Real Estate Disputes In India: Legal Gaps And Challenges
- IJLLR Journal
- Mar 14
- 1 min read
Neha Jagatap, LLM (Intellectual Property and Trade Law), School of Law, Christ (deemed to be University) Bengaluru
Introduction
According to Indian economist Amartya Sen, “The capability of individuals to achieve well-being depends significantly on the infrastructure available to them.” Sen highlights that infrastructure is foundational to a nation’s growth, human development, and overall prosperity. The real estate sector’s role in India is to support development and overall prosperity. In India, the real estate sector’s role in supporting development is substantial, which makes effective regulation essential. The Indian constitution permits both central and state governments to legislate on real estate under the concurrent list, where the central act typically serves as a model for state legislation. The structure aims to create unified standards while allowing for regional flexibility.
In 2008, a legislative framework for real estate regulation was initially prepared but faced delays due to various challenges. It was ultimately introduced in 2014. After extensive consultations with stakeholders, the Real Estate (Regulation and Development) Act (RERA) was passed in 2016. RERA is designed to reshape India's real estate landscape, addressing critical issues such as project delays, poor construction quality, and contract breaches. By involving all parties in a transparent decision-making process, RERA aims to ensure accountability across the sector.
Before RERA, the real estate sector in India faced numerous irregularities. Buyers frequently encountered malpractice from builders, who exploited legal loopholes, diverted funds, and lacked accountability. Even after completing payments, homebuyers often faced project delays as developers inserted one-sided clauses into agreements, imposed hidden fees, and manipulated terms like “super built-up areas” to overstate usable space. Real estate agents,
