Arbitration Act vs. Rera Act- Applicability Of Dispute Redressal Mechanism In Ongoing Pre-Rera Projects.

The Maharashtra Real Estate Regulatory Authority ("MahaRERA") has settled the question of applicability of the dispute redressal mechanism between Real Estate Regulation and Development Act, 2016 ("RERA Act") and the Arbitration and Conciliation Act, 1996 ("Arbitration Act") in its recent order passed in Ayyaz Khan and Saba Khan vs. RERA Realtors Pvt Ltd¹ and others.

Prior to the enactment of the RERA Act and establishment of MahaRERA as a specialised forum, the dispute and grievance redressal mechanism for real estate development was governed by general legislations such as the Indian Contract Act, 1872, Specific Relief Act, 1963, Arbitration Act and the Consumer Protection Act, 1986 (prior to repeal). With the onset of the RERA Act, the RERA Act and the circulars issued by the authorities thereunder have laid down specific provisions and procedures to streamline the different aspects of the development of projects, including redressal of disputes and grievances