RERA Lawyer Kolkata Builder Dispute

RERA mandates that every real estate project (residential or commercial) exceeding 500 square metres or eight apartments must be registered with the state RERA Authority before any advertisement, marketing, or sale. The builder must: (a) disclose all project details — layout plan, approvals, land title, schedule of completion, carpet area of each unit, and details of contractors and consultants — on the RERA website. (b) Deposit 70% of the amounts collected from allottees in a separate escrow account, used only for construction and land costs, with withdrawals certified by a professional. (c) Deliver possession by the agreed date, or pay interest at the prescribed rate for delay. (d) Rectify structural defects or defective workmanship within five years of possession without charge. (e) Execute a registered sale deed and form a society/association of allottees on completion. (f) Not alter the sanctioned plan or specifications without the consent of two-thirds of the allottees. These obligations are enforceable through complaints to the RERA Authority, which can order refund, compensation, penalty, and — in serious cases — revocation of registration and imprisonment. For homebuyers in Kolkata, RERA is the primary forum for builder disputes, offering relief that was previously available only through consumer courts or protracted civil litigation.

Filing a complaint with WB RERA is a relatively straightforward process. The complaint (in Form M under the WB RERA Rules) must include: (a) the complainant's details and the builder's details; (b) the relief claimed — possession, refund with interest, compensation, rectification of defects, or any combination; (c) a concise statement of facts — the project details, the agreement date, the promised possession date, the actual status, and the builder's default; (d) copies of all relevant documents — the allotment letter, the agreement for sale, payment receipts, correspondence with the builder, and photographs of defects (if applicable); and (e) an affidavit verifying the facts. The complaint can be filed online through the WB RERA portal or in physical form. There is no court fee for complaints before RERA (though some states charge a nominal fee). Once the complaint is registered, the RERA Authority issues notice to the builder, who must file a reply. The Authority hears both sides — often in a summary hearing where both parties are present — and passes an order. The process is designed to be completed within 60 days. Advocate Panchanand Shaw drafts comprehensive RERA complaints — ensuring all necessary documents are attached, the legal grounds are clearly articulated, and the relief claimed is appropriate to the facts.

The RERA Authority has broad powers to grant relief to homebuyers. (a) Refund with interest: If the builder has delayed possession unreasonably or has abandoned the project, the allottee can seek a full refund of the amount paid with interest at the prescribed rate (typically SBI's Marginal Cost of Lending Rate + 2%, currently around 10-12% per annum). (b) Possession with interest and compensation: If the allottee wants the flat and the project is capable of completion, the RERA Authority can direct the builder to deliver possession by a specified date and pay interest for the delayed period, plus compensation for mental agony and harassment. (c) Compensation for defective construction or deficiency in service. (d) Penalty on the builder — up to 5% of the estimated project cost, or — in cases of continued violation — up to 10%. (e) Revocation of project registration and imprisonment in cases of egregious violations. (f) An order for execution of the sale deed where the builder has been delaying or refusing to register it. Advocate Panchanand Shaw advises clients on which remedy to seek — refund vs. possession — based on the project's status, the builder's financial health, and the allottee's personal circumstances.

Homebuyers in Kolkata have a choice between RERA and the Consumer Court for builder disputes. Key differences: (a) Jurisdiction: RERA covers only registered real estate projects and only disputes between allottees and promoters. Consumer courts cover a wider range of disputes (including those with unregistered projects, real estate agents, and disputes not covered by RERA). (b) Remedies: Both can order refund, compensation, and interest. Consumer courts can additionally award compensation for mental agony and punitive damages, which RERA does not typically award. (c) Speed: RERA proceedings are designed to be faster — 60 days for disposal. Consumer courts take 12-24 months. (d) Enforcement: RERA orders are enforced through the RERA Authority itself (including powers of attachment and penalty). Consumer court orders are enforced through the civil court execution process. (e) Appeals: RERA orders can be appealed to the RERA Appellate Tribunal within 60 days (with a pre-deposit of 30% of the penalty or the total amount payable). Consumer court orders are appealed to the State or National Commission. Advocate Panchanand Shaw evaluates each case individually and advises on the optimal forum — often, filing in RERA for speed and in the consumer court for broader compensation.

Builders and developers also face RERA complaints — some justified, some exaggerated, and some filed with mala fide intent. Defences available to a builder in a RERA complaint include: (a) Force majeure — the delay was caused by circumstances beyond the builder's control (e.g., a stay order from a court on the land, a government ban on construction during COVID-19, natural calamities). The RERA Authority recognises force majeure as a valid ground for extending the completion date. (b) The allottee defaulted — non-payment of instalments by the allottee, causing delay or inability to complete. (c) The allottee is not a 'consumer' — if the allottee is an investor who has purchased multiple units for commercial speculation, some consumer courts have held that such allottees are not 'consumers' under the Consumer Protection Act (though RERA does not distinguish between end-users and investors). (d) The complaint is barred by limitation, or there is no privity of contract between the complainant and the builder. Advocate Panchanand Shaw represents builders in RERA proceedings as well, mounting robust defences, negotiating settlements with allottees, and ensuring that the builder's rights are protected in what is often an allottee-favouring forum.