Recovery Of RERA Compensation Cannot Be Put On Hold Due To Subsequent Vesting Of Land In State: HP High Court

The Himachal Pradesh High Court has held that recovery proceedings initiated pursuant to final order of the Real Estate Regulatory Authority cannot be stalled merely because the project land subsequently vested in the State Government under separate revenue proceedings.The Court further clarified that once a RERA order granting monetary relief attained finality, authorities were bound to enforce it through the statutory recovery mechanisms available under revenue law.Justice Jyotsna Rewal Dua remarked that: “Merely on the ground that land with respect to which the petitioner had claimed redressal of his grievance before RERA has now been ordered to be vested in the State Government, the recovery proceedings for implementing the final order passed by RERA… cannot be put on hold/stopped.”The Court further stated that: “Where statute prescribes explicit procedure for the recovery of arrears, such procedure must be scrupulously adhered to in its entirety. No deviation is permissible.”Background:The petitioner had booked a housing unit in a project named “Aamoksh @ Kasauli” for a total consideration of ₹88,00,000/-. Thereafter, in 2015 an agreement to sell was executed, and the petitioner paid ₹78,00,491/-. However the possession of unit was never delivered.Aggrieved, the petitioner approached the Himachal Pradesh Real Estate Regulatory Authority.In 2021, the complaint was allowed by RERA and the respondent promoters were directed to return/refund the amount to the Complainants. However, the promoters failed to comply with the order and Himachal Pradesh Real Estate Regulatory authority issued recover order under Section 40(1) of the RERA Act (which provides that compensation, penalty or interest imposed by RERA can be recovered as arrears of land revenue).Thereafter, proceedings were initated by Tehsildar Solan, but were later put on hold in September, 2023 on the ground that in separate proceedings under Section 118 of the H.P. Tenancy & Land Reforms Act, the land in question had been ordered to vest in the State Government by the District Collector. Aggrieved, the petitioner filed writ petition before the himachal pradesh high court, seeking direction to ensure execution of the RERA order.Examining section 40 of the RERA Act, the court reiterated that “If a promoter… fails to pay any interest or penalty or compensation… it shall be recoverable… as an arrears of land revenue.”The Court concluded that the RERA order had attained finality and was to be enforced strictly in accordance with law.Case Name: Pawan Basant Borle v/s Union of India & others Case No.: CWP No. 1153 of 2026Date of Decision: 25.02.2026For the petitioner: Mr. N.K. Bhalla, Advocate For the Respondents: Ms. Sheetal Vyas, CGC, for respondent No.1Mr. Y.P.S. Dhaulta, Additional Advocate General for respondents No.2 & 3. Mr. Raman Ravi Verma, Advocate, for respondent No.4.Click Here To Read/Download Order

Recovery Of RERA Compensation Cannot Be Put On Hold Due To Subsequent Vesting Of Land In State: HP High Court

Mehak Aggarwal

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