Best Legal Practice to Execute RERA Order in Uttar Pradesh
This article contains video explanation. Watch video
How to execute UPRERA Order?
Under the Real Estate (Regulation & Development) Act 2016 (“the RERA Act) it is provided that if the Promoter is unable to deliver the Flat or Plot to the Allottee as per the terms and conditions of the Builder Buyer Agreement / Sale Agreement than the Allottee has right to:
- either seek the return of the amount paid so far for the real estate property along with MCLR+1% (in U.P.) or;
- to stay in the Project by seeking delay penalty at MCLR+1% applicable from the date of promised date of delivery as per the Sale Agreement; and
- Seek compensation for any loss due to non-fulfillment of the terms and condition of the sale agreement, like loss of: opportunity, payment of rent as well EMI; opportunity of better education of kids of allottees, opportunity of investment etc.
In practice the reliefs at item 1 and 2 above are sought before the concerned Real Estate Regulatory Authority (“the RERA”) and item at item 3 is sought before the a Adjudicating Officer of the same RERA.
In this write up I will discuss about the situations of refund order and process of execution of such orders:
When does a clear refund order is granted by the UPRERA?
Answer: A clear refund order is granted by the UP-RERA when the Promoter fails to satisfy it that it can deliver the real estate property in next one year.
When contingent refund order is granted by the UPRERA?
Answer: If the builder satisfies the UP-RERA that it can deliver the real estate property within around a year or before, then the UPRERA gives an opportunity to it to deliver by a specific date and till such date delay penalty at MCLR+1% is to be paid from date of delivery as promised in the terms and conditions of the sale agreement. Such orders are passed by the UPRERA with an aim to maintain a balance between the interest of allotees of who seek possession versus those who seek return of money.
In either of the above situations, the order is to be complied by the Promoter within 45 days. However, the Promoter has 60 days time to file an appeal.
The steps of execution of the order of refund suggested in the subsequent paragraphs of this write-up are in a circumstance where the Promoter has not filed any appeal against the order of refund.
How to execute RERA Order?
So, if the promoter is not refunding the amount as ordered by the UP-RERA despite the passage of 45 days from the date of order of payment then an allottee should take the following steps:
- File the Execution request with the UP RERA at their portal. You can get the link by clicking here.
- The UP RERA will issue a notice to the builder to comply with the order within 30 days or else recovery orders shall be issued against it.
- The Promoter must deposit/ pay the money within 30 days otherwise the UP-RERA will issue Recovery Certificate against the builder to be executed by the Collector where the property(ies) of the promoter is/ are situated.
- On receiving such orders from the UPRERA, the Collector issues the recovery citation and has the power to seize the bank accounts of the Promoter and further auction the properties of the builder by issuing a public notice.
- The Collector has to follow the process of recovery of dues as arrears of land revenue as provided in the U.P. Revenue Code 2006 and U.P. Revenue Code Rules 2016.
- In case the Collector is not exercising its powers and is delay dallying the process of recovery then the allottee has the remedy to approach the Hon’ble High Court for a writ of mandamus against the Collector praying for order within a limited period of time.
Note:
The Allottee should try to get the office and commercial properties of the Promoter for sealing and auction purposes.
In city like Noida, where the land is on lease and it actually belongs to the NOIDA Authority, it is more practical to put the commercial properties of the Promoter on auction by the Collector and UPRERA.
The UPRERA Should also in there recovery citations ask the Collector to auction the commercial and office of the Promoters.
Further, there is also Penalty for failure to comply
Section 63 of Rera lays down stringent provisions for non-compliance of orders. It lays that in case any promoter, who fails to comply with or contravenes any of the orders or directions of the authority, shall be liable to penalty for every day during which such default continues, which may cumulatively extend up to five percent of the estimated cost of the real estate project, as determined by the authority.
Excellent video
thank you Mr. Ajeet
Flat Booked in 2012. 94 % payment done
Rera execution dicision to complete in October 2020 but no response till date
Neither Rera or builder not responding after that. What i have to. Lost my job in covid.
Builder K M residency Raj nagar ext Gzb.
file execution and followup over email with the concerned bench. Call the office of the concerned bench member for the email ID. Numbers provided on the up-rera website.
Builder sold fire check floor. What to do. Building is of 40 floor
He sold us 20 th floor. And registration done now while looking for loan we learn it is fire check floor. Now what can be done. Cc taken upto 11th floor so far.
That is a very serious issue and remedy would be to file a complaint case before State Consumer Forum for compensation and refund of money and also an FIR for cheating and fraud.
Could you pls guide what would be finanancial implication of truning to HC to get the order executed. I am from Karnataka. I got the RRC and exection order but it is lying with the tahsildar for months together.
Hey, even we are from Bangalore and we too have got execution order for our flat but looking at your case we r too getting bit worried when we will get our money… can u please get in touch if u have found Any means of solution for this problem.. contact 9341259508
Excellently written Mr. Prashant
thank you Mr. Sakhuja
Thank you for the amazing information on property lawyer!!
I have received the RC against the builder from up rera 3 years back but till now not received the payment
You can approach the Hon’ble High Court against the inaction of the District Collector.
Is there any way to file criminal fraud cases again the builder executives to failure to comply with RERA refund orders.
MY FLAT IN AFFORDABLE HOUSING BUT, BUILDER CHARGES EDC (EXTERNAL DEVELOPMENT CHARGES) , AREA ENHANCEMENT CHARGES ,2 YEAR ADVANCE MAINTAINANCE WITH GST ETC. IN MY POSSESSION LETTER, PLEASE SUGGEST /HELP ANY EDC CHARGES IN AFFORDABLE HOUSE ?
MY FLAT IN AFFORDABLE HOUSING PROJECTS , BUT OUR BUILDERS DEMANDS EDC,2YEARS ANNUAL MAINTAINACE ADVANCE, AREA ENHANCEMENT CHARGES WITH GST ETC. PLS. SUGGEST /HELP FOR ANY RULE IN AFFORDALE HOUSE TO PAY EDC ETC.
Area Enhancement is not acceptable without a certificate from Metrology Department. You can approach RERA.
if rera has order for delay interest, and possession, and due date is 24th march 2023, order was passed in april 2022, so when should i request for order execution as i have not received the possession yet.
If you see that building is still not complete than you may file second complaint for refund, disclosing about first complaint. If you seek possession still then time is ripe for execution post 23.03.2023. Thank you.