Prospective Home Buyers Can Also Approach RERA For Remedies: Punjab & Haryana High Court

The Punjab & Haryana High Court has made it clear that home buyers who have deposited certain amount and are prospective allottees can also filed complaint in Real Estate Regulatory Authority (RERA) for redressal of grievances. The Court rejected the contention of a Real Estate Company that the complainants are not home buyers or allottees because the project is not in existence and they only tendered money for prospective projects, hence no cause of action will arise.Observing that this argument was "rudderless" a division bench of Justice Sureshwar Thakur and Justice Vikas Suri said, "The reason being that when, within the ambit of the statutory meaning assigned to an 'allottee', wherebys becomes covered also potential as well as prospective allottees, vis-a-vis the prospective projects, therebys not only in respect of ongoing projects, but also in respect of projects to be launched in future, rather, at the instance of the present petitioners, that therebys the present respondent but became an allottee." The writ petition was filed challenging an order passed by the Haryana Real Estate Regulatory Authority (RERA), Gurugram. The Petitioners, M/S Ramprastha Developers Pvt. Ltd. and others, were aggrieved by the decision, which was based on complaints filed by homebuyers. The issues raised by the petitioners included the maintainability of the writ petition, asserting that the impugned RERA order was beyond jurisdiction (coram non judice). They further argued that the complainants lacked locus standi, as they were not “allottees” in the project under the RERA Act, hence RERA lacked adjudicatory competence.On the other hand, homebuyers argued that the petitioners had an alternative statutory remedy under section 43(5) of the RERA Act to filed an appeal, hence the writ petition is not maintainable.After examining the submissions, the Court RERA had jurisdiction to entertain complaints from allottees under sections 31 and 37 of the RERA Act.According to Section 31, any aggrieved person may file a complaint with the Authority or the adjudicating officer, as the case may be, for any violation or contravention of the provisions of the Act or the rules and regulations made thereunder, against any promoter, allottee or real estate agent, as the case may be.As per Section 37, the Authority may, for the purpose of discharging its functions under the provisions of the Act or rules or regulations made thereunder, issue such directions from time to time, to the promoters or allottees or real estate agents, as the case may be, as it may consider necessary and such directions shall be binding on all concerned.The Court clarified that under RERA, both existing and prospective allottees have the right to approach the authority with their grievances.While dismissing the plea, the Court held that, "the alternative remedy as available to the present petitioners, inasmuch, as its making an appeal against the impugned order, thus is not an efficacious remedy, as the jurisdiction assumed on the complaint was non-est or was coram non judice."Title: M/S RAMPRASTHA DEVELOPERS PVT LTD AND ORS v. STATE OF HARYANA AND ORSCitation: 2025 LiveLaw (PH) 71Click here to read/download the order

Prospective Home Buyers Can Also Approach RERA For Remedies: Punjab & Haryana High Court

Aiman J. Chishti

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