In a significant ruling that reinforces the separation of administrative powers under the Real Estate (Regulation and Development) Act, 2016 (RERA), the Punjab and Haryana High Court on April 24, 2025, struck down a Haryana government notification that granted recovery powers to the officials of the Haryana Real Estate Regulatory Authority (H-RERA).
The court held that H-RERA officials can conduct inquiries and determine compensation but cannot enforce recovery of dues such as penalties, interest, or compensation amounts. These recovery actions must be executed through the appropriate revenue officers in accordance with the Haryana Land Revenue Act, 1887, and not directly by H-RERA.
The Haryana government had issued a notification on May 11, 2024, empowering H-RERA officials with collector-like powers to recover amounts directly from errant developers and allottees. The notification was issued during the tenure of Chief Minister Nayab Saini, and the government justified this move by citing administrative convenience and faster enforcement.
However, the move was legally challenged by a real estate company in June 2024, which argued that RERA does not allow its officials to act as recovery officers. According to the petitioner, any outstanding amount must be recovered as arrears of land revenue, and not as court-enforceable decrees.
Key Observations by the High Court
A division bench comprising Justice Sureshwar Thakur and Justice HS Grewal ruled the state notification to be ultra vires the RERA Act, 2016. The bench made the following key observations:
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H-RERA officials’ powers are limited to inquiry, adjudication, and determination of compensation or interest. They cannot execute recovery as if enforcing a civil court decree.
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The notification violates the legal structure of the RERA Act, which clearly delineates powers between adjudicating and executing authorities.
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The state’s justification using Section 27 of the Haryana Land Revenue Act, 1887, was dismissed, with the court asserting that rule-making and adjudication must remain distinct and legally defined.
The court also overruled an earlier single-bench judgment that allowed RERA orders to be executed like civil court decrees, clarifying that enforcement must follow established revenue recovery procedures.
With this judgment, the Haryana government must now redesign its recovery framework. It has been advised to amend the rules and appoint appropriate revenue officers for the execution of recoveries. H-RERA, in turn, must restrict itself to adjudication and coordinate with district collectors or revenue officers for recovery.
This ruling reinforces the checks and balances provided under RERA and prevents any single authority from overstepping its defined powers. Legal experts have welcomed the decision as a move towards ensuring compliance with federal legal structures.
