Overview
A RERA order the builder ignores is only half a victory — and builders know most buyers stop there. The Act provides real enforcement: Section 40 converts refund/interest orders into recovery certificates executed by the district collector as arrears of land revenue (attachment and auction of builder assets), Section 63 stacks daily penalties up to 5% of project cost for non-compliance, and persistent defiance supports prosecution. The craft is in execution practice: finding attachable assets, pushing collectors who sit on certificates, and using insolvency as pressure where the builder pleads empty pockets.
Key Provisions — RERA, 2016
- Section 40(1) — amounts ordered are recoverable as arrears of land revenue via recovery certificates to the collector.
- Section 63 — non-compliance with authority orders draws penalties up to 5% of the estimated project cost, accruing daily.
- Adjudicating-officer compensation orders are similarly executable; wilful default supports prosecution under Section 64.
- An unpaid RERA order is also a debt supporting IBC pressure — often what finally makes a builder pay.
What You Can Get
How We Handle It
Execution Application
Non-compliance placed on record; recovery certificate sought under Section 40.
Collector Follow-Through
The certificate pursued with the district collector — the stage where matters stall without pressure.
Asset Tracing
Builder properties, receivables, and unsold inventory identified for attachment.
Attachment / IBC
Attachment and auction — or an insolvency petition that changes the builder's mind.
Frequently Asked Questions
I won a refund order a year ago; the builder simply ignores it. Was it all pointless?
No — but orders don't self-execute. The Section 40 certificate and collector process, actively pushed, is how paper becomes money. Most buyers never file the execution; that's what builders count on.
The builder says the company has no money — everything is in other group firms.
Common and answerable: execution against the promoter entity's assets and unsold flats, penalties that accrue personally, and IBC proceedings that reach the project's assets. 'No money' usually means 'not this pocket'.
Legal Connect connects you with independent advocates; we are not a law firm and this page is general information, not legal advice. Homebuyer groups filing together get the strongest outcomes — call +91 22 6555 3444.