SC says RERA can delegate powers to listen to homebuyer complaints

The Supreme Court has said that the Real Estate Regulatory Authority (RERA) can transfer its powers to a single member to listen to the complaints from homebuyers against builders.

A three-judge bench headed by Justice U U Lalit said that Section 81 of the Real Estate (Regulation and Development) Act, 2016 enables the authority to transfer its functions and power to any of its members by general or special order.

The top court said that the scheme of the Act, 2016 renders an in-built mechanism and any order passed on a complaint by the authority is appealable if any clear error is left by the authority either in computation or in the amount refundable to the homebuyer or allottee.

The apex court said that the Real Estate (Regulation and Development) Act, 2016 (RERA) is retroactive (taking effect from a date in the past) in nature and includes all ongoing projects for which a completion certificate has not been released.

The top court said that the legislative intent is to make the Act applicable not just to the projects which were yet to begin after the Act became operational but additionally to bring under its fold the continuing projects and to preserve from its inception the rights of the stakeholders.

The unambiguous language of the statute is retroactive in operation. The legislature consciously set a retroactive statute to ensure the sale of plot, flat or building, realty projects is done effectively and transparently so that the interest of consumers in the realty sector is preserved by all means.

The bench, additionally including Justices Ajay Rastogi and Aniruddha Bose, made it clear that the value which has been decided and refundable to the allottees or homebuyers either by the authority or the adjudicating officer in terms of the order is recoverable within the ambit of Section 40(1) of the Act.

The judgment dated November 11 came on a plea filed by Newtech Promoters and Developers against an Allahabad High Court order which rejected its appeal against an order of a single member of the Uttar Pradesh Real Estate Regulatory Authority (Authority).

As per the order, the company was ordered to refund the principal sum along with interest to homebuyers who were not given possession of apartments on time.

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Also read: TN RERA to resolve complaints against projects made before 2016