What to do when builder does not bind by the RERA order?


Once the RERA Authority passes an order for compensation and interest, the builder has 45 days to execute the order and provide the compensation and interest to the home buyer. This period begins from the date on which the order is served upon the builder and can be extended only if the builder provides substantial reasons to the authority.

However, there are several cases when the builders refuse to enforce the RERA order delivered by the Authority within time and home buyers are left without resolution of their grievance with the builder. In such circumstances, the RERA Authority can be approached to get the RERA order executed by the builder as per the provisions of Section 40 of the Act.

Section 40 of the RERA Act states that if a promoter, allottee or real estate agent fails to pay any interest or penalty or compensation imposed by the adjudicating officer or the RERA Authority, it can be recoverable from such promoter or allottee or real estate agent in such manner as may be prescribed as an arrears of land revenue.
Section 63 of the RERA Act lays down the penalty for non-enforcement of RERA order. If any promoter fails to comply with or contravenes any of the orders or directions of the Authority, he shall be liable to a penalty of 5% of the estimated price of the real estate project for every day during which such default continues.

Under penalties for non-compliance with the Act, the builder may also face imprisonment for a term extendable up to 3 years or a fine which may extend up to 10% of the cost estimated of the real estate project, or both.

Legistify has been assisting home buyers all over the country by connecting them with 650+ expert RERA lawyers in India. We have been helping home buyers in taking legal action against flouting builders and enabling them to claim compensation and interest in their delayed possession matters. Our experts can draft, file and represent your RERA complaint before the appropriate authority and help you with the execution of RERA order in case of non-compliance by the builder.

Reference: The Real Estate (Regulation and Development) Act, 2016



Ask FREE question
Ask Question
Eg - Start with How, Why, What, Should I, When will...? etc
Thank you.  Please share the below details
* If you are outside India, mention WhatsApp Number with Country Code
Place of Property / Employment / Legal Issue / Residence / Your City