UP RERA missing the mark in securing Recovery Certificates


Status as on- 28/12/2020

RTI response by UP RERA reflects very low rate of Recovery Certificate execution. Only 353 have been realized so far of the 2,177 RCs issued in last 3 years.

UP RERA chairman shifts on the weight claiming RCs under purview of district authorities.


UP RERA was established as an adjudicating mechanism for speedy dispute redressal and protection of homebuyers in the real estate sector.

More than 28,000 cases filed in UP RERA since its formation, 74% has been disposed off. Those numbers also include 2,177 recovery certificates issued by the authority in past three years. Although, only 16% or 353 RCs have been realized so far, raising questions on the competency of the regulator. Defaulting builders are not paying back money to homebuyers even after issuance of RC. Thus, leaving homebuyers disgruntled even after obtaining recovery order from the authority.

The primary function of the regulator is to ensure development of incomplete projects and protect interest of all the stakeholders. However, the regulator can ensure compliance of RCs through district collectors under rule 24 of the UPRERA Rules, 2016, which empowers the authority to exercise powers of a civil court.

Standby UP RERA

According to UP RERA Chairman, Rajiv Kumar, “When it comes to RCs, our job is to issue it and it is for the district magistrates to see to it that buyers get their money back from the developers as mandated by UP-RERA.”

The recuperation in relation to Recovery Certificates is done by liquidating the assets of the builder or the company. However, in the current pandemic situation when real estate is going through unfavorable conditions, recovery is out of question.


The aforementioned figure clearly shows the failure of regulator in execution of RCs. The authority should take proper cognizance and ensure compliance of Recovery Certificates by builders and protect the interest of homebuyers. Further, the pandemic should not be used to cover the procedural gaps and the same should be resolved swiftly.

Disclaimer – The above article is based on interpretation of the related judicial pronouncement and related laws which may differ from person to person. The readers are expected to take expert opinion before placing reliance on it. For more information, please reach us at support@centrik.in or call us at 8383011629

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