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Service in the interest of Justice

What if builder doesn't comply with RERA orders?

           RERA Punjab Judgment and Decisions

RERA Act envisages provision to issue Recovery warrants in case builder/developer fails to comply with RERA Authority orders. 

Sec 40 of the RERA Act provided for Recovery of Interest or penalty or compensation and enforcement of order in Real Estate  (Regulation and Development ) Act 2016. 

Sec 40 (1) enables RERA Authority to recover amount as arrears of land revenue and direct the concerned revenue office to attach the assets in case the amount is unable to be recovered. 

Also Read- RERA For the Home Buyer.

Revenue officer can further conduct searches, freeze bank accounts, auction property and do seizure of assets if directed by the authorities.

Recovery warrants are served if the builder/developer /buyer fails to comply with RERA orders. Only after issuance of showcause notice u/s 63 of RERA Act as to why should the penalty not be imposed on incumbent,  the recovery warrants are issued. 

Maha RERA is protecting the rights of home buyers in this regard effectively as quick notices and recovery warrants are introduced without any dilly-dallying. 

Also Read- Projects having completion certificate after July 2017 are under the ambit of RERA says RERA-Haryana

Be it RERA Punjab at Mohali or RERA Haryana at Panchkula,  authorities are quick in acting on complaints whenever developer fails to handover the property or plot/flat purchased.  

See the image.


RERA Punjab Orders in Delay in Possession Cases

The Act came into force on May 1, 2017 and a lot has happened in the country in Real Estate Sector. The regulator has brought back the confidence of home buyers in real estate projects and now builders dare to take buyers for a ride. 


How builder is more accountable for delay in possession now?

1 A written affidavit must declaring all necessary conditions.
2 Date of possession is the essence of contract along with rate of interest to be paid in case of a default. 
3 The builder has to ensure land title is clear and free from all disputes. 
4 The 70% money to be kept in escrow account and to be used in phase manner as per construction.  The accounts to be duly audited in 6 months by CA, certified engineer and team of competent officials.  
5 The rate of interest in case of a default is standardised which is State Bank of India highest micro lending rate plus 2%. 



Still, it's a long way for RERA to go but having a regulator with effective mechanism of its implementation will strengthen builder buyer relation in this country. 

The fact that the RERA authority itself can take the Suo moto cognizance u/s 5 of the act bolsters the empowerment of a home buyer. 

The centre has provided the modal act and now state government has to implement it its true letter and spirit. 

We hope that now builders and buyers will both have sanctity of their words and agreement. 

In case of any advice related to RERA matters in Punjab at Mohali or RERA Haryana at Panchkula,  please dial 99888-17966 or email us at

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