What to do if the RERA order is not being complied with

enforcement-of-rera-orders

Recently, we are received a lot of queries regarding the matter that orders passed by State RERA Authority is not being complied with by the party or if we are precise, the builder is not paying the amount ordered by authority. Let’s analyze it legally.

The above issue may be described with following synonyms:

The RERA Authority has directed the builder to execute the builder buyer agreement or sale deed but, the builder not doing the same.

The RERA Authority has directed the builder to give possession along with the interest and compensation for delay in possession but the builder is not paying any interest.

The RERA authority has directed to the buyer for payment of balance amount and takes the possession, however, the buyer is not doing so.
In this article, I’ll be trying to address some of such grievances and try to educate about the above-mentioned issues.

As we all are aware that Real Estate (Regulation and Development) Act, 2016 (hereinafter referred as Act) came into force from 01/05/2017, for among other, addressing the grievances of the aggrieved home buyer, and it is working effectively in almost every State and the authorities have passed number of orders, however, enforcement/execution of order are a prime concern.

Issue 1: What to do if the builder is not complying with the order of RERA Authority?

Solution: If the authority has passed an order in your favour granting you the desired relief, and the builder is not complying with the same then you have to file an application for enforcement of order u/s 40 of the Act, which deals with Recovery of interest or penalty or compensation and enforcement of orders, etc.

“Recovery of interest or penalty or compensation and enforcement of orders, etc.

Sec 40 (1) If a promoter or an allottee or a real estate agent, as the case may be, fails to pay any interest or penalty or compensation imposed on him, by the adjudicating officer or the Regulatory Authority or the Appellate Authority, as the case may be, under this Act or the rules and regulations made thereunder, it shall be recoverable from such promoter or allottee or real estate agent, in such manner as may be prescribed as an arrears of land revenue.

Sec 40 (2) If any adjudicating officer or the Regulatory Authority or the Appellate Tribunal, as the case may be, issues any order or directs any person to do any act, or refrain from doing any act, which it is empowered to do under this Act or the rules or regulations made thereunder, then in case of failure by any person to comply with such order or direction, the same shall be enforced, in such manner as may be prescribed.”

Issue 2: Who can file an application for enforcement of order?

Solution: Any person who has an order directing another party to pay the prescribed amount, but the other party is not complying with the same.

Problem 3: Where to file an application for enforcement of order?

Solution:   As per the mere reading and under of the Act and Rules it is very much evident that the passing authority is having the power to enforce the same. Let me quote the verbatim of Rule 24 of UPRERA Rules for a better understanding.

“24 For the purpose of sub-section (2) of section 40, every order passed by the adjudicating officer, regulatory authority or Appellate Tribunal, as the case may be, under the Act or the rules and regulations made thereunder, shall be enforced by the adjudicating officer, regulatory authority or the Appellate Tribunal in the same manner as if it was a decree or order made by the principal civil court in a suit pending therein and it shall be lawful for the adjudicating officer, regulatory authority or Appellate Tribunal, as the case may be, in the event of its inability to execute the order, send such order to the principal civil court, to execute such order either within the local limits of whose jurisdiction the real estate project is located or in the principal civil court within the local limits of whose jurisdiction the person against whom the order is being issued, actually and voluntarily resides, or carries on business, or personally works for gain.”

Here if we read the rule the basic understanding says that, the power of enforcing of order vests with the authority who has passed an order. This rule is different in every state but the base is same as above that the passing authority is having the enforcement power.

Following Points are to be remembered while filing an enforcement application.

  • The application
  • Legal analysis of facts and the remedy sought.
  • Supporting documents including order copy and grievances
  • A proper format to be followed while filing an application.

Conclusion– For enforcement or execution of RERA authority, you have to approach to the same authority who has passed the order. You are advised to make complete fact and legal analysis. For any clarification, please read to the author at rera@centrik.in

Disclaimer – The above points are based on the personal interpretation. The readers are expected to take expert opinion before placing reliance on it.

Comment

  1. No response from Unnati in reply to their own emails, Sec 144, Plot No.5, 3 Commercial shops, FIR agaibst builder, is police doing their bit? Are the builders absconding?

  2. I had purchased a flat from TDI at Tuscan heights in kundli, haryana, I had purchased in 2011, and now they send a possession letter after the delay of 5 years as per their agreement. My balance payment is of Rs. 4.5 lacs but they are demanded 14 lacs with explanation that they increased the super area. What we can do? Please suggest.

  3. I was told in the third and final RERA hearing that the order will be uploaded on website in one week. However it has been 2 weeks now and still no order is uploaded. One of my colleague is awaiting the order for last 2 months post his final hearing. I just want to know how much time in general does it take for order to be uploaded.

  4. After rera order also indya estates not even bothered to contact me nor to given my paid money with penalty

  5. i have a non complaince of rera order by unitech ltd and great value sharnam in sec 107 noida but i believe cant do anything in unitech as supreme court has barred lower courts from taking any stance o\in unitech cases till it decides their case ….thanks in adv for ur reply

  6. Hello Admin

    I finally got the order wherein builder has been asked to refund the amount paid so far along with interest. However the order is bit confusing. In the first paragraph of the order, builder has been asked to pay within 45 days of the order. However in the very next line, I have been asked to present my claim under Section 71 to adjudicating officer.
    So my doubts are:
    1) Shall I wait for 45 days and in case builder doesn’t pay, then present my claim? Or without waiting for 45 days, Should I present my claim right-away?
    2) Who is being referred to the adjudicating officer to whom I need to present my claim? Is it the VC of development authority who passed the orders or any local district judge to whom case might go for enforcement?

    Regards

    1. Dear Rishi, till date i.e Aug 2018, the adjudicating officer has not been appointed. As per our experience, for compensation, the order would be advised to file with adjudicating officer. Before advising anything, we need to review the order. Please send the order at rera@centrik.in

  7. Launched the complaint in MAHARERA last year against the builder in Mumbai, due to delayed possession. After 8 hearings and several discussions ,we singed the consent terms in Jan 18, and the same is recorded in MAHARERA.As per the consent terms signed between us builder agrees to pay monthly interest till the actual possession. Till last month he gave interest regularly but from this month he starts delaying the interest.What can I do now? He also not deposited the TDS deducted from interest amount in to income tax account against my pan number.

  8. UP RERA has passed order in my favour for refund of e tire amount deposited with Interest on 07.08.2018 within 45 days. Builder is not responding
    When and where and how should I file application for execution of orders

  9. Dear Sir/Mam,

    I paid the amount of rupees 1000 via EasyPay reference ID- 18090434967949. Payment is showing successful and the amount has been deducted from my account but I got the Transaction ID-UPRERA1725576340431 but not able to get the complaint ID through the http://up-rera.in/getcomplaint website.

    So it is requested you to look into this as I have mailed so many times to the contactuprera@up-rera.in but they didnt reply on the same matter from last so many days. So it is request you to look into this and help to to get the complaint ID.

    I received this message into my register mobile number:–
    Dear Sir/Madam, you have made a payment of Rs. 1000.00 to UTTAR PRADESH REAL ESTATE REGULATORY AUTHORITY vide EazyPay reference ID 18090434967949.

    Thanks and Regards:
    Ankush Gupta

  10. Calling Indya estate almost every week for my payment but Indya estate not bothering. Rera ordered to pay the payment.

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