Complaint can be filed against subvention scheme violation under RERA


Status as on- 02/11/2021


In the present scenario, there are several proposals made to the homebuyers and one of them is to “Buy now, pay later” is one of the most common financial schemes advertised and offered by real estate developers to attract customers to purchase their properties. However, in recent time, a large number of customers who fell victim to this scam, also known as a Subvention Scheme, have been trapped in a long legal battle with the builder to recover their money or take possession of the property.


A subvention scheme is a contractual relationship in which the home buyer pays a percent of the overall property value while making a booking of the flat/unit. This includes registration costs, stamp duty, and GST, along with other things. The bank or financial institute pays the remaining amount of the property/unit at various stages of construction after the initial payment or a number of payments, making it a construction-linked plan. Once a certain amount of payment is done, the home buyer pays the remaining amount along with the bank equally at the time of possession. The cost of interest is borne by the builder till the possession and the home buyer can repay the amount to the bank in EMIs later.

As per the Real Estate (Regulation and Development) Act (RERA), complaints can be registered under Section 31 of the Act.


The complaint relating to the subvention scheme can be filled on the following grounds:

  1. When there is default made by the builder in paying the EMI’s as promised by the builder at the time of booking of the flat/unit due to which the home buyer had to suffer the loss in terms of the financial capability.
  2. When the builder has denied to buy back the flat/unitas per the terms and conditions of the buy back agreement between both the builder and the home buyer. In case the intimation about the exercise of buy back was made by the home buyer in 6 months prior to the termination of the buy back.
  3. In case where the intimation was made by the home buyer to the builder as per the conditions required and simultaneously acceptance was made by the builder but the builder neither initiated the process nor the refund is made.
  4. When the builder has denied to cancel the flat and even denied to handover the possession or the allotment of the flat/unit.


In cases of violation of the subvention scheme by the builder, the RERA Authority has the power to decide and dispose of the complaints. RERA is the best and most expeditious remedy for homebuyers to get justice from the builder when they violate the subvention scheme and delays the possession of the property.


Disclaimer- The above article is based on the personal interpretation of the related orders and laws. The readers are expected to take expert opinion before relying upon the article. For more information, please contact us at

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