If a builder does not comply with a RERA order, the homebuyer can seek execution/enforcement of the order. Under Section 40 of the Real Estate (Regulation and Development) Act, 2016, RERA orders can be enforced in the prescribed manner, and amounts such as compensation, interest, or penalties can be recovered as arrears of land revenue.
What can happen to the builder?
Execution proceedings can be initiated: The buyer can file an execution application before the concerned RERA authority to enforce the order.
Recovery of money: If the builder has been ordered to pay a refund, interest, compensation, or penalty and does not pay, the amount can be recovered through the statutory recovery mechanism.
Property or assets may be targeted for recovery: Depending on the applicable state RERA rules and execution procedure, recovery mechanisms can include attachment or other enforcement measures. For example, RERA authorities have used execution proceedings to pursue unpaid amounts.
Additional penalties may apply: Failure to comply with an order can attract penalties under RERA. For a promoter, Section 63 provides for a penalty for failure to comply with orders of the Authority, potentially calculated for each day of continuing default and subject to the statutory maximum.
The order can be enforced like a court decree: State RERA procedures may provide for enforcement in a manner similar to execution of a civil-court decree. For example, Haryana RERA expressly describes enforcement under Section 40 in this manner.
In simple terms: A builder cannot simply ignore a RERA order. If the builder does not comply voluntarily, the homebuyer can approach RERA for execution of the order and recovery/enforcement measures. The exact procedure and additional consequences can vary according to the state RERA rules.
