RERA: A group of residents cannot file a complaint against a builder without registration.

The Gujarat Real Estate Appellate Tribunal stated in a significant order that the group must, first be registered association if a group of residents wants to complain against a developer with the Gujarat Real Estate Regulatory Authority (RERA).

The residents or allottees of houses can lodge complaints either individually or by means of a lawyer, without registering an association. For the residents of the newly constructed housing scheme, the Court’s judgment has been an admonition that they should insist that the builder to establish and register the association at the earliest opportunity so that they can formally complain to RERA about the project.

In this scenario, some 20 residential scheme allottees in Vadodara had formed an association — Crystal Yaghnapurush Residential and Owners’ Association. It wasn’t a registered association. They filed a complaint against the scheme builder Manish Patel about a project that had not been accomplished and that the clubhouse and various facilities have not been completed.

On 5 November, RERA issued an interim order asking the developer to increase the workforce on the site and complete the project in two months. RERA notified the builder to complete the project as early as possible or to pay compensation to the residents.

The builder opposed this order and his attorney, Vishal Dave, claimed that this was not a registered association.

The promoter should allow the formation of an association or a cooperative society of the allottees or of a federation of the same under Section 11(4)(e) of the Real Estate (Regulation and Development) Act 2016. RERA cannot accept a group complaint without a registered association.

The court acknowledged the claim and confirmed that the case could not be continued. The tribunal also stated that due to technical reasons the complaint must not be allowed to fail, that allowed the group time to modify the complaint till 31 December by allowing each member to make a complaint in his or her individual capacity.

Source: Times of India