The Bihar Real Estate Regulatory Authority (Bihar RERA) has launched a special drive to speed up the recovery of money awarded to homebuyers but not paid by defaulting builders.
Acting on the direction of Bihar RERA Chairperson Vivek Kumar Singh, the Authority has initiated faster disposal of certificate cases filed for recovery of dues from promoters under the Bihar and Odisha Public Demands Recovery Act, 1914.
The first major recovery under the special drive was made on August 18, when a defaulting promoter paid ₹13 lakh to homebuyer Md Kashif Yunus after recovery proceedings and police action.
The development is significant because it demonstrates how RERA orders can move beyond merely granting relief on paper and towards the actual recovery and payment of money to homebuyers.
Special Drive to Recover Homebuyers’ Dues
Many homebuyers face a common problem even after obtaining a favourable order from a RERA Authority: the promoter fails to comply with the order.
A direction to refund money or pay compensation does not automatically guarantee that the amount will immediately reach the complainant.
To address this problem, Bihar RERA has started a special drive for faster disposal of certificate cases involving recovery from defaulting builders.
The Authority has also notified senior officers as Certificate Officers, with their courts functioning within the Bihar RERA premises.
This arrangement is intended to help homebuyers pursue recovery proceedings without having to approach another forum after a promoter fails to comply with a RERA order.
Homebuyer Awarded ₹67.64 Lakh in Original RERA Order
The first recovery case involved complainant Md Kashif Yunus.
Yunus had approached Bihar RERA against the builder, following which the Authority passed an order in 2022 directing the promoter to pay a principal amount of ₹67.64 lakh.
However, the builder failed to comply with the RERA order.
The homebuyer subsequently initiated an execution case in the same year.
In 2023, the execution proceedings were disposed of with a direction to institute a certificate case for recovery of the outstanding amount.
Builder Repeatedly Failed to Appear
According to Bihar RERA officials, the promoter repeatedly failed to appear during hearings in the certificate proceedings.
The continued absence prompted the issuance of a warrant.
The promoter was taken into custody by the police on August 18 and produced before the court of Certificate Officer Animesh Pandey.
The development resulted in an immediate recovery arrangement for the complainant.
₹13 Lakh Paid During Recovery Proceedings
During the proceedings, the promoter made a payment of ₹5.80 lakh online to Md Kashif Yunus in court.
The builder also handed over a cheque for ₹7.20 lakh, which has since been encashed.
Together, the complainant received:
₹5.80 lakh through online payment + ₹7.20 lakh through cheque = ₹13 lakh
The promoter also submitted six post-dated cheques for payment of the remaining outstanding amount in six instalments.
The case illustrates how recovery proceedings can create pressure on a defaulting promoter to comply with a RERA order that has remained unpaid.
Another Homebuyer Receives ₹7 Lakh
In another certificate case before the same Certificate Officer, a builder paid ₹7 lakh through cheque to complainant Pawan Kumar Agrawal.
The total outstanding amount in that matter was ₹29.51 lakh.
While the ₹7 lakh payment has been made, proceedings will continue for recovery of:
- The remaining principal amount
- Applicable interest
- Other recoverable dues, if any
The case demonstrates that partial recovery does not automatically bring the proceedings to an end where a substantial balance remains unpaid.
Another Recovery for Homebuyer Piyush Srivastava
In a related case against the same promoter, another homebuyer, Piyush Srivastava, received a cheque of ₹7 lakh.
According to the officials, the promoter had previously refunded ₹27.50 lakh.
The promoter is still required to pay the remaining ₹11 lakh.
Recovery proceedings can therefore continue until the full amount payable under the relevant order is recovered.
Why Certificate Proceedings Matter for Homebuyers
The biggest challenge for many homebuyers is not necessarily obtaining a favourable RERA order.
The more difficult stage can be enforcement.
