Landmark Judgements — Cite These in Court
Lucknow Development Authority v. M.K. Gupta (1994) 1 SCC 243
Supreme Court
Housing boards are service providers. Mental agony from builder delay is compensable under consumer law.
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Ghaziabad Development Authority v. Balbir Singh (2004) 5 SCC 65
Supreme Court
Interest @ 12% p.a. on deposited amount awarded for delay in possession, along with compensation for mental agony.
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Pioneer Urban Land v. Govindan Raghavan (2019) 5 SCC 725
Supreme Court
RERA does not bar consumer forum jurisdiction. Buyer can choose either RERA or consumer court.
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Frequently Asked Questions
Should I go to RERA or Consumer Forum? +
You can choose either, but not both simultaneously. Consumer courts can award higher compensation for mental agony (RERA generally awards only interest). Pioneer Urban Land v. Govindan Raghavan (2019) confirmed you have the choice.
What if the builder has filed for insolvency? +
File a claim before the Insolvency Resolution Professional (IRP) under IBC. Consumer courts can still hear complaints and pass orders, but execution may be complex.
What compensation is typically awarded? +
Refund of full amount + 12% p.a. interest from date of each payment + ₹25,000 to ₹2 lakh for mental agony + litigation costs.
What if I want the flat and not a refund? +
You can claim possession + compensation for the delay period. Consumer courts order builders to hand over possession along with compensation.