RERA vs. Consumer Forum: Which One Should You Choose for Your Real Estate Dispute?

General | Author: Riya Kapoor|

Highlights

• RERA is a statutory body established under the Real Estate (Regulation and Development) Act, 2016, to promote transparency, accountability, and efficiency in the real estate sector.

• Consumer Forum, under the Consumer Protection Act, 1986, handles complaints related to goods and services, including real estate.

In the dynamic real estate market, buyers often face issues such as delays in possession, poor construction quality, and misrepresentation by developers. Two primary forums for resolution are:

• RERA (Real Estate Regulatory Authority)

• Consumer Forum

This guide clarifies their differences, advantages, and the ideal scenarios for choosing one over the other.

What is RERA?

RERA is a statutory authority under the Real Estate (Regulation and Development) Act, 2016.Its aim is to protect homebuyers and ensure developers comply with legal standards.

Issues RERA addresses:

• Project delays

• Non-compliance with specifications

• Failure to deliver possession on time
  

What is a Consumer Forum?

A Consumer Forum is a government-established body under the Consumer Protection Act, 1986.It deals with a wide range of consumer grievances, including real estate.

Issues Consumer Forums address:

• Defective services

• Delay in delivery

• Misrepresentation by service providers

They can grant compensation or impose fines.

Key Differences Between RERA and Consumer Forum

1. Jurisdiction:

• RERA: Only real estate-related issues

• Consumer Forum: All goods and services, including real estate

2. Timeframe for Filing Complaints:

• RERA: Within a specific timeframe after the dispute arises

• Consumer Forum: Within 2 years of the dispute, with some flexibility

3. Filing Process:

• RERA: Online portal, complaint form, documents, and a nominal fee

• Consumer Forum: Online or offline filing based on claim value (district/state/national)

4. Scope of Redressal:

• RERA: Real estate issues like delivery, quality, title disputes

• Consumer Forum: Compensation, refunds, action across sectors

5. Penalty for Non-Compliance:

• RERA: Fines, compliance orders

• Consumer Forum: Fines, refunds, compensation
  

When to File a Complaint with RERA

RERA is ideal for issues directly related to real estate transactions:

• Project Delays: Possession not delivered on time

• Non-compliance with Promises: Amenities, design, or quality not as promised

• Unregistered Projects: Developer fails to register under RERA

• Title Disputes: Issues with land or property ownership

• Construction Defects: Quality below promised standards

• Agent Misconduct: Fraud, unethical practices by real estate agents
  

When to File a Complaint with a Consumer Forum

Consumer Forums are better for broader consumer-related disputes:

• Non-Delivery of Property: Developer refuses delivery despite reminders

• Faulty Services: Electrical, plumbing, or promised facilities not delivered

• False Advertising: Amenities or services falsely promised

• Monetary Claims: Seeking compensation for negligence or breach of contract
  

Conclusion: RERA vs. Consumer Forum

Both RERA and Consumer Forums resolve disputes—but they differ in scope:

• Choose RERA for real estate-specific disputes: delays, construction quality, title issues.

• Choose Consumer Forum for broader issues: defective services, misrepresentation, compensation.

Evaluate your dispute:

• Real estate-specific? ➝ RERA

• Consumer rights or compensation-based? ➝ Consumer Forum

Related Services: Real estate agent registration, Project registration, Project extension, Project quarterly compliances