Builder Delays and RERA Complaints

How can we coordinate with other projects (apartment owners) to share legal costs for a RERA case?

Apartment owners from the same or nearby projects can legally coordinate and share expenses for a RERA case by forming a Joint Action Committee (JAC), Resident Welfare Association (RWA), or Authorized Group Representation, as permitted under the Real Estate (Regulation and Development) Act, 2016. This helps reduce legal costs and strengthens the collective case against the builder.

Apartment owners from the same or nearby projects can legally coordinate and share expenses for a RERA case by forming a Joint Action Committee (JAC), Resident Welfare Association (RWA), or Authorized Group Representation, as permitted under the Real Estate (Regulation and Development) Act, 2016. This helps reduce legal costs and strengthens the collective case against the builder.

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Short Answer

Apartment owners from the same or nearby projects can legally coordinate and share expenses for a RERA case by forming a Joint Action Committee (JAC), Resident Welfare Association (RWA), or Authorized Group Representation, as permitted under the Real Estate (Regulation and Development) Act, 2016. This helps reduce legal costs and strengthens the collective case against the builder.

Detailed Explanation

The RERA Act, 2016 allows multiple allottees (buyers) of the same project or related projects to jointly file a complaint or authorize a representative to act on their behalf. This collective approach is recognized under Section 31(1) of the Act, which states:

“Any aggrieved person may file a complaint individually or jointly with other allottees before the Authority or the adjudicating officer.”

This means that buyers can come together to file a single consolidated complaint, or if they choose to file individually, they can still share legal representation and costs through a mutual agreement.

There are three main ways to coordinate and manage expenses legally:

Form a Joint Action Committee (JAC):

Apartment owners from one or more projects can form a JAC with elected representatives (President, Secretary, Treasurer).

The JAC collects equal contributions from all members to fund lawyer fees, document preparation, and filing costs.

A written resolution or authorization letter from members empowers the JAC to represent everyone in the RERA complaint.

Use an Existing RWA or Cooperative Society:

If an RWA or cooperative housing society is already registered, it can file the RERA complaint on behalf of all members.

The society can collect legal fees transparently through a general body resolution.

Authorized Group Representation:

A group of flat owners can jointly sign a Power of Attorney (PoA) or Letter of Authorization appointing a single lawyer or representative to file and follow up on the case.

This minimizes duplication and ensures consistent representation for all buyers.

Cost Sharing:

Each participant contributes proportionally to:

Lawyer’s professional fees

Filing fees under RERA

Documentation and affidavit costs

Travel or hearing expenses (if any)

Pooling resources ensures that no single buyer bears the entire burden while maximizing collective bargaining power and credibility before RERA.

Real-world Scenarios

Scenario 1: 25 flat buyers from Project A form a Joint Action Committee and contribute ₹2,000 each. The group hires one RERA lawyer and files a single consolidated complaint, saving over 70% in legal costs.

Scenario 2: An RWA representing 80 members passes a general body resolution to initiate a RERA case against the builder for delay and appoints one authorized signatory to act for all.

Scenario 3: Two neighboring projects with the same builder join forces, jointly engaging a legal firm and splitting costs based on the number of participants.

References

Section 31(1) of the Real Estate (Regulation and Development) Act, 2016: Official PDF

Gujarat RERA Authority – Complaint Filing Procedure: https://gujrera.gujarat.gov.in/

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