Enforcing builder penalties under the Real Estate (Regulation and Development) Act, 2016 (RERA) in Punjab and Chandigarh is a critical legal remedy available to homebuyers, investors, and property lawyers. When builders violate statutory obligations—such as failing to deliver possession, misrepresenting project details, or ignoring RERA orders—buyers can initiate enforcement proceedings to recover penalties, compensation, and interest. This article provides a comprehensive legal framework for enforcing builder penalties under RERA, referencing key sections of the Act, procedural steps, and judicial precedents. It is designed to guide law students, clients, and legal professionals including RERA lawyers, civil property advocates, and high court lawyers in Chandigarh.

Legal Framework for Enforcing Builder Penalties Under RERA

Real Estate (Regulation and Development) Act, 2016

The RERA Act was enacted to regulate the real estate sector, promote transparency, and protect buyer interests. It empowers state-level authorities to adjudicate disputes and enforce penalties against non-compliant builders.

Section 3: Mandatory Registration of Projects

Builders must register their projects with the RERA Authority before advertising, selling, or booking units. Failure to register attracts penalties under Section 59.

Section 59: Penalty for Non-Registration

If a builder fails to register a project, the Authority may impose a penalty up to 10% of the estimated project cost. Continued non-compliance may lead to imprisonment up to 3 years or further fines.

Section 60: False Information

Providing false or misleading information during registration attracts a penalty up to 5% of the project cost.

Section 61: Contravention of Other Provisions

Any violation of RERA provisions not specifically covered under other sections may attract penalties as determined by the Authority.

Section 63: Non-Compliance with RERA Orders

Failure to comply with RERA orders may result in a penalty up to 5% of the project cost.

Section 64: Continued Non-Compliance

Persistent non-compliance may lead to imprisonment up to 3 years or additional fines.

Section 40: Enforcement of Orders

If a builder fails to pay penalties, interest, or compensation, the amount shall be recovered as arrears of land revenue.

Enforcement Mechanism in Punjab and Chandigarh

Filing a Complaint Before RERA Authority

Buyers can file complaints before the Punjab RERA or Haryana RERA (for Panchkula and adjoining areas) for violations such as delay in possession, misrepresentation, or non-compliance with orders.

Required Documents

  • Builder-buyer agreement
  • Payment receipts
  • Possession timeline
  • Correspondence with builder
  • Copy of previous RERA order (if applicable)

Filing Portals

  • Punjab RERA: rera.punjab.gov.in
  • Haryana RERA: haryanarera.gov.in

Execution of Penalty Orders

Once RERA passes an order imposing penalties, buyers may initiate execution proceedings under Section 40.

Steps for Execution

  • Submit execution application to RERA
  • Attach certified copy of order and proof of non-compliance
  • Request recovery as arrears of land revenue
  • RERA issues recovery certificate to District Collector or Revenue Officer

Recovery Actions

  • Attachment of movable and immovable assets
  • Freezing of bank accounts
  • Auctioning of builder’s property
  • Issuance of recovery warrants

Filing a Writ Petition Before High Court

If RERA fails to enforce its own order or delays execution, buyers may approach the Punjab and Haryana High Court under Article 226 for a writ of mandamus.

Judicial Precedents Supporting Enforcement

Amandeep Kaur v. ATS Infrabuild Pvt. Ltd.

RERA Punjab imposed penalties for non-compliance and directed recovery through revenue authorities.

Hari Om Sharma v. Indian Co-op House Building Society

RERA Punjab enforced penalty orders and clarified recovery procedures.

Samruddhi Co-operative Housing Society Ltd v. Mumbai Mahalaxmi Construction Pvt. Ltd.

Supreme Court upheld the enforceability of RERA orders and emphasized buyer remedies.

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 possession delays, refund refusal, or misrepresentation, homebuyers in Chandigarh can initiate structured enforcement proceedings. Below is a detailed guide to help clients, law students, and legal professionals including RERA lawyers, civil property advocates, and high court lawyers in Chandigarh navigate the process effectively.

Step 1: File Complaint Before RERA Authority

Initiate a formal complaint before the Punjab RERA or Haryana RERA (for Panchkula and adjoining areas) citing builder violations under the Real Estate (Regulation and Development) Act, 2016.

  • Include the builder-buyer agreement, payment receipts, and possession timeline.
  • RERA lawyers in Chandigarh assist in drafting legally sound complaints and framing reliefs under Sections 18, 31, and 59 of the Act.

Step 2: Obtain Penalty Order from RERA

Attend hearings before the RERA Authority and secure a final order imposing penalties, compensation, or interest against the builder.

  • Orders may be passed under Sections 63, 64, or 60 depending on the nature of non-compliance.
  • Civil property advocates in Chandigarh help present evidence and argue for maximum relief.

Step 3: File Execution Application Under Section 40

If the builder fails to comply with the penalty order, file an execution petition before the same RERA Authority.

  • Attach certified copy of the order, proof of service, and builder’s non-compliance.
  • Request recovery of dues as arrears of land revenue through the District Collector or Revenue Officer.

Step 4: Monitor Recovery Through Revenue Authorities

Once the recovery certificate is issued, track enforcement actions such as asset attachment, bank account freezing, or property auction.

  • Use RTI applications to monitor progress and ensure transparency.
  • Civil property lawyers in Chandigarh assist with follow-up and coordination with revenue officials.

Step 5: Escalate to High Court if Builder Obstructs Recovery

If the builder obstructs execution or RERA delays enforcement, escalate the matter to the Punjab and Haryana High Court.

  • File a writ petition under Article 226 for a writ of mandamus or initiate contempt proceedings.
  • High court advocates in Chandigarh specialize in enforcement litigation and judicial remedies.

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
  • Consult civil property lawyers for asset attachment strategy

Enforcing builder penalties under RERA in Punjab and Chandigarh is a powerful legal remedy for homebuyers facing non-compliance, possession delays, and misrepresentation. The RERA framework provides clear provisions for imposing penalties and recovering dues through revenue authorities. Whether you are a law student studying real estate regulation or a buyer seeking justice, consulting qualified RERA lawyers, civil property advocates, and high court lawyers in Chandigarh ensures that your rights are protected and enforced effectively.

FAQs on Enforcing Builder Penalties Under RERA in Chandigarh

  1. What penalties can be imposed on builders under RERA? Penalties include fines up to 10% of project cost, imprisonment up to 3 years, and recovery of compensation. RERA lawyers in Chandigarh assist in initiating enforcement proceedings.
  2. How can I enforce a RERA penalty order in Chandigarh? File an execution application before RERA. The Authority will issue a recovery certificate to revenue authorities. Civil property advocates in Chandigarh help with documentation and follow-up.
  3. What if the builder refuses to comply with the RERA order? You may approach the High Court under Article 226 for a writ of mandamus or file contempt proceedings. High court lawyers in Chandigarh handle such enforcement litigation.
  4. Is it mandatory to send a legal notice before filing for penalty enforcement? While not mandatory, sending a legal notice strengthens your case. RERA advocates in Chandigarh recommend issuing a notice before initiating execution.
  5. Can I recover penalty through asset attachment? Yes. Under Section 40, penalties can be recovered as arrears of land revenue, including attachment and auction of builder’s assets. Property lawyers in Chandigarh assist with recovery strategy.