Relief to flat and plot buyers are restitutionary as well as compensatory

Since India has a burgeoning middle class, real estate demand and disputes are going to be a frequent issue. One ought to be aware of the protections offered by law in case of default by the promoter.

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BUYING one's own house or a piece of land is a lifelong dream; it is intricately linked to the course of one's life itself. Yet, we often see allottees who have booked such properties experiencing inordinate delays in getting possession, and sometimes they are even duped outrightly. This jeopardizes the finances of the allottees, and they suffer mental agony and physical hardships.

But now there are robust legal mechanism in place. The allottees can approach either the Real Estate Regulatory Authority under the Real Estate (Regulation and Development) Act, 2016 ('RERA Act') or the Consumer Disputes Redressal Commissions under the Consumer Protection Act, 2019 ('CPA') for restitutionary as well as compensatory relief.

Rights under Real Estate (Regulation and Development) Act

Section 18 of the RERA Act provides that in case the promoter fails to complete, or is unable to give possession of an apartment, plot or building, in accordance with the terms of the agreement for sale or by the date specified therein, or due to discontinuance of their business as a developer on account of suspension or revocation of the registration under this Act, or for any other reason, they shall be liable to pay to the allottees on demand, in case the allottee wishes to withdraw from the project:

(i) the amount received by them as payment in respect of that apartment, plot, building, as the case may be,