The Apartment Ownership Puzzle: Rights of Flat Buyers vs Builders
Synopsis
Buying an apartment in India is often more than just a financial transaction – it is a deeply personal milestone. However, this milestone frequently turns into a prolonged struggle when flat buyers face issues like delayed possession, misleading advertisements, non-compliance with promised amenities, or arbitrary changes in building plans. Builders, on the other hand, cite challenges such as regulatory hurdles, shortage of raw materials, or unforeseen market conditions to justify delays. This conflict between the rights of flat buyers and obligations of builders has given rise to a complex legal puzzle.
To address this, India introduced the Real Estate (Regulation and Development) Act, 2016 (RERA), while traditional civil laws continue to supplement the framework. Together, they aim to balance fairness and accountability in real estate transactions. This blog explores the rights of buyers under RERA.
RERA: A Game-Changer for Flat Buyers
The RERA, 2016 was enacted to bring transparency, efficiency, and accountability to India’s real estate sector. It empowers homebuyers, standardises practices, and places stringent duties on builders. Some of the key buyer-friendly provisions include:
| Section | Provision | Explanation |
| Section 3 & 4 | Mandatory registration of projects with RERA before any advertisement, sale, or booking. | Prevents fraudulent/unapproved projects from entering the market. |
| Section 11(4)(a) | Obligation of the promoter to adhere strictly to sanctioned plans and specifications. | Builders must deliver what was promised; deviations without consent are violations. |
| Section 12 | Right to compensation if misled by false advertisement. | Buyers can claim damages if they purchased based on misleading brochures or ads. |
| Section 14 | Prohibits alteration of sanctioned plans without buyer consent. | At least two-thirds of buyers must consent before any change is made. |
| Section 18(1) | Refund with interest in case of delay or fundamental defect. | Buyers can demand refund with interest or opt to stay with compensation. |
| Section 19 | Recognises buyer rights to information, possession, and refunds. | Ensures buyers can access project details, claim timely delivery, or refunds. |
Through these provisions, RERA tilts the balance in favour of buyers, ensuring builders cannot exploit their dominant position
Civil Law and Flat Buyer Remedies
While RERA is a special law, buyers also enjoy parallel remedies under civil law and consumer protection statutes. These can be invoked simultaneously or when RERA’s jurisdiction does not apply (for example, projects exempt under Section 3(2) of RERA).
| Act & Section | Provision | Buyer’s Remedy |
| Consumer Protection Act, 2019 (Sec. 2(6) & 35) | Defines flat buyers as “consumers” and enables complaints against unfair trade practices, possession delays, or service deficiencies. | Consumer rights, complaints |
| Indian Contract Act, 1872 (Sec. 73 & 74) | Provides damages or compensation when a builder breaches the contract. | Damages, compensation |
| Transfer of Property Act, 1882 (Sec. 54 & 55) | Governs the sale/transfer of property and prescribes obligations of sellers (builders). | Ownership, seller duties |
| Specific Relief Act, 1963 (Sec. 14 & 16) | Allows courts to compel specific performance, directing builders to complete promised obligations. | Specific performance, enforcement |
This dual framework – RERA and civil remedies, ensures buyers have both specialised and general legal safeguards.
Dream Homes or Empty Promises? The Landmark Amrapali Ruling under RERA
Case: Bikram Chatterji & Ors. v. Union of India & Ors. (Amrapali Group Case), 2019 SCC Online SC 873
This case is a landmark in RERA jurisprudence, especially regarding delayed possession and builder misconduct.
| Aspect | Details |
| Facts | Thousands of homebuyers invested in Amrapali projects, but the builder failed to deliver possession, diverted funds, and violated RERA obligations. Buyers faced EMIs and rent without possession of flats. |
| Summary of Arguments | Buyers argued that Amrapali misused their funds, failed to register projects properly under RERA, and caused huge financial loss. The builder argued financial distress and regulatory delays, claiming inability to complete projects. |
| Issues Raised | 1. Whether Amrapali violated RERA obligations by diverting funds. 2. Whether homebuyers are entitled to protection against builder fraud. 3. What measures should be taken to secure buyers’ rights and complete stalled projects. |
| Judgment | The Supreme Court cancelled Amrapali’s registration under RERA, held the builder guilty of fraud, and directed NBCC (a government agency) to complete pending projects. It recognised buyers as rightful claimants and strengthened RERA’s role in protecting them. |
This case is often called the “Amrapali Case”, and it’s frequently cited by courts and RERA tribunals when discussing large-scale builder defaults and homebuyer protections.
The Builder’s Perspective
It is important to note that builders are not always at fault. Delays can arise from:
• Regulatory approvals – Projects often get stuck due to prolonged government clearances.
• Force majeure events – Natural disasters, pandemics, or strikes may disrupt construction.
• Market fluctuations – Economic downturns can affect material availability and project financing.
RERA recognises some of these challenges by allowing limited exemptions for “force majeure.” However, courts have often scrutinised builders’ claims carefully to prevent misuse.
The Apartment Ownership Puzzle
Despite the statutory safeguards, the ownership puzzle continues. Flat buyers frequently face questions like:
• Who is responsible if possession is delayed beyond the agreed date?
• Can a builder alter project specifications mid-way?
• Do buyers have to continue paying EMIs if the project is stalled?
• What remedies are available when RERA orders are not enforced effectively?
The answer lies in the combined application of RERA provisions and civil law remedies. While RERA offers swift, sector-specific adjudication, civil law ensures long-term enforceability and broader contractual justice.
Challenges in Enforcement
While the legal framework is strong on paper, practical hurdles persist:
• Delays in RERA orders – Even after rulings in favour of buyers, enforcement is often slow.
• Overlapping jurisdictions – Buyers must choose between RERA, consumer courts, and civil courts, leading to confusion.
• Builder insolvency – Many builders declare bankruptcy, leaving buyers with limited relief.
• Awareness gaps – Buyers are not always aware of their rights under RERA and civil law.
Addressing these gaps requires both policy-level reforms and active legal representation.
Beyond Delays and Disputes: The Future of Apartment Ownership in India
The tug-of-war between flat buyers and builders is no longer a silent struggle hidden behind glossy brochures and hollow promises. With RERA and civil law working in tandem, and landmark rulings like Pioneer Urban and the Amrapali Case setting the tone, the balance has shifted decisively in favour of buyers. The message is loud but subtle: builders can no longer hide behind excuses, and contracts are no longer a one-way street.
The future of apartment ownership in India lies in accountability, transparency, and timely delivery – where legal safeguards act as the cement holding the dream of homeownership together. Yet, the journey is ongoing. As disputes grow more complex, the role of law firms and legal experts will be crucial in ensuring that homebuyers don’t just buy apartments, but also buy peace of mind.
