Reply to a RERA complaint: for builders and promoters

What it is

The Real Estate (Regulation and Development) Act, 2016 — RERA — lets a buyer of a flat, plot or building complain against the builder to the state's Real Estate Regulatory Authority, or to its adjudicating officer, a serving or former District Judge who decides compensation (Sections 31 and 71). In the Act, the builder or developer is the promoter; the buyer is the allottee.

When a buyer files a complaint, the Authority sends you, the promoter, a notice with a copy of the complaint. Your reply is your written answer to it: what the facts are, which of the buyer's claims you accept, which you dispute, and why. It is then defended at the hearings.

This page is for builders, developers and sellers who have received such a notice. If you are a buyer, read the RERA complaint guide instead.

When it applies

A reply is needed whenever the Authority or the adjudicating officer issues notice to you on a complaint. The common complaints are:

• Late possession — the buyer asks for a refund with interest, or interest for every month of delay, under Section 18(1).
• Refund after cancellation — the buyer says money paid has not been returned.
• Defects after possession, changes to the sanctioned plan, or amenities that were advertised and not provided.
• Compensation — claimed before the adjudicating officer under Section 71.

What the complaint can lead to matters, because it decides how seriously to treat it. The Authority can impose penalty or interest for breaches of the Act (Section 38), call for information and order an inquiry with the powers of a civil court (Section 35), and, during an inquiry, restrain an act that breaks the Act, even without notice to you (Section 36). In fixing compensation or interest, the adjudicating officer looks at any unfair gain you made, the buyer's loss, and whether the default is repeated (Section 72).

The steps and the timeline

1. Note the dates (day 0). Write down the date you received the notice and the date by which the reply is due. The period is set by the notice and your state's RERA regulations; it is not the same everywhere. If you need more time, ask in writing before it runs out.

2. Pull the project file (first week). For this buyer: the booking form, allotment letter and agreement for sale; the full payment ledger; every demand letter and reminder; and all correspondence. For the project: the registration certificate, any extension of registration under Section 6, the quarterly updates on the RERA website, approvals and their dates, and the occupancy or completion certificate if it has been issued.

3. Work out where you stand. An advocate reads the complaint against the file and sorts the buyer's claims into three groups: what is correct and should be accepted or settled, what is disputed on facts, and what is disputed on law. Points that often matter:

• The agreed date. What possession date does the agreement for sale actually give, and does it allow any extension?
• Delay reasons. Section 6 lets the Authority extend registration for force majeure — war, flood, drought, fire, cyclone, earthquake or another natural calamity — or in other reasonable circumstances without default by the promoter, for up to one year in all. A reason is only as good as the proof and the orders behind it.
• The buyer's own obligations. Section 19(6) requires the buyer to pay as the agreement says; Section 19(7) makes the buyer liable to interest on late payments; Section 19(10) requires the buyer to take possession within two months of the occupancy certificate.
• The right forum and the right amount. Compensation claims go to the adjudicating officer (Section 71). Check that the amounts claimed match the payment record.

4. File the reply. The reply answers the complaint paragraph by paragraph, sets out your own account of the facts, and attaches the documents that prove it. Your state's regulations decide the form, the number of copies, and whether it must be supported by an affidavit.

5. Hearings. Both sides are heard, often over several dates. The Authority must follow natural justice — a fair hearing for both sides — and otherwise regulates its own procedure (Section 38(2)). Settlement talks can run alongside; if the buyer's claim is partly right, an early offer can cut the interest that keeps running.

6. The order. The Authority or officer may dismiss the complaint, or order a refund with interest, monthly delay interest, compensation, or that you carry out your obligations. Unpaid amounts can be recovered as arrears of land revenue (Section 40). Ignoring the Authority's orders or directions attracts a daily penalty that can add up to 5% of the estimated cost of the project (Section 63).

7. Appeal. Either side can appeal to the Real Estate Appellate Tribunal within 60 days of receiving the order (Section 44(2)); a late appeal needs sufficient cause. A promoter's appeal is not heard until you deposit at least 30% of the penalty, or the total amount payable to the buyer with interest and compensation, or both, as the case may be (Section 43(5)). A further appeal lies to the High Court within 60 days of the Tribunal's decision (Section 58).

Documents needed

• The notice and the full complaint with its annexures.
• The booking form, allotment letter and agreement for sale for this unit.
• The payment ledger, receipts issued, and every demand letter and reminder sent to the buyer.
• The project's RERA registration certificate, any extension order under Section 6, and the quarterly updates filed.
• Sanctions and approvals, with their dates, and any order or event you say delayed the work.
• The occupancy or completion certificate, and the written offer of possession, if made.
• All correspondence with the buyer, including any settlement offers.
• A board resolution or authority letter for the person signing the reply, if the promoter is a company or firm.

Typical cost

• Fees for filing a reply, if any, are set by each state's RERA regulations, and differ from state to state.
• The advocate's fee is quoted by the advocate after reading the complaint and the file, before you pay anything. It varies with the state, the amount claimed and the number of hearings. eMunshi does not set it.
• On appeal, the deposit under Section 43(5) is a large sum to plan for — at least 30% of the penalty, or the full amount payable to the buyer.

What the advocate does

• Reads the complaint against the agreement, the payment record and the project file.
• Tells you which claims to contest and which to settle, and what an adverse order could cost.
• Drafts the reply, with the documents in order, and files it on time.
• Appears at the hearings and answers the buyer's case.
• Negotiates a settlement where one makes sense.
• Advises on an appeal, including the deposit, and handles it.

The self-serve document that comes before it

There is none. A reply to a RERA complaint is filed in a case already pending, and should be prepared by the advocate who will appear at the hearings. If you want a first view before choosing one, a 30-minute call with an independent advocate from our panel starts at ₹999.