
| Against whom can the case be filed? | Builders/ Promoters/ Booking Agents / Brokers Banks[1] (Only when the bank has initiated proceeding under Section 13(4) of SARFESI Act, 2002 to take possession of the flat booked with the builder and mortgaged with the bank) | Builders/ Promoters/ Booking Agents / Brokers Banks |
| Time line for obtaining judgment: | 7-9 months (approx.) from the filing of complaint | District Commission: 12-15 months from the filing of complaint State Commission: 15-18 months from the filing of complaint National Commission: 2.5 years from the filing of complaint |
| Procedure to execute the judgment: When the judgment is only for refund | RERA will transfer the judgment to its recovery department which will issue the Recovery Certificate (RC). (Expected Timeline – 1.5 Month) RC will be sent to the District Magistrate (DM). (Expected Timeline – 1.5 Month) DM will forward the RC to the Tehsildar. (Expected Timeline – 1 Month) Continuous and repeated follow up with Tehsildar to execute the RC. In all probability, Tehsildar will not execute the RC. (Expected Timeline 3 to 6 Month) Filing of Writ Petition in High Court: On failure of Tehsildar to execute the RC, the next step is to file a writ petition in the High Court seeking direction to the Tehsildar to execute the RC. (Note: Generally such petitions are disposed of on first date by the Hon’ble HC with a direction to the Tehsildar to execute the RC in 3 months, but mostly most Tehsildars do not execute the RC even after the High Court’s order.) (Expected Timeline 1 Month in getting order + 3 Months of Waiting Period) Send a Contempt Notice to Tehsildar of at least 15 days (Expected Timeline – 1 Month) Initiation of Contempt Proceedings: If the Tehsildar fails to comply with the High Court’s order, initiate contempt proceedings. During contempt proceedings the Court issues Contempt Notice to Tehsildar, who will then take action subject to availability of the properties/balance in bank account of the Builder. (Timeline: 3 Months to 12 Months, depending upon case to case) | Execution of Decree in Consumer Forum: Attachment of Assets: Attach the bank accounts or properties of the builder. Timeline:1-3 Months Arrest of Directors: If the builder does not comply with the judgment, the Directors of the company may be arrested. Timeline:1-3 Months |
| If the judgment is of possession: | Transfer of Decree for Execution: Transfer to Civil Court: RERA can transfer the decree to the civil court. Appointment of Local Commissioner: The civil court will appoint a local commissioner to execute the sale deed (Provided the property is ready for possession) | Arrest of Directors of the company If they do not comply with the judgment/order of court of grant of possession Timeline: Upto 6 Months |
| Appeal | Yes, but builders do not go for appeal as they can delay the execution of the judgment easily | Yes, but 50% amount of the judgment must be deposited in the form of DD with the Appellate Consumer Court before filing the appeal. So, in most cases builders do not go for appeal, rather go for settlement. |
Note:
This file has been created on the basis of provisions under The Real Estate (Regulation And Development) Act, 2016, Karnataka Real Estate (Regulation and Development) Rules, 2017 and Consumer Protection Act, 1986 / Consumer Protection Act, 2019 and also on the basis of vast experience of the MNG Law office in handling cases in RERA and Consumer Courts.
[1] https://ibclaw.in/union-bank-of-india-vs-rajasthan-real-estate-regulatory-authority-rajasthan-high-court/?print=pdf
