Harmonizing Dispute Resolution In Indian Real Estate: A Critical Analysis Of The Interface Between RERA, Transfer Of Property Act, And Arbitration Law With Comparative Insights And Proposals For An In
- IJLLR Journal
- Aug 8, 2025
- 2 min read
Jagannath Prasad, BBA.LLB. (Hons.), Jindal Global Law School, O.P. Jindal Global University, Sonipat
ABSTRACT
India's real estate sector faces critical challenges in dispute resolution due to fragmented legal frameworks governing property transactions. This research undertakes a comprehensive critical analysis of the jurisdictional conflicts between the Real Estate (Regulation and Development) Act, 2016 (RERA), the Transfer of Property Act, 1882, and the Arbitration and Conciliation Act, 1996, which collectively create an incoherent dispute resolution ecosystem that undermines stakeholder confidence and economic efficiency.
The study employs doctrinal analysis supplemented by comparative jurisprudential examination to investigate the systemic deficiencies in India's real estate dispute resolution landscape. Through critical evaluation of Supreme Court jurisprudence, particularly the transformative impact of Vidya Drolia v. Durga Trading Corporation and its four-fold arbitrability test, this research examines how the expansion of property dispute arbitrability intersects with RERA's consumer protection mandates. The analysis reveals significant High Court divergences, with the Bombay High Court adopting categorical non-arbitrability for RERA disputes while the Gauhati High Court permits concurrent jurisdiction, creating systematic forum shopping that increases transaction costs and resolution timelines.
Comparative analysis of successful international frameworks, particularly Singapore's SIAC-centric model and the United Kingdom's integrated property arbitration system, demonstrates that harmonized statutory frameworks can achieve efficient dispute resolution while preserving consumer protection objectives. Singapore's institutional arbitration resolves construction disputes within twelve months compared to India's average 7.5- year litigation timeline, highlighting the efficiency gains achievable through coordinated legal frameworks.
The research identifies three critical challenges undermining the current system: jurisdictional conflicts fostering systematic forum shopping, implementation deficiencies including inadequate institutional capacity and procedural inconsistencies across states, and differential stakeholder impacts that exacerbate power imbalances between developers and homebuyers.
This study proposes a comprehensive reform framework centered on three interconnected pillars: enactment of a Real Estate Dispute Resolution (Harmonization) Act establishing clear jurisdictional demarcation principles, creation of specialized institutional infrastructure through a Real Estate Arbitration Council (REAC) with sector-specific expertise, and implementation of multi-tier dispute resolution systems incorporating technology-enabled platforms for high-volume disputes. The proposed framework integrates emergency arbitration, expedited procedures for residential disputes, and enhanced conciliation mechanisms while preserving RERA's regulatory oversight functions.
The reform roadmap recommends phased implementation beginning with pilot programs in Maharashtra, Delhi, and Karnataka, followed by national expansion with standardized training protocols and technology integration. Expected benefits include reduction of dispute resolution timelines from eighteen months to six-nine months, cost reduction of 30-40% compared to traditional litigation, and enhanced investor confidence supporting foreign investment attraction in real estate and infrastructure development.
This research contributes to academic discourse on harmonizing statutory consumer protection with commercial dispute resolution mechanisms while providing practical policy recommendations for establishing India as a preferred jurisdiction for efficient, accessible, and enforceable real estate dispute resolution. The proposed integrated legal framework offers a template for similar reforms in other sectors characterized by complex regulatory-contractual interfaces, advancing India's broader objectives of becoming a global arbitration hub while maintaining robust consumer protection standards.
Keywords: Real estate arbitration, RERA jurisdiction, property dispute resolution, arbitrability, forum shopping, consumer protection, institutional arbitration, multi-tier dispute resolution, legal harmonization, comparative arbitration law, construction disputes, homebuyer rights, regulatory framework integration, alternative dispute resolution.
