Humbly seeks advice from the experts:
What options are available with a purchaser to recover back his money from the builder who is not paying subsequent to RERA order, even after RC is issued by RERA (and DM is unable to realize the money)?
As per your query!
Generally, a builder is given 45 days to execute a Rera order and comply with its direction. But in many cases, the orders are not complied with by the developer. In such cases, buyers can again approach the Rera Authority for execution.
As per section 40, the Rera authority has the power to get their orders executed. Clause 1 of this section lays down, “If a promoter or an allottee or a real estate agent fails to pay any interest or penalty or compensation imposed on him, it shall be recoverable from such promoter or allottee or real estate agent, in such a manner as may be prescribed as arrears of land revenue.”
Section 63 of Rera lays down stringent provisions for non-compliance of orders. It says, “If any promoter, who fails to comply with or contravenes any of the orders or directions of the authority, shall be liable to a penalty for every day during which such default continues, which may cumulatively extend up to five per cent of the estimated cost of the real estate project, as determined by the authority.
Failing to comply with the order of the Rera Appellate Tribunal is a punishable offence that can lead to imprisonment up to three years or a fine that may extend up to ten per cent of the cost of the real estate project, as per section 64 of the Rera Act.
Buyers can approach Rera authorities for getting their orders implemented in case of failure by the developer. There are provisions in the law to punish whoever fails to comply with the Rera authority orders.
Hope it clarifies the issues
Regards
Minakshi Bindhani
