What Happens to NCDRC after RERA?
Dec 13, 2018 Legal Guidance
Since Real Estate Regulation and Authority (RERA) have come into full force, the expectation of the buyers has increased folds. RERA is focused on making it easier for the buyers by taking stricter actions against the developers who exploit the interest of the buyers. It also aims are removing the discrepancies that are there for buying and selling of the property.
Before RERA, the buyers did not have any government-run organisation where they could address their grievances. Though the option of approaching NCDRC (National Consumer Dispute Redressal Commission) was there but the forum could only do so much.
Before RERA, the buyers did not have any government-run organisation where they could address their grievances. Though the option of approaching NCDRC (National Consumer Dispute Redressal Commission) was there but the forum could only do so much.
- The NCDRC only allowed the complaints to be filed if the value of the property was Rs 1 crore or above. If it involved property less than Rs 1 crore, then the consumer first had to district level authority then state-level authority to claim the justice before approaching the NCDRC.
- Unlike RERA, the NCDRC cannot file a complaint or start an investigation regarding the developer on its own.
- To register a complaint with NCDRC, the consumer or the agency filing the complaint must be registered.
- RERA has the power to fine and even grant the defaulting developers a substantial amount of jail time while the same is not true for NCDRC. It can only impose fine on the defaulter.
Recently, the RERA chiefs have said that the consumers should be barred from approaching the consumer forums as they halt the investigation process that RERA carries out. Since RERA does not only aims at protecting the rights and interest of the buyers, they also work towards finding the defaulter and making sure that the consumers are treated fairly. RERA aims at launching the investigations on the projects that are stuck in the development phase.
So what happens to the customers who want to approach the consumer forum? Even though it is said that the RERA handles things better than NCDRC and has more power, there is no denying in the fact that the panel of the NCDRC has proven to be very effective in the past. They have also proved to be very effective and reliable to an extent where RERA is nowhere near even.
NCDRC has also made changes to the consumer protection right that have been a great relief to the homebuyers. They ruled that the developers cannot force the homebuyers to settle their dispute outside the consumer forum through arbitration. RERA has a lot to learn from them as they have set an excellent precedent for them.
So what happens to the customers who want to approach the consumer forum? Even though it is said that the RERA handles things better than NCDRC and has more power, there is no denying in the fact that the panel of the NCDRC has proven to be very effective in the past. They have also proved to be very effective and reliable to an extent where RERA is nowhere near even.
NCDRC has also made changes to the consumer protection right that have been a great relief to the homebuyers. They ruled that the developers cannot force the homebuyers to settle their dispute outside the consumer forum through arbitration. RERA has a lot to learn from them as they have set an excellent precedent for them.
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