Empirical Analysis of Real Estate Disputes | Journal of Legal Affairs and Dispute Resolution in Engineering and Construction | Vol 15, No 1

AbstractDisputes in the real estate sector are unavoidable and are considered the most crucial aspect in the timely completion of real estate projects. There are numerous causes of disputes arising in the real estate sector leading to delays in projects. A proper complaint system was unaccounted for until 2016, when the Indian government formulated a framework to secure the sector into the legal and regulatory structure. The Real Estate Regulatory Authority (RERA) enforces the Real Estate (Regulation and Development) Act 2016 (RERA Act), which has brought about positive reform in the unorganized sector in the interest of the allottees and the promoters. This study attempts to identify and categorize the disputes concerning real estate projects registered with RERA. A brief discussion is included on the dispute resolution technique adopted by RERA. A mathematical model using logistic regression analysis is formulated and adopted to estimate the factors causing disputes leading to project delay. Sensitivity and robustness analyses of the model outcomes is presented. The disputes are analyzed based on 70 judgments collected from Gujarat State, India. The findings indicate that the significant dispute is a result of the documentation lapses among the stakeholders. A competent grievance redressal mechanism has been established after the enactment of the RERA Act, with the purpose of resolving conflicts in the sector as quickly as possible. Analysis of the model implies that the project cost is the primary factor responsible for the delay. Mixed developments of residential and commercial projects are more delayed than individual residential and commercial projects. Causes of disputes identified by this study can be focused on while amending the act, and all stakeholders must address them to avoid any future occurrence of disputes.



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