RERA: Does a Complainant Retain Standing After Conveyance Deed Execution?

In the complex world of real estate in India, buyers often face delays, disputes, and unfulfilled promises from developers. One critical milestone is the execution of the conveyance deed under the Real Estate (Regulation and Development) Act, 2016 (RERA). But what happens once this deed is signed? Can the complainant still pursue legal remedies? This blog dives deep into the question: Complainant is Sustainable in the Eyes of Law after the Conveyance Deed under the RERA Act.

We'll analyze key legal principles, judicial precedents, and developer obligations to clarify when a complainant's claims remain viable. Note: This is general information based on precedents and statutes; consult a legal professional for advice specific to your situation.

Understanding the Core Issue: Conveyance Deed Under RERA

The conveyance deed transfers legal title of the property (including common areas) from the promoter to the allottee or society. Section 17 of RERA mandates promoters to execute this registered conveyance deed within timelines dictated by local laws—or within three months of the occupancy certificate if no local law applies. Complaint No. RAJ-RERA-C-2020-3634 Bhanwar Singh Versus One Realty Group - Real Estate Regulatory Authority Failure invites complaints for compensation under Section 18.

However, execution doesn't always end disputes. Buyers may still claim for delays, deficiencies, or breaches. The sustainability of the complainant's position hinges on factors like possession, agreement terms, and ongoing issues. SIDDHARTHA DE SIKDAR VS RAMESH CHANDRA BASAK - Consumer (2015)

Loss of Consumer Status: When Does It Happen?

A pivotal question is whether taking possession (and conveyance) strips the complainant of consumer status under the Consumer Protection Act.

• Key Principle: Once possession is handed over without preconditions, the complainant typically loses consumer status for certain claims. Courts have ruled that invoking consumer forums post-possession may not hold if no ongoing deficiency exists. SIDDHARTHA DE SIKDAR VS RAMESH CHANDRA BASAK - Consumer (2015)Harpal Arya VS Housing Board Haryana, Estate Manager - Consumer (2016)

Yet, this isn't absolute. If the conveyance deed is flawed—executed under duress or not per agreement terms—the complainant may sustain claims. Rakesh Tirath VS Delhi Development Authority - Consumer (2021)

Developer Obligations and Continuous Cause of Action

Developers bear strict duties under RERA and agreements:

• Timely Execution: Promoters must execute the deed per contract and law. Delays create a continuous cause of action, allowing complaints even post-possession. Regional Provident Fund Commissioner VS Nathilal M. Kushwaha - Consumer (2018)Satish Buba Shetty VS Inspector General of Registration and Collector of Stamps - Bombay (2024)

• RERA Mandates: Section 17 requires conveyance within four months of society registration or 30 days post-completion certificate (absent local laws). Non-compliance leads to penalties and directives. Flagship Infrastructure Ltd. Vs Flagship Infrastructure Ltd. - BombayFlagship Infrastructure Ltd. Vs The Competent Authority - BombayFlagship Infrastructure Ltd Vs The Competent Authority - Bombay

From precedents:

Direct the respondent to make the conveyance deed in favour of the complainant. Ramprastha Promoters And Developers Pvt. Ltd. VS Union Of India - 2022 Supreme(P&H) 4 - 2022 0 Supreme(P&H) 4

Societies and allottees hold a statutorily vested substantive right to conveyance under MOFA/RERA, not just procedural. Flagship Infrastructure Ltd. Vs Flagship Infrastructure Ltd. - Bombay

RERA Remedies Post-Conveyance: Compensation and Beyond

Even after execution, claims persist for prior breaches:

• Compensation Rights: Allottees are entitled under Section 18(3) for delays. In one case: RERAY® ntitled to be compensated under Section 18(3) of the RERA Act. RAJ-RERA-C-O-2022-5250 Varun Sharda Vs. Suncity Projects Pvt. Ltd. - Real Estate Regulatory Authority Post-possession and conveyance, claims shift to damages for losses per the sale agreement. Complaint No. RAJ-RERA-C-2021-4662 Gopal Lal Dhamani Versus Suncity Projects Pvt. Ltd and four others - Real Estate Regulatory Authority

Having obtained possession of the allotted flat and having executed the conveyance deed, what, at best, the complainant can possibly claim under the RERA Act is compensation for any loss or damages... Complaint No. RAJ-RERA-C-2021-4662 Gopal Lal Dhamani Versus Suncity Projects Pvt. Ltd and four others - Real Estate Regulatory Authority

• Joint Names Issue: Execution in joint names doesn't bar single-filer complaints if rights are established. RAJ-RERA-C-O-2022-5250 Varun Sharda Vs. Suncity Projects Pvt. Ltd. - Real Estate Regulatory Authority

• Ongoing Claims: If no full benefits (e.g., occupancy certificate) are received, grounds remain. Vaibhav Development Corporation VS Suryodaya Co-Operative Housing Society Limited - Consumer (2016)STATE OF M. P. VS SRF LTD. - Madhya Pradesh (2019)

Local laws influence timelines, emphasizing promoter accountability. Flagship Infrastructure Ltd. Vs Flagship Infrastructure Ltd. - Bombay

Judicial Precedents: Strengthening Complainant Standing

Courts consistently uphold allottee rights:

