M & Z Legal – Advocates & Solicitors

Introduction

An order granting relief is of limited practical value if the promoter does not comply. RERA provides several mechanisms for enforcement, but execution, recovery and penal consequences are not interchangeable.

Recovery and execution

Section 40 addresses recovery of interest, penalty and compensation, and enforcement of orders, directions or decisions in the manner prescribed. The applicable state rules and the character of the relief determine the route. An order directing payment should not be confused with an order requiring performance of a non-monetary obligation.

Penalty provisions

Sections 63 and 64 address specified failures to comply with orders or directions of the Authority and the Appellate Tribunal, respectively, subject to their statutory conditions. Other penalty provisions address distinct underlying contraventions. The correct provision must be selected by identifying which order was breached, who was bound by it and the period of default.

Pending appeals and stays

Filing an appeal does not ordinarily mean that the underlying order is automatically stayed. The operative appellate order must be examined. A promoter who has filed an appeal but obtained no stay may remain obliged to comply, subject to the precise terms of the statute and judicial orders.

Due process and proof

A penal proceeding requires proof of the underlying order, proper communication, the person bound, non-compliance and satisfaction of the statutory procedure. Calculations of daily penalties and statutory ceilings must be accurate. Recovery of an amount already awarded should not be mischaracterised as a new penalty.

Conclusion

RERA’s enforcement scheme combines compliance mechanisms with sanctions for disobedience. Effective pleading requires a clear separation of execution, monetary recovery and proceedings for statutory penalty.