The Real Estate (Regulation and Development) Act, 2016 (RERA) was enacted to protect homebuyers and regulate the real estate sector. However, What If the Builder Refuses to Comply with RERA Order in Chandigarh? despite clear orders from RERA authorities, many builders fail to comply with directives related to refunds, possession timelines, or compensation. This article explores the legal remedies available when a builder refuses to comply with a RERA order in Chandigarh. It is designed to guide clients, law students, and legal professionals including RERA lawyers, civil property advocates, and high court lawyers in Chandigarh.
Legal Framework Governing RERA Compliance
Real Estate (Regulation and Development) Act, 2016
RERA provides a robust mechanism for grievance redressal and enforcement of orders. The relevant provisions include:
Section 31: Filing of Complaints Any aggrieved person may file a complaint with the Authority or Adjudicating Officer.
Section 38: Powers of the Authority The Authority has powers similar to a civil court, including summoning witnesses and enforcing orders.
Section 40: Enforcement of Orders If a promoter, allottee, or agent fails to comply with an order, the amount due shall be recovered as arrears of land revenue.
Section 63: Penalty for Non-Compliance Failure to comply with RERA orders may attract penalties up to 5% of the project cost.
Section 64: Imprisonment for Continued Non-Compliance Persistent non-compliance may lead to imprisonment up to 3 years or further fines.
What Happens When a Builder Refuses to Comply?
Builder Ignores Refund or Possession Order
When a builder fails to refund the booking amount or hand over possession despite a RERA order, the buyer may initiate enforcement proceedings under Section 40.
Filing for Execution of RERA Order
- Submit an application for execution before the same RERA Authority.
- Attach the original order, proof of service, and builder’s non-compliance.
- Request recovery as arrears of land revenue.
Role of Revenue Authorities
RERA may direct the District Collector or Revenue Officer to recover the amount by:
- Attaching movable and immovable assets
- Freezing bank accounts
- Auctioning property
- Issuing recovery warrants2
Builder Challenges the Order
Builders may file appeals before the RERA Appellate Tribunal under Section 44. However, they must deposit at least 30% of the penalty or compensation before the appeal is entertained.
Appeal Process
- File within 60 days of the order
- Submit grounds of appeal and supporting documents
- Pay mandatory pre-deposit
Builder Delays Compliance Despite Appeal Dismissal
If the appeal is dismissed and the builder still refuses to comply, buyers may approach:
- High Court under Article 226 for writ of mandamus
- Consumer Court for deficiency in service
- Civil Court for execution if RERA order is treated as a decree
Enforcement Mechanism Under Section 40 of RERA
Text of Section 40
Section 40(1): “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… as arrears of land revenue.”
Recovery Procedure
- RERA issues recovery certificate
- Revenue officer initiates attachment
- Builder’s assets may be seized or auctioned
- Recovery treated as government dues
Timeframe for Compliance
Builders are generally given 45 days to comply with RERA orders. Failure beyond this period triggers enforcement.
Judicial Precedents on Non-Compliance
Imperia Structures Ltd. v. Anil Patni (2020)
The Supreme Court upheld the concurrent jurisdiction of RERA and consumer forums, emphasizing the enforceability of RERA orders.
Ajay Kumar v. RERA Haryana
RERA dismissed a complaint due to builder’s persistent non-compliance and directed recovery through revenue authorities.
MahaRERA Enforcement Statistics
Maharashtra RERA issued over 176 recovery warrants in two years, demonstrating active enforcement.
Practical Steps for Buyers in Chandigarh
Step-by-Step Enforcement Guide Under RERA
When a builder fails to comply with a RERA order—whether related to refund, possession, or compensation—homebuyers in Chandigarh have a structured legal pathway to enforce their rights. Below is a detailed guide to help buyers, legal professionals, and property advocates navigate the enforcement process effectively.
Step 1: Wait for the Compliance Period
After the RERA Authority issues its final order, the builder is typically given 45 days to comply. This period allows voluntary execution of the directive—be it refunding the booking amount, handing over possession, or paying compensation.
- Tip: Preserve the RERA order, acknowledgment of service, and any builder correspondence.
