The implementation of the Real Estate (Regulation and Development) Act, 2016 (RERA) was a landmark step towards ensuring transparency, accountability, and fairness in the real estate sector. However, despite RERA’s regulatory framework, homebuyers still face several challenges when dealing with real estate transactions. This blog explores the common disputes homebuyers encounter, key case laws, and recent developments in RERA to understand how the law is evolving to address these issues.

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1. Delay in Project Completion

One of the most persistent issues in real estate is project delays, which leave homebuyers financially strained as they continue paying EMIs and rent without receiving possession.

• Legal Provision: Under Section 18 of RERA, buyers are entitled to a full refund with interest or compensation if the developer fails to deliver the project within the promised timeline.
• Case Law: Puneet Kaur v. TDI Infrastructure Ltd. (2021) – The Punjab RERA directed the builder to refund the full amount with interest due to an undue delay in project completion.

2. Non-Adherence to Promised Specifications

Many homebuyers receive properties that do not match the specifications promised in the agreement, such as reduced carpet area, inferior construction quality, or missing amenities.

• Legal Provision: Under Section 14 of RERA, developers must adhere to sanctioned plans and specifications. Any deviation without the buyer’s consent is a violation.
• Case Law: M/S Pioneer Urban Land v. Govindan Raghavan (2019) – The Supreme Court ruled in favor of the buyer, stating that the developer must compensate for changes made to the promised property specifications.

3. Fraudulent Advertisements and Misrepresentation

Some developers mislead buyers through false advertisements, leading them to invest in projects that do not exist or lack proper approvals.

• Legal Provision: Section 12 of RERA holds promoters accountable for misleading advertisements and grants homebuyers the right to compensation if deceived.
• Case Law: Lodha Group Case (2022) – The Maharashtra RERA imposed a hefty penalty on the developer for misleading advertisements regarding project approvals and amenities.

4. Cancellation of Projects and Refund Issues

If a project is canceled or abandoned, homebuyers often struggle to get their refunds.

• Legal Provision: Section 18 ensures that homebuyers can claim a refund with interest if a project is stalled or canceled.
• Recent Development: In 2023, the Haryana RERA (HRERA) introduced strict timelines for refunds, ensuring that homebuyers receive compensation within a stipulated period.

5. Poor Quality of Construction and Defects After Possession

Many buyers experience construction defects, such as leakage, cracks, and electrical failures, soon after moving into their homes.

• Legal Provision: Section 14(3) of RERA mandates that developers rectify structural defects within five years of possession at no extra cost.
• Case Law: Kumar Urban Development Ltd. v. Maharashtra RERA (2021) – The tribunal ordered the builder to carry out repairs at its own expense after the buyer reported significant construction flaws.

6. Unfair Builder-Buyer Agreements

Builders often draft agreements that favor them disproportionately, including hidden charges, penalty clauses, and unclear refund policies.

• Legal Provision: Section 13 of RERA ensures that agreements must be fair and in line with the act’s guidelines, protecting buyers from one-sided terms.
• Case Law: Imperia Structures Ltd. v. Anil Patni (2020) – The Supreme Court emphasized that unfair builder-buyer agreements can be challenged under both RERA and consumer laws.

7. Lack of Proper Registration and Approvals

Many homebuyers unknowingly invest in projects that are either not registered under RERA or lack proper approvals.

• Legal Provision: Section 3 of RERA mandates that all projects above a certain threshold must be registered with the respective state RERA authority.

Recent Development: In 2024, Uttar Pradesh RERA (UPRERA) launched a special drive to penalize developers selling unregistered projects, increasing buyer awareness

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1. Strengthening Online Complaint Mechanisms

Several states have improved their RERA portals to allow buyers to file complaints, track case status, and access legal decisions online.

2. Increased Enforcement and Penalties

• In 2023, the Maharashtra RERA (MahaRERA) imposed a record ₹50 crore fine on a builder for failing to complete a project and misleading buyers.
• More state authorities are blacklisting non-compliant developers to prevent repeat offenses.

3. Faster Dispute Resolution via Fast-Track Tribunals

• The Real Estate Appellate Tribunal (REAT) is now prioritizing delayed possession cases, ensuring faster redressal for homebuyers.
• Some states, including Karnataka and Delhi, have introduced conciliation forums to resolve disputes without prolonged litigation.

4. Judicial Rulings Expanding RERA’s Scope

Courts have upheld that RERA applies even to projects launched before 2016, ensuring that older projects also come under regulatory scrutiny.

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Despite the robust framework of RERA, homebuyers continue to face challenges in securing their rights. However, with landmark case laws, strict enforcement, and ongoing reforms, RERA is steadily improving the real estate landscape. As awareness grows, buyers must take proactive steps, such as verifying RERA registration, reading agreements carefully, and using state RERA portals for complaints.

For homebuyers, RERA is the most powerful legal tool to ensure fairness, transparency, and protection in real estate investments. By staying informed and vigilant, they can safeguard their rights and avoid falling into real estate disputes.