• Enforceability: Builders must deliver possession and execute conveyance. Of course, the complainant is also entitled to execution of the requisite conveyance deed in his favour. Papiya Roy Barman @ Papia Roy Burman VS Swapan Kumar Aich - Consumer

• Post-Conveyance Validity: Deeds per Section 17 solidify ownership, enabling further claims for delays. RAJ-RERA-C-O-2022-5250 Varun Sharda Vs. Suncity Projects Pvt. Ltd. - Real Estate Regulatory AuthorityU. P. Avas Evam Vikas Parishad, Lucknow VS Dhruv Kumar Chaturvedi - Allahabad (2023)

• Multiple Cases: Rulings in Jaipur RERA (e.g., RAJ/RERA/C-2019-2774) affirm complainant VIS rights against non-compliant developers. Complaint No. RAJ-RERA-C-2019-2771 Pawan Kukreja Versus AVS Contractors Pvt. Ltd. - Real Estate Regulatory AuthorityComplaint No. RAJ-RERA-C-2020-3465 Vivek Kumar Gupta Versus AVS Contractors Pvt. Ltd. - Real Estate Regulatory Authority

Landowner liability is limited; promoters primarily handle conveyance. POOJA CONSTRUCTIONS VS SECRETARY KERALA URANMA DEVASWOM BOARD - Kerala

Non-compliance triggers compensation, even post-execution. Ranjeet Kumar Choudhary VS State of Bihar - Patna (2023)

Practical Recommendations for Complainants

To protect rights:

1. Document Everything: Retain agreements, communications, and timelines.
2. File Promptly: Approach RERA authorities or consumer forums for delays. RAMESH R. TRIVEDI VS AMBAR TOWER CO-OPERATIVE HOUSING SOCIETY LTD. - Consumer (1997)Sudesh Gupta VS HUDA - Consumer (2020)
3. Seek Compensation: Claim interest on delays, even after possession. U. P. Avas Evam Vikas Parishad, Lucknow VS Dhruv Kumar Chaturvedi - Allahabad (2023)
4. Verify Deed: Ensure it matches terms; challenge if defective.

Conclusion: Yes, Sustainability Persists in Many Cases

Generally, a complainant remains sustainable in the eyes of law post-conveyance deed under RERA, especially for delay compensation, service deficiencies, or non-compliance. While possession may limit some consumer claims, RERA provides robust remedies. Courts affirm: execution confers ownership but doesn't erase prior breaches. MAHARASHTRA HOUSING AND AREA DEVELOPMENT AUTHORITY VS MADHUKAR OMKAR TARHALE - Consumer (2013)STATE OF M. P. VS SRF LTD. - Madhya Pradesh (2019)

Key Takeaways:- Conveyance is a substantive right; delays actionable. Flagship Infrastructure Ltd. Vs Flagship Infrastructure Ltd. - Bombay- Post-execution focus: damages under Section 18.- Always document and act swiftly.

Stay informed on RERA updates to safeguard your investment. For personalized guidance, consult a real estate lawyer.

References

RAMESH R. TRIVEDI VS AMBAR TOWER CO-OPERATIVE HOUSING SOCIETY LTD. - Consumer (1997)MAHARASHTRA HOUSING AND AREA DEVELOPMENT AUTHORITY VS MADHUKAR OMKAR TARHALE - Consumer (2013)STATE OF M. P. VS SRF LTD. - Madhya Pradesh (2019)Sudesh Gupta VS HUDA - Consumer (2020)SIDDHARTHA DE SIKDAR VS RAMESH CHANDRA BASAK - Consumer (2015)Rakesh Tirath VS Delhi Development Authority - Consumer (2021)U. P. Avas Evam Vikas Parishad, Lucknow VS Dhruv Kumar Chaturvedi - Allahabad (2023)Vaibhav Development Corporation VS Suryodaya Co-Operative Housing Society Limited - Consumer (2016)Ranjeet Kumar Choudhary VS State of Bihar - Patna (2023)Flagship Infrastructure Ltd. Vs Flagship Infrastructure Ltd. - BombayFlagship Infrastructure Ltd. Vs The Competent Authority - BombayFlagship Infrastructure Ltd Vs The Competent Authority - BombayRAJ-RERA-C-O-2022-5250 Varun Sharda Vs. Suncity Projects Pvt. Ltd. - Real Estate Regulatory AuthorityComplaint No. RAJ-RERA-C-2020-3634 Bhanwar Singh Versus One Realty Group - Real Estate Regulatory AuthorityComplaint No. RAJ-RERA-C-2021-4662 Gopal Lal Dhamani Versus Suncity Projects Pvt. Ltd and four others - Real Estate Regulatory AuthorityComplaint No. RAJ-RERA-C-2019-2771 Pawan Kukreja Versus AVS Contractors Pvt. Ltd. - Real Estate Regulatory AuthorityComplaint No. RAJ-RERA-C-2020-3465 Vivek Kumar Gupta Versus AVS Contractors Pvt. Ltd. - Real Estate Regulatory AuthorityRamprastha Promoters And Developers Pvt. Ltd. VS Union Of India - 2022 Supreme(P&H) 4 - 2022 0 Supreme(P&H) 4Papiya Roy Barman @ Papia Roy Burman VS Swapan Kumar Aich - Consumer

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