Dispute Resolution In Real Estate Under RERA: A Critical Analysis Of Arbitration And Conciliation With Focus On Challenges And Reforms
- IJLLR Journal
- Jun 12
- 2 min read
Kapuganti Bharath, Symbiosis Law School, Pune
ABSTRACT
The Indian real estate sector, a significant economic driver, faces prevalent disputes due to issues like project delays and power imbalances favoring developers. The Real Estate (Regulation and Development) Act, 2016 (RERA) was enacted to address this by enhancing transparency and establishing dispute resolution mechanisms, including arbitration and conciliation. However, challenges in the implementation of these alternative dispute resolution (ADR) processes under RERA persist. This study critically analyzed the efficacy of arbitration and conciliation within the RERA framework from the homebuyer's perspective.
This research employed a qualitative analysis based on a review of statutory provisions of RERA and the Arbitration and Conciliation Act, 1996, relevant judicial precedents from Supreme Court and High Court cases, and existing reports and comparative insights into dispute resolution practices. The analysis focused on the systemic and procedural aspects of arbitration and conciliation under RERA as applied to real estate disputes between homebuyers and developers across various Indian states.
The analysis revealed significant challenges, including jurisdictional conflicts between RERA and other laws like the Arbitration and Conciliation Act, creating confusion regarding the appropriate forum. Arbitration processes often presented inequities, disadvantages for homebuyers due to costs, and power imbalances. Conciliation mechanisms were found to lack standardization across states, diminishing predictability. Structural inefficiencies, resource shortages, delays, and limited awareness among homebuyers also hampered effective dispute resolution under RERA.
These findings indicate that, despite RERA's aims, the current implementation of arbitration and conciliation often falls short of providing accessible, efficient, and fair outcomes for homebuyers. Comprehensive reforms are essential, including harmonizing laws, standardizing procedures, enhancing institutional capacity, increasing homebuyer awareness, and ensuring robust enforcement of ADR outcomes. Strengthening these mechanisms is crucial for RERA to effectively fulfill its consumer protection mandate in the real estate sector.
