HOW TO GET YOUR RERA ORDER IMPLEMENTED?

How to execute RERA order ?

Real-estate Regulatory Authority of India (RERA) authorities in states like Uttar Pradesh, Maharashtra, Haryana, Madhya Pradesh, Rajasthan and Karnataka are disposing off a large number of consumer complaints. UP-RERA itself has disposed off around 5036 orders for the refund of funds and 7242 orders for the grant of possession and RERA’s efforts have brought transparency and accountability in the real estate sector and created an environment conducive for the healthy development of the sector out of 56000 complaints filed by the home buyers

Maharashtra also as on May 3, 2023 has disposed off 14285 complaint, out of 21,274 and 6,989 is in the process of hearing. But these orders are not getting implemented as enforcement is a challenge. So, how can you get your RERA order implemented? Where real-estate company technically playing fraud with the home buyers and lots of home buyers cannot understand the game plan of the real-estate company at time of booking flat, getting earnest money and further at time of agreement to sale or balance transfer or sale deed with the banking financial institution under tripartite agreement.

RERA PROVISIONS: A builder is given 45 days to execute a RERA order and comply with its direction. But in many cases the orders are not complied by the developer. In such cases, buyers can again approach the RERA authority for execution. As per section 40, the RERA authority has powers to get their orders executed. Clause 1 of this section lays down, “If a promoter or an allottee or a real estate agent fails to pay any interest or penalty or compensation imposed on him, it shall be recoverable from such promoter or allottee or real estate agent, in such a manner as may be prescribed as arrears of land revenue.”

Clause (2) lays down that, “If any adjudicating officer or the regulatory authority or the appellate tribunal issues any order, then in case of failure by any person to comply with such order or direction, the same shall be enforced.”

After final order of the RERA complaint, Buyers can file an execution complaint and authority can issue a Recovery Certificate (RC) to get the same implemented by the district magistrate. Buyers can approach team Preach Law & Co. in case their orders are not implemented, and we will take action accordingly. We give 45 days in case of refund but the same may vary depending on the case. In some instances, RERA orders are not getting implemented where either builder has no funds to refund or other similar instances, but in that case authority have the powers to ensure buyers get justice.”

Buyers take the help of lawyers to send legal notice to the builder for enforcement of the RERA order, but this should be done before making an execution application to a RERA authority. RERA orders are getting implemented in Haryana as it has different recourse to get its order implemented. Any order, whether from authority or adjudicating officer, has a three-way process to award interest, compensation or penalty:

  1. Under section 40(1), authority can issue a recovery certificate and get the RERA order enforced. It is a very fast process;
  2. Under section 40(2) in Haryana, Rera authority also has the power of civil court, so authority orders are like a civil court decree. If within the given time-period the promoter or allottee does not pay, then a recovery certificate can be issued against the defaulting party. This is also applicable for allottees and not just builders.
  3. Haryana has received 6,000 complaints. Out of these around 2,000 complaints have been dismissed, another 2,000 have been disposed off, and another 2,000 are pending with us.”

PENALTY FOR FAILURE TO COMPLY:

  • Section 63 of Rera lays down stringent provisions for non-compliance of orders. It says, “If any promoter, who fails to comply with or contravenes any of the orders or directions of the authority, shall be liable to penalty for every day during which such default continues, which may cumulatively extend up to five percent of the estimated cost of the real estate project, as determined by the authority.”
  • Failing to comply with the order of the Rera Appellate Tribunal is a punishable offence which can lead to imprisonment up to three years or fine which may extend up to ten percent of the cost of the real estate project, as per section 64 of the Rera Act.
  • Buyers can approach Rera authorities for getting their orders implemented in case of failure by the developer. There are provisions in the law to punish whoever fails to comply with the Rera authority orders.
Written By : Krishna Kumar Mishra

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