Comparative Analysis of Consumer Protection Act, 1986 and Real Estate Regulation Act, 2016—For Home Buyers (Volume 1): (Based on Amrapali Group Real Estate Scam)

Abstract

Real Estate is one of the most important and crucial sectors in any economy across the world not only India. In India, there was no proper regulatory body to maintain proper code of conduct, which was essential, and due to this, there were many real estate scams in India, and it created chaos in this sector. The most recent scam done is the famous Amrapali case, which shook the whole nation. Real estate fraud is not a new concept, it started way back in 90s, as there was no proper regulatory authority to provide proper punishment to the real estate developers who were involved in these scams. Due to limited legislation in this sector, the buyers had no option but to approach the NCDRC (National Consumer Dispute Redressal Commission). Due to limited powers, they were unable to provide necessary relief relating to Real Estate frauds. The legislative intent of Consumer Protection Act, 1986 aimed at protecting the interest of consumer (overall protection) and it was not enacted to deal with real estate frauds whereas RERA is specially made to deal with real estate disputes, frauds etc. The legislative intent behind RERA is only to protect the homebuyers from the malice intent of promoter, builder, real estate agent, etc. This research topic is a comparative study between Consumer Protection Act, 1986 and RERA (Real Estate Regulation Act, 2016) with regard to allotment of flats and other commercial places. This research describes the benefits of RERA over Consumer Protection Act if a buyer confronted or is confronting a problem with the property developer. Both the regulatory authorities under this act have been described in detail along with the power and functions for the same and also the jurisdiction is discussed in brief. RERA is far better than Consumer Protection Act, 1986 in many ways and it has been discussed in detail.