How do I execute a RERA order if the builder does not pay after losing the case?

Question

I won my RERA complaint and the Authority ordered the builder to refund my money with interest, but the builder is not paying. How do I enforce this order? Specifically, I want to know how Real Estate (Regulation and Development) Act 2016, Section 40 applies to a situation like mine and what the property law position in India actually is. If there is a deadline I should be aware of, I need to know that now.

MyVakeel Legal Desk · Accepted Answer

How do I execute a RERA order if the builder does not pay after losing the case? is governed in India primarily by Real Estate (Regulation and Development) Act 2016, Section 40, Real Estate (Regulation and Development) Act 2016, Section 63 and Code of Civil Procedure 1908, Order 21. Outcomes in execute rera order disputes depend heavily on documentation, so check what you can actually evidence as you read.

Section 40(1) of RERA provides that if a promoter fails to pay any amount due under an order of the Authority, Adjudicating Officer or Appellate Tribunal, it can be recovered as arrears of land revenue by the Authority forwarding the order to the Collector of the district.

Alternatively, Section 40 read with the applicable state rules allows the order to be treated as a decree of a civil court and executed under the procedure laid down in Order 21 of the Code of Civil Procedure, including attachment of the promoter's bank accounts and properties.

Section 63 imposes a penalty on a promoter who fails to comply with or contravenes any order of the Adjudicating Officer, Authority or Appellate Tribunal, which can extend up to five percent of the project cost, giving the allottee an additional pressure point.

Directors and persons in charge of the promoter company can, in appropriate cases, be held personally liable for non-compliance where the RERA Authority record shows wilful default, particularly when the project is shown to be a shell for diverting allottee funds.

Filing an execution application promptly and following up with the Collector's office or the executing civil court is usually necessary since RERA orders are not self-executing and require the allottee to actively pursue recovery.

In practice, in this order: 1) Obtain a certified copy of the final RERA order confirming the amount payable; 2) File a recovery application before the Collector under Section 40 to recover the dues as arrears of land revenue; 3) Alternatively, file an execution petition before the appropriate civil court treating the order as a decree; 4) Report continued non-compliance to the RERA Authority to invoke penalty proceedings under Section 63.

Timing matters here: Real Estate (Regulation and Development) Act 2016, Section 40 works on limitation periods, so a execute rera order claim that is right on the merits can still fail if it is brought late. You can post the details on the MyVakeel forum for a practising advocate to review, or book a paid consultation with a Bar Council verified lawyer in property law.