The Real Estate (Regulation and Development) Act 2016 fundamentally altered the legal landscape for homebuyers, builders, and real estate agents across India. Before its enactment, a homebuyer whose builder had delayed possession, misrepresented project specifications, or diverted funds had limited and cumbersome remedies spread across consumer courts, civil courts, and writ jurisdiction. RERA consolidated these remedies into a dedicated regulatory and adjudicatory framework with its own authority, appellate tribunal, and enforcement mechanisms. For residents of Indore and Madhya Pradesh, the Madhya Pradesh Real Estate Regulatory Authority provides a structured forum for resolving disputes arising from real estate transactions. This article examines the RERA framework, the categories of complaints that can be filed, the procedure before the MP RERA, and the legal considerations that determine an effective complaint strategy.

The RERA Framework: Registration, Regulation, and Rights

The Real Estate (Regulation and Development) Act 2016 operates on two levels simultaneously. It is a regulatory statute that imposes obligations on promoters, real estate agents, and projects, and it is an adjudicatory statute that provides remedies to aggrieved allottees when those obligations are not met.

Project registration is the foundational requirement under RERA. Every real estate project where the land area exceeds five hundred square metres or the number of apartments exceeds eight must be registered with the MP RERA before any advertisement, marketing, or sale is made. Registration requires the promoter to disclose project details, approvals, layout plans, specifications, timelines, and financial information on the RERA portal, creating a public record that allottees can access and rely upon.

Agent registration is similarly mandatory. Real estate agents who facilitate the purchase and sale of registered projects must themselves be registered with the MP RERA. An unregistered agent cannot facilitate transactions in registered projects.

The rights of allottees under RERA include the right to receive timely possession in accordance with the agreement, the right to receive the property as per the specifications agreed upon, the right to obtain necessary documents including title documents and completion certificates, the right to be informed of any proposed addition, alteration, or modification to the project, and the right to claim refund with interest if the promoter fails to deliver possession within the agreed period.

Takeaway: RERA imposes specific statutory obligations on promoters and agents, and breach of any of these obligations gives the allottee a right to approach the MP RERA for remedy, making registration status and disclosed project details the starting point of any RERA complaint analysis.

Categories of RERA Complaints Before the MP RERA

Possession Delay and Refund Claims

Possession delay is the most frequently filed category of RERA complaint across India. Under Section 18 of RERA, if the promoter fails to complete construction or deliver possession by the date specified in the agreement for sale, the allottee has two options: withdraw from the project and claim a full refund with interest, or continue with the project and claim interest for the period of delay until actual possession is delivered.

The interest payable on delayed possession or refund is calculated at the rate notified by the MP RERA, which is typically the State Bank of India’s highest marginal cost of lending rate plus two percent. This rate is applied from the date on which possession was due until the date of actual refund or possession.

The choice between refund with interest and continued possession with interest compensation is a significant strategic decision. Where the project is substantially complete, and possession is imminent, claiming interest for the delay period may be more valuable than withdrawing and claiming a refund that will take time to be executed. Where the project is significantly delayed or there are concerns about the promoter’s financial stability, claiming a refund may be the more prudent option.

Structural Defects and Specification Deviations

Under Section 14(3) of RERA, the promoter is liable to repair or rectify structural defects that appear in the property within five years of possession being handed over, without charge. This five-year defect liability period is a significant statutory right that many allottees are unaware of.

Beyond structural defects, allottees can file complaints when the delivered property deviates materially from the specifications, floor plans, or amenities disclosed at the time of booking and specified in the agreement for sale. The promoter cannot make any additions or alterations to the sanctioned plans without the consent of the allottee and the necessary approvals from the competent authority.

False Advertisement and Misrepresentation

Section 12 of RERA makes the promoter liable to compensate the allottee for any loss caused by the allottee having acted based on any information contained in an advertisement, prospectus, or promotional material that was false, incorrect, or misleading. This provision is particularly relevant in cases where the promoter advertised amenities, specifications, or approvals that were not in place at the time of marketing.

Complaints Against Unregistered Projects

Marketing, advertising, or selling a project that is required to be registered with the MP RERA without obtaining registration is itself an offence under RERA. An allottee who has invested in an unregistered project that was required to be registered can file a complaint and claim compensation for the loss suffered.

The Complaint Procedure Before the MP RERA

Complaints for refund, interest on delay, and compensation are typically heard by the Adjudicating Officer appointed by the MP RERA. Complaints relating to violations of RERA provisions such as non-registration, false advertisement, and structural defects are heard by the MP RERA Authority itself.

Appeals from orders of the MP RERA lie to the Madhya Pradesh Real Estate Appellate Tribunal. Appeals from the Appellate Tribunal lie to the Madhya Pradesh High Court. 

RERA and the Consumer Protection Act: Concurrent Remedies

A question frequently asked by allottees is whether they can simultaneously file a complaint before the MP RERA and before the Consumer Forum. The Supreme Court in M/s Imperia Structures Ltd v. Anil Patni (2020) clarified that the remedies under RERA and the Consumer Protection Act are concurrent and not mutually exclusive. An allottee can choose either forum, but cannot claim the same relief twice.

In practice, RERA is generally the more appropriate forum for real estate disputes given its specialized jurisdiction, the technical expertise of the authority in construction and real estate matters, and the availability of industry-specific remedies such as interest calculated at RERA-prescribed rates. Consumer forums remain relevant for matters involving consumer goods and services outside the RERA domain.

For clients dealing with property matters that have both a RERA dimension and a civil litigation dimension, our full property and real estate practice is outlined on our Areas of Practice page. 

Frequently Asked Questions