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Step 2: Send a Legal Notice
If the builder fails to act within the compliance window, issue a formal legal notice demanding execution of the RERA order. This notice serves as a procedural prerequisite and strengthens your case during enforcement.
- Drafting Support: Engage RERA lawyers in Chandigarh or civil property advocates to ensure the notice is legally sound and properly served.
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Step 3: File Execution Application Before RERA
Submit an execution petition to the same RERA Authority that issued the original order. This application should include:
- Certified copy of the RERA order
- Proof of service and builder’s non-compliance
- Request for recovery under Section 40 of RERA as arrears of land revenue
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Step 4: Monitor Revenue Recovery Process
Once the execution is admitted, RERA may issue a recovery certificate to the District Collector or Revenue Officer. Enforcement actions may include:
- Attachment of movable and immovable assets
- Freezing of bank accounts
- Auctioning of builder’s property
- Tip: Use RTI applications to track progress and ensure transparency.
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Step 5: Escalate if Needed
If the builder obstructs recovery or RERA delays enforcement, escalate the matter through higher judicial forums:
- File a writ petition under Article 226 before the Punjab and Haryana High Court for a writ of mandamus
- Initiate contempt proceedings for deliberate defiance of RERA orders
- Approach consumer forums or civil courts if parallel remedies are viable
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Tips for Effective Enforcement
- Preserve all documents and correspondence
- Engage RERA advocates in Chandigarh for drafting and representation
- Avoid delay in filing execution to maintain urgency
- Use RTI to track recovery status from revenue office
When a builder refuses to comply with a RERA order in Chandigarh, the law provides robust remedies under Section 40 of the Real Estate (Regulation and Development) Act, 2016. Buyers can initiate recovery proceedings, seek attachment of assets, and even pursue contempt or writ petitions. Whether you are a law student studying enforcement mechanisms or a client seeking justice, engaging experienced RERA lawyers, civil property advocates, and high court lawyers in Chandigarh ensures that your rights are protected and enforced effectively.
FAQs on Builder Non-Compliance with RERA Orders in Chandigarh
- What can I do if the builder does not refund money after a RERA order? If the builder fails to refund the booking amount despite a RERA directive, you can file an execution application under Section 40 of the Real Estate (Regulation and Development) Act, 2016. The RERA Authority will issue a recovery certificate, and the amount will be recovered as arrears of land revenue through the District Collector or Revenue Officer. Experienced RERA lawyers in Chandigarh assist buyers in preparing execution petitions, attaching builder assets, and initiating recovery proceedings efficiently.
- How long does the builder have to comply with a RERA order in Chandigarh? Typically, builders are given 45 days from the date of the RERA order to comply—whether it involves refund, possession, or compensation. If the builder fails to act within this period, enforcement proceedings may be initiated. Civil property advocates in Chandigarh recommend sending a legal notice immediately after the compliance window expires and filing for execution without delay to maintain urgency and procedural momentum.
- Can the builder be jailed for non-compliance with a RERA order? Yes. Under Section 64 of RERA, persistent non-compliance may result in imprisonment up to 3 years, along with additional fines. If the builder continues to defy RERA orders even after appeal dismissal, buyers may file contempt petitions before the High Court. High court lawyers in Chandigarh are well-versed in handling such enforcement litigation and can seek judicial intervention through writs and contempt proceedings.
- What if the builder appeals the RERA order—does that delay enforcement? Builders may file an appeal before the RERA Appellate Tribunal under Section 44, but they must deposit at least 30% of the penalty or compensation before the appeal is entertained. This mandatory pre-deposit discourages frivolous appeals. If the appeal is dismissed and the builder still refuses to comply, buyers can proceed with execution. RERA advocates in Chandigarh help buyers challenge delay tactics and ensure timely enforcement of final orders.
- Can I file a writ petition if RERA fails to enforce its own order? Yes. If the RERA Authority fails to act on your execution application or delays enforcement, you may approach the Punjab and Haryana High Court under Article 226 of the Constitution for a writ of mandamus. This writ compels the authority to perform its statutory duty. Property lawyers in Chandigarh frequently handle such writ petitions and ensure that buyers receive timely relief through judicial oversight.