Consumer commission complaints by homebuyers in India

The rule

• Consumer: a person who “hires or avails of any service for a consideration which has been paid or promised”, but not for a commercial purpose (s. 2(7)(ii)).
• Service: “service of any description”, expressly including “housing construction” (s. 2(42)).
• Deficiency: “any fault, imperfection, shortcoming or inadequacy in the quality, nature and manner of performance” required by law or undertaken under a contract (s. 2(11)). A late flat or missing amenities is argued as a deficiency.
• Who can file: the consumer, a recognised consumer association, one or more consumers on behalf of many with the same interest (with the commission’s permission), or the government (s. 35(1)). Filing “may be filed electronically” (proviso to s. 35(1)).
• Where: a District Commission where the builder resides or has a branch office, where the cause of action arises, or where the complainant resides or works (s. 34(2)).

Which commission hears the case

The Act set the limits at ₹1 crore and ₹10 crore, but each limit can be changed by rule (provisos to ss. 34(1), 47(1)(a)(i), 58(1)(a)(i)). The 2021 Rules, G.S.R. 912(E), now apply:

The test is the value paid as consideration, the words of the Rules. If you have paid ₹45 lakh on a flat priced ₹80 lakh, read the Rules with your lawyer before choosing: the wording points to the amount paid, but Payotte did not read a ruling that settles it for part-paid flats.

Step by step

1. Write to the builder with what you ask for, and keep proof of delivery.
2. Check the deadline. Two years from the date the cause of action arose; a later complaint needs a reasoned order condoning the delay (s. 69). For a delayed flat, the cause of action is usually argued from the promised possession date.
3. Pick the commission from the table above, and the district under s. 34(2).
4. File. The Ministry of Consumer Affairs runs the e-Jagriti platform for consumer commissions. The filing fee depends on the value of the claim; Payotte did not read the current fee table, so check it on the commission’s site before paying.
5. Attach the agreement, receipts, bank statements and correspondence.

Appeals

Late appeals can be admitted for “sufficient cause”. An order not appealed is final (s. 68).

RERA authority or consumer commission?

• The RERA Act keeps other remedies open. Section 18(1) gives the refund right “without prejudice to any other remedy available”, and section 88 makes the Act additional to other laws. The Consumer Protection Act says the same of itself (s. 100).
• The civil court bar does not name consumer commissions. Section 79 of RERA bars “civil court[s]” from matters the RERA bodies can decide. The UP-RERA FAQ (Q85) reads it this way: “the consumer forums (National, State or District) have not been barred”.
• The Supreme Court’s position. In Imperia Structures Ltd. v. Anil Patni (2020) 10 SCC 783, paragraph 25, the Court described the RERA refund right as “unqualified” and “without prejudice to any other remedy”. On 28 March 2022 it dismissed the builder’s appeals (Civil Appeal No. 1816 of 2022 and Nos. 1899-1906 of 2022) against National Commission judgments that had relied on Imperia in consumer complaints by homebuyers.
• Not both at once. The UP-RERA FAQ (Q86) says an aggrieved person “can only approach one of the two for disputes over the same matter”. A complaint already pending before a consumer forum when RERA began could be withdrawn and filed before the RERA adjudicating officer (proviso to s. 71(1)).

For the RERA route, see RERA complaint and delay compensation.

Which professional to consult

A property lawyer (advocate) enrolled with the State Bar Council can advise which forum fits your facts. This guide is general information, not legal advice. See property lawyers.

Sources and limits

The full text of Imperia Structures (2020) could not be opened on the Supreme Court’s site; Payotte read its paragraph 25 as quoted in the 2022 order. The current complaint fee table was not read.