• Plot area shortfall in RERA-approved project – civil case or RERA? need legal guidance

I purchased a plot in a RERA-approved project about 3 years ago. As per the sale deed and agreement, the plot area is mentioned as 2095 sq. ft. However, after measurement, there is a shortfall of approx. 476 sq. ft.

Despite multiple attempts to resolve the issue amicably, the developer is refusing to cooperate. He has changed both his office and residential addresses and is only reachable by mobile, which he is not responding to.

I have consulted a few lawyers, but I am receiving conflicting advice:

Some suggest filing a civil suit for recovery/compensation.

Others argue that RERA is merely a regulatory body and may not provide effective relief.

I seek guidance from experienced lawyers on the following points:

Is RERA the appropriate forum for a case involving a shortfall in plot area, or should I file a civil suit directly?

Which option is generally faster and more effective in such cases?

If a civil case is filed and the developer does not appear, how does the court proceed (ex parte)?

Does the developer’s change of address and non-cooperation affect the choice of legal remedy?

Are there any limitations I should be aware of, since the purchase was made 3 years ago?

Any practical guidance on the best legal strategy would be highly appreciated.
Asked 1 day ago in Property Law
Religion: Hindu

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6 Answers

Exparte. 
 No it will not affect if he is served. 
3 years is limitation you need to file within 3 yrs or bring your case within 3 yrs

 

Prashant Nayak
Advocate, Mumbai
34752 Answers
252 Consultations

A shortfall of 476 sq. ft. (approx. 22% of your total area) is a substantial breach of the Agreement for Sale. Under the Real Estate (Regulation and Development) Act, 2016, the promoter is obligated to deliver the exact "carpet area" or plot area promised. 

2)Civil suits for "Specific Performance" or "Recovery" often take 10 to 15 years . RERA is a summary procedure meant to resolve disputes within months. 

3)RERA has power 

  • Order a refund for the shortfall area at the current market rate or the rate mentioned in the agreement plus interest.
  • Impose heavy penalties on the developer for non-compliance.

  • Attach the developer's bank accounts or other properties to recover the amount (via the District Collector). 

4)it the notice cannot be served you can request fir substituted service ie by paper publication and obtain ex parte decree if builder dies not appear in court 

5) If you discovered the shortfall recently during a physical measurement or demarcation, you are well within the time limit.Under RERA, the "continuous cause of action" often applies if the possession is deemed "defective."

Ajay Sethi
Advocate, Mumbai
100092 Answers
8174 Consultations

You may simultaneously take up the issue with your State RERA Authority by lodging a written complaint and file a civil suit against the promoters under the Specific Reliefs Act seeking compensation. In consultation with your lawyer, file an IA seeking an injunction restraining the promoters from taking up any realty projects in future till the disposal of the suit.

Swaminathan Neelakantan
Advocate, Coimbatore
3088 Answers
20 Consultations

Under Section 14 and Section 18 of the RERA Act the promoter is bound to deliver the plot strictly as per the sanctioned plan and agreement.

Any defect in area, misrepresentation, or deviation entitles the allottee to refund with interest, or compensation for deficiency. Further, Section 79 bars civil courts from entertaining matters that RERA authorities can decide. Since this is a shortfall in plot area in a RERA-registered project, it squarely falls within RERA jurisdiction.

Moving RERA court is the better option than approaching civil court.

RERA is faster whereas in civil court it may take years.

T Kalaiselvan
Advocate, Vellore
90295 Answers
2513 Consultations

As project is Rera registered, rera will have exclusive jurisdiction 

The jurisdiction of civil court is barred 

Even if the purchase was made 3 years back it does not matter since no limitation is provided for filing a rera complaint 

Rera complaint is a summary remedy and hence it would be faster than a regular civil suit which would require a full blown trial which takes many years 

Developer's change of address has no bearing on the outcome of the matter. The rera complaint is to be uploaded on the rera portal and so the developer will automatically come to know about filing of the complaint 

 

Yusuf Rampurawala
Advocate, Mumbai
7939 Answers
79 Consultations

On the facts stated by you, a complaint relating to shortfall in plot area in a RERA-approved project squarely falls within the jurisdiction of the Real Estate Regulatory Authority. Under the RERA Act, the promoter is bound by the sanctioned plan, agreement for sale and disclosures made to the allottee, and any deficiency in area amounts to a violation and deficiency in service. RERA has the power to direct refund of proportionate consideration, compensation, or other appropriate relief, and such proceedings are generally faster, summary in nature, and less expensive than a regular civil suit. The fact that the project is RERA-registered strengthens your case before the Authority.

A civil suit for recovery or compensation is also legally maintainable, but it is usually time-consuming and involves a full trial with evidence. If the developer does not appear despite proper service, the civil court can proceed ex parte and decide the matter on the basis of your evidence, but even ex parte civil proceedings often take considerable time. Non-cooperation or change of address by the developer does not defeat your remedy; service can be effected through substituted modes if required, both before RERA and the civil court.

As regards limitation, complaints before RERA are generally entertained if filed within a reasonable period, and a delay of three years is usually explainable, especially where the shortfall was discovered later and efforts were made for amicable resolution. For a civil suit, the limitation period for recovery of money or compensation is typically three years from the date the cause of action arose, which may require careful examination of when the shortfall was discovered.

Practically, in cases of area shortfall in a RERA-approved project, approaching RERA is usually the more effective and expeditious first remedy. Depending on the outcome, further remedies remain open in accordance with law.

 

 

 

Yuganshu Sharma
Advocate, Delhi
1175 Answers
5 Consultations

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