When RERA Compliance Fails: Promises Turn into Nightmares

Have you invested your life’s savings into a dream home, only to be left waiting endlessly due to project delay, or worse, become a victim of builder fraud? If so, you’re not alone. Across India, RERA compliance thousands of homebuyers are facing the same painful ordeal delayed possession, misleading advertisements, and broken promises.

But there is good news: you are not helpless. The Real Estate (Regulation and Development) Act, 2016 (RERA) was created to empower you and protect your home possession rights. Through RERA compliance, you can fight back and reclaim what’s legally yours.

This article will break down your legal rights, explain the process of filing complaints, and guide you through how to use RERA compliance tools effectively.

What is RERA compliance and Why It Matters

RERA compliance refers to strict adherence to the Real Estate (Regulation and Development) Act, a game-changing law that applies across India, including Maharashtra. Its aim? To bring transparency, accountability, and fairness to India’s real estate sector.

• Key Provisions under RERA:

1. Section 3: Mandatory registration of all real estate projects and promoters
2. Section 11: Builder’s duty to adhere to approved plans and provide promised amenities
3. Section 18: Compensation for delay in possession or refund with interest
4. Section 31: Right of any aggrieved homebuyer to file a complaint
5. Section 44: Appeal to the Appellate Tribunal for unsatisfactory outcomes

Each state has its own RERA portal. In Maharashtra, it is MahaRERA which handles thousands of complaints from Indian homebuyers seeking justice.

1. Common Problems Faced by Indian Homebuyers

• Project Delay and Escalating Costs: Builders frequently delay possession without valid reasons. This leaves buyers paying both EMIs and rent, draining financial stability. Some developers increase costs mid-way, exploiting vague clauses.
• Case Example: In Neelkanth Greens vs. Buyers Forum, the Bombay High Court upheld buyers’ right to timely delivery under RERA’s timelines.
• Builder Fraud: Some developers sell the same unit to multiple buyers, forge approvals, or publish misleading advertisements. These acts constitute builder fraud and are punishable under RERA.
• Incomplete Possession and False Amenities: Even after giving possession, some builders fail to deliver amenities promised in brochures like a clubhouse, garden, or parking. This violates home possession rights under Section 11 of RERA.

2. Practical Steps for Affected Homebuyers

If you’re stuck with a delayed project or cheated by false promises, here’s how to act using RERA compliance tools:

• Step-by-Step Guide to File a RERA Complaint

Gather Documents

1. Sale agreement
2. Payment receipts
3. Builder correspondence (emails, chats)
4. Advertisements, brochures
5. Builder’s RERA registration details

• Verify Project Registration: Visit your state’s RERA portal (e.g., MahaRERA) and check the project’s status.

File the Complaint

1. Log in as a “Complainant”
2. Use Form A
3. Upload evidence
4. Pay a nominal fee (₹1,000–₹5,000)

• Attend Hearings: Present your case clearly or hire a legal professional. Most matters are heard within 60 days.
• Escalate if Needed: If dissatisfied, appeal to the RERA Appellate Tribunal under Section 44.

3. Legal Remedies & Rights Under RERA

RERA offers several remedies to protect your home possession rights:

• Refund with Interest (Section 18)

If possession is delayed beyond the promised timeline, you may withdraw from the project and claim a full refund with interest.

• Compensation Without Leaving the Project

Choose to stay, and RERA can order the builder to pay monthly compensation until possession.

• Defect Liability

If your property has structural defects or poor quality, the builder must fix them within 30 days up to 5 years after possession.

• Penalties for Non-Compliance

If the builder ignores RERA’s order:

1. Penalties of up to 10% of project cost
2. Denylisting from future projects
3. In serious fraud cases, imprisonment up to 3 years

What to Avoid & When to Seek Legal Help

• Don’t Accept Verbal Promises

Only written commitments matter in law. Insist on documented proof for everything.

• Don’t Delay Action

The longer you wait, the weaker your position may become. Act promptly under RERA compliance timelines.

• Don’t Rely on Generic Advice

Every case is different. If your matter involves fraud, large investments, or builder resistance consult a legal professional.

Why Hire a Lawyer?

• RERA was created to help homebuyers, but legal procedures can still be complex. A skilled RERA lawyer can:

1. File and follow up your complaint
2. Represent you during hearings
3. Secure possession, refund, or compensation
4. Escalate to the Tribunal or High Court if needed

Lawyers specialising in builder fraud, project delay, and home possession rights can make a real difference in the outcome of your case.

Conclusion: Take Legal Action Before It’s Too Late

Buying a home should bring peace not anxiety. If you’re dealing with project delay or builder fraud, don’t stay silent. RERA compliance gives you a powerful legal toolkit to claim your rights, secure possession, and get justice.

Be proactive. Understand your rights. And remember, the law is on your side but only if you use it.

Disclaimer

This article is provided for general informational purposes only and does not constitute legal advice, legal opinion, or a substitute for professional consultation. Legal issues are often complex and fact-specific. Laws may also vary based on jurisdiction and are subject to change. Readers are strongly encouraged to consult a qualified and licensed legal professional for advice Customised to their individual circumstances. Tigde Law Firm does not accept any responsibility for actions taken based on this content without appropriate legal counsel.

About Tigde Law Firm

Tigde Law Firm is recognised among the top 10 law firms in India, offering full-service legal expertise in complex areas including EOW, ED, corporate law, property, builder disputes, divorce, civil, commercial, and criminal cases. Headquartered in Thane with offices across Mumbai and Navi Mumbai, Tigde Law Firm serves clients nationwide with a strong team of over 100 lawyers. From local courts to the High Court and Supreme Court, TLF leads with trusted, result-driven advocacy.

Founded by Sachin Subhash Tigde and Shubhash Tigde, both experienced High Court lawyers in Maharashtra with a legacy of over 45 years and second-generation expertise, the firm has handled more than 5,000 cases. With 50+ in-house advocates across Mumbai, Navi Mumbai, and Thane, Tigde Law Firm is widely regarded as the best law firm in Thane and home to some of the most reliable advocates and lawyers in Thane. Specialising in property and redevelopment matters, RERA compliance, society disputes, divorce, NCLT, civil, criminal, corporate, and IP law, TLF delivers clarity and confidence to clients facing complex legal challenges.

Call Now for professional legal assistance legal matters:

• Phone: +91 9326261981
• Email: inquiry@tigdelawfirm.com