Punjab RERA Recovery Certificate Against Builder for ₹22.04 Lakh

Obtaining a favourable RERA order is often only the first step for a homebuyer. In many cases, the real challenge begins when the developer fails to comply with the directions issued by the Real Estate Regulatory Authority.

A recent matter before the Punjab Real Estate Regulatory Authority (Punjab RERA) demonstrates how the law provides enforcement mechanisms when a builder does not honour a RERA order.

The dispute arose from proceedings initiated by homebuyers against a real estate developer. Earlier, Punjab RERA had passed an order directing payment of amounts due to the complainants. However, despite the order having attained finality, compliance was not made by the developer. As a result, execution proceedings were initiated before the Authority.

During the execution proceedings, Punjab RERA recorded that an amount of ₹22,04,275 was payable by the developer to the complainants. In addition to this amount, the Authority also directed payment of continuing interest at the rate of ₹34,685 per month from 01.11.2025 until realization of the amount.

Since the amount remained unpaid, Punjab RERA invoked the enforcement provisions contained in Section 40 of the Real Estate (Regulation and Development) Act, 2016. The Authority issued a Recovery Certificate and forwarded the matter to the Deputy Commissioner-cum-District Collector for recovery of the outstanding amount as arrears of land revenue.

The Recovery Certificate specifically directed recovery of ₹22,04,275 along with continuing interest of ₹34,685 per month. The Authority further directed that recovery proceedings be undertaken from the assets of the judgment debtor in accordance with law.

Why This Order Matters

Many homebuyers believe that once a RERA order is passed, payment will automatically follow. Unfortunately, that is not always the case.

This matter highlights an important aspect of the RERA framework. The law not only empowers regulatory authorities to grant relief, compensation, and interest, but also provides a mechanism for enforcing those directions where a developer fails to comply voluntarily.

The issuance of a Recovery Certificate under Section 40 of the RERA Act can be a significant step because the amount may be recovered as arrears of land revenue through the machinery of the State.

For homebuyers dealing with delayed possession, refund disputes, compensation claims, or non-compliance with RERA orders in Punjab, Chandigarh Tricity, Mohali, Zirakpur, Derabassi, and surrounding regions, this case demonstrates that enforcement remedies continue to remain available even after a final order has been passed.

At Siddhik Law Chambers, matters involving RERA disputes, execution proceedings, builder-buyer disputes, recovery certificates, delayed possession claims, and enforcement of RERA orders are examined on the basis of the record, applicable statutory provisions, and the remedies available under law.