Despite RERA, flat buyer entitled to seek remedy under Consumer Protection Act: SC

In an important judgement fortifying the rights of a consumer, the Supreme Court on Monday held that despite the enforcement of the Real Estate (Regulation and Development) Act, 2016, a flat buyer is entitled to pursue his remedy under the Consumer Protection Act for deficiency in service.

A bench of Justices U U Lalit and Vineet Saran said Section 79 of the RERA Act does not in any way bar the Commission or Forum under the provisions of the Consumer Protection Act to entertain any complaint.

The court, after going through the provisions of the 2016 law, said the parliamentary intent is clear that a choice or discretion is given to the allottee whether he wishes to initiate appropriate proceedings under the CP Act or file an application under the RERA Act.

The court passed the judgement rejecting appeals filed by M/s Imperia Structures Ltd against the directions by National Consumer Disputes Redressal Commission (NCDRC) to refund the money of flat to buyers on delay in project in Gurgaon with Rs 50,000 cost.

It rejected a contention that since the project was registered under the RERA, other proceedings should not be allowed as it would cause drain on the developer.

"Section 79 of the RERA Act bars jurisdiction of a Civil Court to entertain any suit or proceeding. However, Section 88 specifies that the provisions of the RERA Act would be in addition to and not in derogation of the provisions of any other law," the bench said.