What are the legal remedies available to the homebuyers/ allottees against builder?

The legal recourse available to aggrieved homebuyers are:

  1. File an application under Real Estate (Regulation and Development) Act, 2016 (RERA).
  2. File a consumer complaint under Consumer Protection Act, 2019.
  3. File an application to initiate the Corporate Insolvency Resolution Process (CIRP) against the builder company, under Section 7 of Insolvency and Bankruptcy Code, 2016 (IBC).
  4. File a case in a civil court. However, the proceedings in a civil court are time consuming and involves technicalities of law, not understood by common man.
  5. In cases of fraud, criminal misrepresentation etc., the buyer can also initiate criminal proceedings.

Remedies that are given to allottees of flats/apartments are concurrent remedies, the allottees of flats/apartments can avail the remedies under the Consumer Protection Act, 2019, RERA as well as the triggering of the insolvency under IBC. [Refer Pioneer Urban Land and Infrastructure Limited & Anr. vs. Union of India & Ors., (2019) 8 SCC 416]

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