Introduction
The Real Estate Regulatory Authority (RERA) has brought a new era of transparency, accountability, and discipline in the Indian real estate sector. With all project-related details now publicly accessible, homebuyers feel more confident when investing in property. However, challenges still arise when builders fail to comply with RERA’s orders — particularly when it comes to refunds or compensation.
So, what can a homebuyer do if a RERA order goes unenforced? This blog explains how to effectively enforce a RERA Recovery Certificate and ensure justice is served.
RERA, under the RERA Act, 2016, empowers homebuyers to file complaints against developers who fail to deliver possession, delay projects, or refuse refunds despite prior commitments. Under Section 31, an allottee can file a complaint before the RERA Authority or the Adjudicating Officer.
If the complaint is found valid, RERA can:
- Direct the builder to refund the full amount with interest
- Order compensation for mental agony and financial losses
- Impose penalties or interest on the defaulting builder
These powers are exercised under Section 38 and Section 71 of the RERA Act.
What Happens After the RERA Order?
Once RERA passes an order in favor of the allottee, the builder is legally bound to comply within 45 days or the time frame mentioned in the order.
If the builder fails to comply, the allottee can file for execution of the RERA order under Section 40 of the RERA Act. This section empowers RERA to recover the amount as arrears of land revenue — a powerful enforcement mechanism under Indian revenue laws.
What is a Recovery Certificate under RERA?
A Recovery Certificate (RC) is issued by RERA to the District Magistrate (DM), directing him to recover the ordered amount from the builder as arrears of land revenue.
But what does “arrears of land revenue” mean?
It refers to a formal legal process governed not by RERA, but by state-specific land revenue laws, such as the U.P. Revenue Code, 2006 in Uttar Pradesh.
Recovery of Arrears of Land Revenue in Uttar Pradesh
Under Section 170 of the U.P. Revenue Code, 2006, the DM can recover dues using one or more of the following methods:
- Arrest and detention of the defaulter (builder)
- Attachment and sale of movable or immovable property
- Attachment of bank accounts or lockers
- Sale or lease of the land or property
- Appointment of a receiver
These tools are meant to pressurize the builder to comply with the RERA order. However, arrest and detention is usually symbolic and rarely enforced beyond 15 days, as per Section 171.
What if the District Magistrate Doesn’t Act?
Despite having the legal authority, sometimes the DM fails to act on the Recovery Certificate. In such cases, the entire effort of the homebuyer goes in vain — unless timely legal steps are taken.
Here’s a step-by-step legal strategy for enforcing the Recovery Certificate:
Step-by-Step Process to Enforce RERA Recovery Certificate
Step 1: Representation to the District Magistrate
File a written representation to the DM, referring to the RC issued by RERA. Clearly mention your grievance and request compliance within 2 weeks.
Step 2: Reminder After 2 Weeks
If the DM does not respond or act, send a reminder letter giving another 2-week deadline for action.
Step 3: Writ Petition Before the High Court
If there is still no compliance after 4 weeks, the allottee can file a Writ Petition under Article 226 of the Constitution of India before the concerned High Court.
In the petition, the allottee can seek a Writ of Mandamus, directing the DM to execute the Recovery Certificate in a time-bound manner.
Important Tip: Courts usually ask whether the petitioner approached the DM before filing the petition. So never skip the representation step.
Conclusion
RERA empowers homebuyers, but its enforcement relies heavily on state machinery like the District Magistrate. When the builder fails to comply with a RERA order, and the DM does not act, legal remedies like a Writ Petition ensure that the rights of the allottee are not ignored.
Knowing the legal process of enforcement, especially how to deal with a non-compliant Recovery Certificate, is crucial for every homebuyer seeking justice.
Need Legal Help?
If you’re struggling with a builder who’s ignoring RERA orders, reach out to Mudra Legal for expert advice and representation. We specialize in builder-buyer disputes and ensure your rights are protected every step of the way.