RERA Does Not Bar Consumer Fora From Entertaining Complaints By Allottee, Reiterates Supreme Court

The Supreme Court has reiterated that Section 79 of the RERA Act does not bar the Consumer fora from entertaining complaint on behalf of an allottee.

In this case, the issue before the Delhi High Court was whether the proceedings under the Consumer Protection Act, 1986 can be commenced by home buyers (or allottees of properties in proposed real estate development projects) against developers, after the commencement of the Real Estate (Development and Regulation) Act, 2016. The High Court relied on the judgment in Pioneer Urban Land and Infrastructure Ltd. & Anr. Vs. Union of India to hold that the remedies available to the allottees under CPA and RERA are concurrent.

While considering the Special Leave Petition filed against this judgment, the bench comprising Justices Uday Umesh  Lalit and Vineet Saran noted that in a recent judgment [Imperia Structures Ltd. Vs. Anil Patni and Another], it was held that Section 79 of the RERA Act would not in any way bar the Commission or Forum under the provisions of the Consumer Protection Act to entertain any complaint on behalf of an allottee.

"Thus, the instant matter stands concluded by decisions of this Court in Pioneer Urban Land and Infrastructure Ltd. and M/s Imperia Structures Ltd. In the circumstances, we see no reason to interfere in the matter. This SLP is therefore, dismissed.", the bench said while dismissing the SLP.

In M/s Imperia Structures Ltd., the Court had held that a complaint before Consumer Fora by allottees against builders is not barred by the Real Estate (Regulation and Development) Act, 2016. "Again, insofar as cases where such proceedings under the CP Act are initiated after the provisions of the RERA Act came into force, there is nothing in the RERA Act which bars such initiation. The absence of bar under Section 79 to the initiation of proceedings before a fora which cannot be called a Civil Court and express saving under Section 88 of the RERA Act, make the position quite clear. Further, Section 18 itself specifies that the remedy under said Section is "without prejudice to any other remedy available". Thus, the parliamentary intent is clear that a choice or discretion is given to the allottee whether he wishes to initiate appropriate proceedings under the CP Act or file an application under the RERA Act", the court had observed in that case.

Case: TODAY HOMES AND INFRASTRUCTURE PVT LTD vs. AJAY NAGPAL [r Special Leave to Appeal (C) No(s). 23386/2019]
Coram: Justices Uday Umesh Lalit and Vineet Saran
Counsel: Adv Kanika Agnihotri, AOR Manish K. Bishnoi

Click here to Read/Download Order

Read Order