Execution of RERA order and attachment of assets of builders


Status as on- 09/12/2021

RERA orders and the default in payment by Builders:

The RERA Authority has come as a great relief for the real estate allottees and has been effectively hearing and disposing of the complaints of the allottees against the reckless defaulting Builders and Promoters.

But after the final order for payment of delayed interest, refund, compensation etc., the allottees face a lot of difficulties in execution of the orders. The builders who are already in default do not care about the orders and the due dates of the RERA Orders.

The allottees already provided with the relief are still with empty hands. The Authority has the power to hear the grievances of the allottees regarding execution of the orders and the Authority also has the powers to pass orders:

  • For attachment of properties / bank accounts of the builder to ensure execution;
  • Issue summons to directors to appear in person before the Authority for “Oral Examination” and submit details of assets of the builder that could be attached;
  • Issue directions for production of any books and documents of the builder.

Application for execution of orders of RERA:

When the due date as provided by the RERA has passed and the builder has not made the payments then the allottee has the right to file for an application for execution of the RERA orders before the same Authority which passed the order for payments.

Rule 27(1) of the Haryana Real Estate (Regulation and Development) Rules, 2017 states that:

(1) Every order passed by the adjudicating officer or the Authority or the Appellate Tribunal, as the case may be, under the Act or rules and the regulation made thereunder, shall be enforced by an adjudicating officer of the Authority or Appellate Tribunal in the same manner as if it were a decree or a order made by a civil court in a suit pending therein; and it shall be lawful for the adjudicating officer or the Authority or the Appellate Tribunal, as the case may be, in the event of its inability to execute the order, send such order to the civil court, to execute such order. “

The same Court/Authority is allowed to hear and execute the orders passed by it as per the rules and procedure laid down by the Civil Procedure Code (CPC) as under Section 81 of RERA Act operation of other laws is not barred and the RERA Authorities are not bound by any procedure but could readily take the help of other laws whenever required.

Powers in execution:

The Court/Authority hearing the execution application has all the powers of a civil court and could also transfer the case to any other civil court, if it thinks fit, due to its inability to execute. The Authority could make any orders, issuing summons to directors, attachment of property, etc., as mentioned above, as per the facts and circumstances of the particular case.

How to initiate execution proceedings and proper advise:

The allottee needs to be vigilant about his rights as it is established principle of law that ‘Equity aids the vigilant, not those who sleep on their rights’. The allottee needs to file the execution application before the competent Court/Authority with proper legal advice for speedy execution of the orders.

Disclaimer: The above article is based on the personal interpretation of the related orders and laws. The readers are expected to take expert opinion before relying upon the article. For more information, please contact us at rera@centrik.in

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