Short Answer

Individual members cannot collect compensation under RERA if their society hasn't been formalized.

Detailed Explanation

Section 3 of the Gujarat RERA Act states that the Act applies to all ongoing real estate projects where the completion certificate has not been issued. This means that RERA only covers projects that are registered under the Act and have not been completed. If a society hasn't been formalized, it implies that the project is still in the initial stages and not registered under RERA. Therefore, individual members of such a society cannot claim compensation under RERA as the project doesn't fall under its purview.

Furthermore, Rule 6 of the Gujarat RERA Rules outlines the procedure for filing complaints with the Real Estate Regulatory Authority. To file a complaint under RERA, the project must be registered with the Authority, and the complainant must be a member of the society formed for that project. Since a society that hasn't been formalized doesn't meet these criteria, individual members cannot seek compensation through RERA in such cases.

Practical Examples

• Mr. Patel purchased a flat in a building where the society formation process was delayed due to disputes among members. As the society wasn't formalized, he couldn't approach RERA for compensation for project delays.

• Ms. Desai invested in a residential project that faced construction delays, but the society formation was pending. In this scenario, she couldn't seek relief under RERA as the project wasn't registered under the Act.

Reference

• Gujarat RERA Act: https://gujrera.gujarat.gov.in/

• Gujarat RERA Rules: https://gujrera.gujarat.gov.in/