Good news home-buyers and builders — all disputes are likely to be speedily settled in the state from now on. All thanks to the new conciliation cell set up by the Real Estate Regulatory Authority (RERA). As the legal process usually takes a long time, the regulatory body has come up with an alternate dispute resolution mechanism. The initiative has received a thumbs-up both from the builder community and buyers.
Each case will be heard by a committee that comprises two conciliators — representing the promoters and the home-buyers. Three representatives of RERA will also be part of the conciliation committee that will hear grievances and take measures to facilitate amicable resolution of disputes between home-buyers and builders. The conciliators are chosen from organisations such as CREDAI and National Real Estate Development Council as well as home-buyer associations.
On Tuesday, RERA uploaded the circular titled ‘Procedure for K-RERA Conciliation and Dispute Resolution Cell’ on its website.
“This is an out-of-the-court settlement measure. The aim is to provide speedy redressal before referring the dispute to the authority or adjudicating officer. This is intended to avoid both cost and time of litigation to both parties,” Latha Kumari, Secretary of RERA told BM.
How does the process work?
The party initiating the conciliation is required to file an online application. The other party has to covey consent for conciliation within five days. On receipt of the consent, the first party is expected to make payment of non-refundable fees of Rs 500. During the conciliation, the committee will facilitate resolution of disputes between the parties in an informal and amicable manner.
If the parties agree to any settlement, the consent agreement will be drawn, which will be signed by the parties concerned and the conciliators. In case the parties fail to reach an amicable settlement, the conciliation process will stand terminated and the parties concerned will be at liberty to pursue their dispute through the RERA dispute redressal mechanism, where a retired judge will hear the case.
The circular has set a 30-day period to settle the dispute.
Suresh Hari, chairman of CREDAI Bengaluru hailed the move. “About 90% of the disputes could be resolved at the conciliation cell. It also prevents unnecessary legal processes that usually takes much longer time. Karnataka has taken a giant leap that will help both the home-buyers and the builders,” he said.
MS Shankar, secretary of the Forum for People’s Collective Efforts, said the cell could offer speedy settlement of dispute as the legal process takes at least 6 months to one year. “From the date of filing a complaint at RERA, it takes a minimum of three months for the first hearing. With the sudden spike in the number of complaints and several adjournments in each case, it’s impossible for one judge to hear all the cases. In such a scenario, the Cell will be able to solve cases that are simple or petty in nature,” he said.
