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Two builders have approached the Delhi High Court in an effort to prevent the homebuyers to approach the consumer forums to seek refund or compensation in delayed incomplete projects. The petitioners have argued that complaints relating to ongoing projects should only be referred to the Real Estate Regulatory Authority (RERA) and not to consumer forums.
A single judge bench consisting of Justice Yogesh Khanna admitted the two cases and issued notices to the respondents. The court has scheduled to hear the case on Monday. The HC had put a hold on the proceedings in the matter before the National Consumer Disputes Redressal Commission (NCDRC). In both the cases the Commission has decided in favour of the buyers, aggrieved by which the builders have challenged it before the High Court. The two builders are — Today Homes & Infrastructure Ltd and Ramprastha Promoters & Developers Pvt Ltd .
The Real Estate Regulatory Authority Act came into force on the May 1, 2017 and applies to incomplete and ongoing projects across the country.
The petitioners have argued that under section 71 of the RERA Act if a complaint is pending before any consumer fora, then the consumer with the permission of the forum “may” withdraw the pending complaint and “may” file an application before the real estate regulator. The argument is based on the fact the since both the cases were filed before the forum after the law came into force, the consumer courts have no jurisdiction to entertain such cases.
However, the Union cabinet has included “real estate” as a service under the proposed Consumer Protection Bill. Abhay Upadhyay of Fight for RERA, an NGO, said. “This is now settled that Section 71 only provides option to complainant to withdraw its complaint and file it before RERA and it is not a mandatory provision. Section 79 only bars civil courts and not consumer forums”.
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