Haryana RERA sets up mediation forum to settle homebuyers dispute with developers

Gurgaon bench of Haryana Real Estate Regulatory Authority (HARERA) has established a mediation forum for conciliation of disputes between the developers and homebuyers.

Alternate Dispute Resolution (ADR) mechanisms like arbitration, mediation, and conciliation are much more private, economical and time-efficient than litigation.

Alternate Dispute Resolution (ADR) mechanisms like arbitration, mediation, and conciliation are much more private, economical and time-efficient than litigation.
“It is prudent that such mechanisms are incorporated in the myriad field of laws, particularly laws dealing with real-estate sector, which has a huge pendency of
cases due to informed homebuyers approaching the real estate regulatory authorities for grievance redressal,” said a spokesperson for HARERA.

Official said that delays in delivery of projects, hike in costs during construction, skewed builder-buyer agreement, and the absence of an effective enforcement
mechanism have increased homebuyer’s trauma and agony over the years and has subsequently resulted in more number of complaints. “This has not only increased the pressure on HARERA authorities but also on our civil courts who are already dealing with the crisis of excess pendency of cases,”

the spokesperson said. The mediation forum of HARERA, Gurugram will provide the parties an option to have a settlement outside the formal authority proceedings. Authority has constituted a panel of mediators, equipped with requisite skills to mediate in a dispute related to real estate projects.

“In case the authority is convinced that a particular complaint case can be resolved through mediation then such references can be made by the authority even without the consent of the parties,” the spokesperson said. To start with, 310 complaints against EMAAR that are pending before the authority have been refereed for the mediation.