Builder Delays and RERA Complaints

In case of group complaints, how is the compensation distributed among members?

In case of group complaints, compensation is distributed among members based on the percentage of the total amount paid by each member towards the property.

In case of group complaints, compensation is distributed among members based on the percentage of the total amount paid by each member towards the property.

Written By: GatePal Analyst

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Short Answer

In case of group complaints, compensation is distributed among members based on the percentage of the total amount paid by each member towards the property.

Detailed Explanation

Rule 18 of the Gujarat RERA Rules states that in case of group complaints, where multiple allottees have similar grievances against the same promoter, the Authority may consolidate such complaints. The compensation amount to be paid by the promoter is distributed among the allottees based on the percentage of the total amount paid by each member towards the property. This ensures that each member receives compensation in proportion to their investment.

For example, if there are 10 allottees who have paid varying amounts towards the property and are collectively entitled to a compensation of Rs. 1,00,000, the distribution will be based on the individual contribution of each member. If one member has paid Rs. 10,000 and another has paid Rs. 20,000, their respective shares of the compensation will be calculated accordingly.

In practice, this distribution process helps in ensuring fairness and equity among the allottees who have suffered due to the actions of the promoter. It provides a transparent mechanism for compensating each member based on their financial stake in the project.

Another scenario could be where a group of allottees file a complaint against the promoter for delayed possession and seek compensation. The Authority, after verifying the claims, may order the promoter to pay a certain amount as compensation, which will then be distributed among the allottees as per their individual contributions towards the property.

Overall, the distribution of compensation among members in case of group complaints under RERA is a crucial aspect that ensures justice and accountability in real estate transactions.

References

  • Gujarat RERA Rules, Rule 18

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