A homebuyer may obtain an order directing the promoter to:
- Refund the amount paid
- Pay interest
- Pay compensation
- Comply with another monetary direction
But if the promoter ignores the order, the buyer may still struggle to actually receive the money.
Bihar RERA’s decision to establish Certificate Officer courts within the Authority’s premises is therefore important from an enforcement perspective.
It aims to create a more direct mechanism for recovering dues from promoters who fail to voluntarily comply with orders.
From RERA Order to Actual Recovery
The Yunus case provides an example of how the enforcement process can progress.
Step 1: Homebuyer files complaint
The buyer approaches RERA seeking relief against the promoter.
Step 2: RERA passes an order
Bihar RERA directed payment of ₹67.64 lakh to the complainant in 2022.
Step 3: Promoter fails to comply
The builder did not voluntarily make the payment.
Step 4: Execution proceedings begin
The complainant initiated execution proceedings.
Step 5: Certificate case is instituted
A certificate proceeding was initiated for recovery of the outstanding amount.
Step 6: Recovery action intensifies
After repeated non-appearance by the promoter, a warrant was issued.
Step 7: Payment is secured
The promoter was produced before the Certificate Officer and made immediate payment of ₹13 lakh, while also issuing six post-dated cheques for the remaining amount.
This process highlights the importance of effective enforcement mechanisms for ensuring that regulatory orders translate into actual relief.
Bihar RERA Brings Certificate Officers Within Its Premises
A particularly important feature of the Bihar RERA initiative is that senior officers have been notified as Certificate Officers, and their courts are functioning within the Authority’s own premises.
The objective is to make the recovery process easier for homebuyers.
Instead of being forced to approach another forum after obtaining a RERA order and facing non-compliance, the buyer can pursue the recovery mechanism through the structure established within Bihar RERA.
This could potentially reduce:
- Procedural delays
- Multiple forum visits
- Additional litigation
- Administrative hurdles for homebuyers
Stronger Enforcement Can Improve Homebuyer Confidence
The special drive comes at a time when the effectiveness of RERA authorities is increasingly being judged not only by the number of orders passed but also by the actual enforcement of those orders.
For a homebuyer, an order directing a refund of ₹50 lakh or ₹1 crore provides limited practical relief if the promoter simply refuses to pay.
Effective recovery mechanisms are therefore essential to the success of the RERA framework.
The Bihar RERA initiative indicates a stronger focus on the post-order stage, where the regulator seeks to ensure that defaulting promoters do not avoid their financial obligations merely by ignoring an order.
Key Takeaways
Authority: Bihar Real Estate Regulatory Authority
Special initiative: Drive for speedy disposal of certificate recovery cases
Legal mechanism: Bihar and Odisha Public Demands Recovery Act, 1914
First major recovery: ₹13 lakh paid to Md Kashif Yunus
Original RERA award: ₹67.64 lakh principal amount
Action against promoter: Warrant issued after repeated failure to appear
Additional security: Six post-dated cheques for remaining dues
Second case: ₹7 lakh recovered for Pawan Kumar Agrawal against outstanding dues of ₹29.51 lakh
Third related case: Piyush Srivastava received ₹7 lakh, with ₹11 lakh still payable after an earlier refund of ₹27.50 lakh
Major reform: Senior Bihar RERA officers notified as Certificate Officers, with courts functioning within the Authority’s premises
Why This Development Matters
The Bihar RERA initiative could prove important for homebuyers because it focuses on a critical weakness often experienced in real estate disputes: the gap between obtaining an order and receiving the money.
The recovery of ₹13 lakh following certificate proceedings and enforcement action demonstrates that promoters who repeatedly ignore recovery proceedings may face stronger legal consequences.
If the special drive results in faster disposal and more effective recovery of outstanding dues, it could provide significant relief to homebuyers who have already spent years pursuing complaints and execution proceedings.
Ultimately, the strength of a regulatory order lies not only in what it directs but also in whether the homebuyer is actually able to enforce it.
