• Author Name: Anshul Gupta
  • Details:  Advocate, Supreme Court of India, LL.M.(Catholic University Lyon, France); Master 2( State University Lumiere Lyon, France) E-mail: angpartners@gmail.com



The Real Estate (Regulation and Development) Act, 2016 or RERA establishes a complaint redressal mechanism that enables home buyers or any other aggrieved person to file a complaint with the RERA authority or Adjudicating officer. Under RERA, a case against builder can be filed for delayed possession, non-compliance with real estate laws and rules, extra charges levied by builder, changes in builder layout without buyer’s permission and several other reasons. 

The home buyers are able to claim a refund with interest from the builder and cancel their booking for any of these reasons by filing a complaint under RERA. The RERA Authority is empowered under the Act to grant compensation and interest to the buyer or direct the builder to deliver possession within 12 months. 

  1. NON-COMPLIANCE WITH RERA ORDER BY BUILDER 

Once the RERA Authority passes an order for compensation and interest, the builder has 45 days to execute the order and provide the compensation and interest to the home buyer. This period begins from the date on which the order is served upon the builder and can be extended only if the builder provides substantial reasons to the authority. 

However, there are several cases when the builders refuse to enforce the RERA order delivered by the Authority within time and home buyers are left without resolution of their grievance with the builder. In such circumstances, the RERA Authority can be approached to get the RERA order executed by the builder as per the provisions of Section 40 of the Act. 

Section 40 of the RERA Act states that if a promoter, allottee or real estate agent fails to pay any interest or penalty or compensation imposed by the adjudicating officer or the RERA Authority, it can be recoverable from such promoter or allottee or real estate agent in such manner as may be prescribed as an arrears of land revenue. 

  1. EXECUTION OF RERA ORDER AGAINST THE BUILDER 

If the adjudicating officer or RERA Authority issues any order or directs any person to do any act, or refrain from doing any act, failure in compliance with such order or direction can be enforced by filing an application under Section 40 of the Act. Any person who has an order in their favour and the other party is not executing the same can file an application for enforcement of such order. 

In case the builder fails to enforce the order passed by the RERA Authority in favour of the home buyer, the home buyer can file an application for the execution of RERA order against the builder with the same RERA Authority. 

The home buyer can also send a legal notice to the builder for execution of the RERA order with the help of a RERA lawyer in India. This notice must be sent before an enforcement application is filed and can be used as proof when the builder fails to comply with the terms of the legal notice. 

  1. PENALTY FOR NON-ENFORCEMENT OF RERA ORDER 

Section 63 of the RERA Act lays down the penalty for non-enforcement of RERA order. If any promoter fails to comply with or contravenes any of the orders or directions of the Authority, he shall be liable to a penalty of 5% of the estimated price of the real estate project for every day during which such default continues. 

Under penalties for non-compliance with the Act, the builder may also face imprisonment for a term extendable up to 3 years or a fine which may extend up to 10% of the cost estimated of the real estate project, or both. 

Hope this update was useful. You can send us questions if you have any. You will get more useful updates in the coming days. Till then stay safe and inside and take care of your families.