If you are stuck in such a situation, here is what to do.

Mr. Rohan Mehra, a marketing professional, invested his life savings into a flat in the “Azure Heights” project developed by “Prestige Builders Ltd.” in the city of Avantika. Like many homebuyers, he faced significant delays in possession. Acting on his rights, Mr. Mehra filed a complaint with the state’s Real Estate Regulatory Authority (RERA). After due process, RERA passed an order in his favor, directing Prestige Builders Ltd. to pay a substantial amount as compensation for the delay within 60 days of the order.

However, when Mr. Mehra approached the builder for the compensation and to get his flat registered, he was met with a shocking demand. The builder’s representatives insisted that they would only proceed with the registration if Mr. Mehra formally withdrew his RERA case. Caught in this dilemma, Mr. Mehra is now seeking clarity on the legal steps to enforce his rights and secure his property without succumbing to the builder’s illegal pressure.

Advice in such cases

Receiving a favorable RERA order is a significant victory, but the battle is often only half-won. The next stage, execution, is critical. Here is some preliminary advice:

• Never agree to withdraw your case in exchange for what you are already legally entitled to. The RERA order is a legal directive, not a point of negotiation.
• Keep all communication with the builder in a written format, such as emails or registered letters. If the builder makes demands over the phone, follow up with an email summarizing the conversation to create a record.
• Do not sign any documents, undertakings, or new agreements provided by the builder without legal review.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

Applicable Sections of Law

The primary legislation governing this situation is the Real Estate (Regulation and Development) Act, 2016 (RERA). The key provisions for enforcement are:

• Section 40 of RERA, 2016: This is the most crucial section for execution. It states that if a promoter, allottee, or real estate agent fails to pay any interest, penalty, or compensation imposed on them by the Authority or the Appellate Tribunal, the amount is recoverable as an arrear of land revenue. This means the RERA Authority can issue a Recovery Certificate to the District Collector to seize and sell the builder’s assets to recover the dues.
• Section 63 of RERA, 2016: This section deals with penalties for non-compliance with the orders of the Authority. If a promoter fails to comply with an order, they can be penalized with a fine for every day of default, which may cumulatively extend up to five percent of the estimated cost of the real estate project.

If you are the complainant

As the complainant who has won the order, you hold the legal high ground. Your next steps should be methodical and legally sound.

• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.
• Once the 60-day period (or any other period specified in the order) for compliance has passed, you must file an “Execution Petition” or “Application for Execution” before the same RERA Authority that passed the original order.
• This petition informs the Authority that its order has not been complied with and requests the initiation of recovery proceedings under Section 40 of RERA.
• Explicitly mention the builder’s illegal demand to withdraw the case as a condition for registration. This demonstrates the builder’s malafide intent and can strengthen your case for penalties under Section 63.

If you are the victim

As the victim of the builder’s non-compliance and coercive tactics, your focus should be on enforcement, not negotiation.

• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.
• Do not give in to the builder’s pressure. Refusing to register a flat after receiving full payment and a RERA order is illegal.
• Your primary recourse is the execution proceeding through RERA. This is a formal legal process designed for exactly this kind of situation.
• Document every instance of the builder’s refusal. An email stating, “As per our telephonic conversation, I am ready for registration, but I will not withdraw my RERA case as it is my legal right,” can serve as crucial evidence.

How the police behave in such cases

The enforcement of a RERA order is a civil matter, and the police have a limited direct role. You cannot go to a police station and ask them to enforce the RERA order for payment. The designated legal channel is through the RERA Authority and the District Collector’s office for revenue recovery.

However, if the builder’s actions escalate to criminal offenses, the police can be involved. For instance, if the builder or their agents threaten you with harm (criminal intimidation under Section 351 of the Bharatiya Nyaya Sanhita, 2023) or engage in fraudulent activities that amount to cheating (Section 316 of BNS), you can file a separate police complaint (FIR). This criminal case would proceed independently of the RERA execution proceedings.

FAQs people normally have

Can the builder legally stop my flat’s registration because of a RERA case?

No. It is completely illegal. The registration of the property and the RERA order for delay compensation are two separate issues. The builder cannot make one conditional upon the other. This action can be viewed as coercion and contempt of the RERA order.

What happens if the builder ignores the RERA execution notice?

If the builder fails to comply even after the execution petition is filed, the RERA Authority will issue a Recovery Certificate. This is sent to the District Collector/Magistrate of the area where the builder’s property is located, empowering them to seize and auction the property to recover the amount due, just as they would for unpaid property taxes.

Is it mandatory to hire a lawyer for filing an execution petition?

While you can file it yourself, it is highly advisable to hire a lawyer. The execution process involves specific legal formats, procedures, and follow-ups. An experienced lawyer can navigate the system efficiently, handle arguments before the Authority, and ensure the process moves forward correctly.

What evidence is required?

For filing an execution petition, you will primarily need:

• A certified copy of the final RERA order.
• Proof that the compliance period mentioned in the order has lapsed.
• A copy of your legal notice or letter sent to the builder requesting compliance, if any.
• Any documented evidence (emails, WhatsApp chats, letters) of the builder’s refusal to comply or their demand for you to withdraw the case.
• The execution petition drafted in the prescribed format.

How long will the investigation take?

In this context, the question is not about investigation (which is complete) but about the execution process. The timeline for execution can vary significantly. After you file the petition, the Authority will issue a notice to the builder. If they still don’t comply, the process of issuing a Recovery Certificate and sending it to the Collector begins. The entire process, from filing the execution petition to the actual recovery of money, can take anywhere from a few months to over a year, depending on the efficiency of the RERA bench and the Collector’s office.

Advocate Sudhir Rao, Supreme Court of India