Here’s a blog post based on the Haryana Real Estate Appellate Tribunal (HREAT) decision: Can a Homebuyer Be Asked to Trace a Builder’s Assets? HREAT Says No. It is the promoter who on his own has to provide Builder Asset Affidavit.
In an important ruling strengthening the enforcement mechanism under the Real Estate (Regulation and Development) Act, 2016 (RERA), the Haryana Real Estate Appellate Tribunal (HREAT) has held that a decree holder cannot be expected to independently locate the assets and bank accounts of a defaulting promoter for execution of a recovery order.
In RERA execution proceedings, a Builder Asset Affidavit is a sworn declaration filed by a developer (Judgment Debtor) detailing their movable and immovable assets, bank accounts, and liabilities. It is a vital tool used by homebuyers (Decree Holders) to identify and attach assets to recover due funds or interest. [1, 2, 3, 4, 5]
The decision addresses a practical challenge frequently faced by homebuyers even after obtaining favourable orders under RERA.
Background-Builder Asset Affidavit
A homebuyer had secured a refund order directing the promoter to repay more than ₹1.23 crore. Despite the order attaining finality, the promoter failed to comply with the directions and the awarded amount remained unpaid.
During execution proceedings, the homebuyer sought directions requiring the promoter to disclose details of its bank accounts and assets so that recovery proceedings could be effectively carried out.
However, the Adjudicating Officer declined the request and instead directed the decree holder to furnish verified details of the promoter’s movable and immovable properties and bank accounts for attachment purposes.
The homebuyer challenged this approach before the Appellate Tribunal.
Also Read-List of Assets Affidavit in RERA Execution Haryana
Key Question Before the Tribunal
The central issue was whether a homebuyer who has already obtained a recovery order can be compelled to trace and identify the assets of a defaulting promoter, or whether the executing authority can direct the promoter itself to disclose its financial particulars.
Tribunal’s Findings
The Tribunal observed that once an order under RERA becomes final, it is enforceable as if it were a decree of a civil court.
The Tribunal further noted that execution proceedings must be meaningful and effective. Expecting a decree holder to discover the promoter’s bank accounts and assets without any assistance would make enforcement unnecessarily difficult and could frustrate the purpose of the legislation.
Referring to execution principles under the Code of Civil Procedure, the Tribunal emphasized that an executing authority possesses the power to require a judgment debtor to disclose assets through a sworn affidavit.
Asset Disclosure by Promoters
According to the Tribunal, details regarding bank accounts, movable assets, and immovable properties are within the exclusive knowledge of the promoter.
Therefore, placing the burden on the homebuyer to identify those assets is neither practical nor consistent with the objective of effective execution.
The Tribunal held that the adjudicating authority should have exercised its powers to compel disclosure rather than requiring the decree holder to undertake an investigation into the promoter’s financial affairs.
Significance for Homebuyers
The decision provides important relief to homebuyers who often obtain favourable RERA orders but face significant obstacles during recovery proceedings.
The ruling recognizes that enforcement is as important as adjudication. A successful litigant should not be left without an effective remedy merely because the assets of the judgment debtor are not publicly known.
The judgment strengthens the principle that execution proceedings must be capable of delivering actual relief rather than remaining a paper exercise.
Also Read-ARREST SHOWCAUSE NOTICE PENALTY RERA EXECUTION
Key Takeaways
- Orders passed under RERA are enforceable like civil court decrees.
- Authorities conducting execution proceedings can direct promoters to disclose assets and bank accounts.
- Homebuyers cannot reasonably be expected to independently discover the financial details of defaulting promoters.
- Asset disclosure may be directed through a sworn affidavit.
- Effective execution is essential for achieving the objectives of the RERA framework.
The Legal Framework
- Order 21, Rule 41(2) of the CPC: Empowers executing courts and RERA Authorities/Adjudicating Officers to require the judgment debtor (the builder and its directors) to file an asset affidavit.
- Form 16A, Appendix E: This is the standard CPC format used to declare assets and prevent promoters from hiding them to evade payment
Key Components of the Affidavit
- Bank Accounts: Details of all operating, personal, and RERA-designated accounts (along with recent statements).
- Immovable Properties: Land parcels, unsold inventory, and office buildings owned by the company or its directors.
- Movable Assets: Investments, equity, and vehicles.
- Liabilities: Complete details of outstanding debts and other creditors
What Happens If the Builder Defaults?
- Show Cause Notice: The RERA Authority can issue notices to directors demanding reasons for non-compliance. [1, 2]
- Civil Imprisonment: Under Order 21, Rule 41(3) of the CPC, directors can be detained in civil prison for up to 3 months for disobeying the affidavit order. [1, 2]
- Arrest Warrants & Attachment: Courts can authorize arrest warrants for the directors and order the attachment or auction of the developer’s properties
Also Read-Vatika Limited HighCourt Ruling on RERA Execution
Conclusion
The Haryana Real Estate Appellate Tribunal’s ruling reinforces the importance of meaningful enforcement under RERA. By recognizing the power to compel asset disclosure from defaulting promoters, the Tribunal has taken a practical approach that can significantly assist homebuyers in realizing the benefits of orders passed in their favour.
The decision highlights that access to justice does not end with obtaining an order; it also requires an effective mechanism to ensure compliance and recovery.
By Satish Mishra Advocate, More on 99888-17966
Source: Haryana Real Estate Appellate Tribunal Order dated 12.02.2026.
