In a decisive move to enforce homebuyer rights and regulatory compliance, the Punjab Real Estate Regulatory Authority has issued a Recovery Certificate against Sushma Builders for failing to comply with earlier orders relating to compensation and possession in a housing dispute.
This action highlights the growing use of Section 40 of the Real Estate (Regulation and Development) Act, 2016, which empowers authorities to recover dues as arrears of land revenue.
Case Background: Homebuyer Left Waiting Despite Full Payment
The case was initiated by Gurmeet Singh Chawla, a resident of Mohali, who had booked a flat in the Sushma Valencia project in March 2019 for ₹66.98 lakh.
Key facts of the case:
Possession was promised by December 29, 2021
The buyer paid the entire consideration amount on time
Repeated follow-ups for possession went unanswered
With no response from the developer, the complainant approached Punjab RERA in December 2023.
RERA’s Original Order: Compensation and Possession
After hearing the matter, Punjab RERA directed the developer to:
Pay ₹25.42 lakh as interest on the deposited amount
Issue a valid offer of possession within two months
However, the developer failed to comply with these directions, leading to further legal action.
Execution Proceedings: Escalation Due to Non-Compliance
Due to continued non-compliance, the complainant filed an execution application in October 2025.
Following this:
The recoverable amount increased to ₹27.82 lakh (including interest)
RERA escalated the matter to district authorities
This led to the issuance of a Recovery Certificate to the Mohali District Collector.
Section 40 of RERA: Powerful Recovery Mechanism
Under Section 40 of the RERA Act:
Unpaid compensation, interest, or penalties can be recovered as land revenue arrears
District authorities are empowered to enforce recovery
Developers’ assets can be attached, seized, and auctioned
This provision ensures that RERA orders are not merely advisory but enforceable.
Role of District Administration
With the Recovery Certificate issued:
The Deputy Commissioner-cum-District Collector will initiate recovery proceedings
Assets of the developer may be attached if payment is not made
Recovery will be treated as government dues, ensuring priority enforcement
This step significantly strengthens the execution of RERA orders.
Impact on Homebuyers: Strengthening Enforcement
This case sends a strong message that:
Developers cannot ignore RERA orders without consequences
Homebuyers can pursue execution through legal mechanisms
Recovery through land revenue process ensures faster enforcement
It also boosts confidence among buyers that legal remedies under RERA are effective.
Why This Case is useful for the Real Estate Sector
The ruling demonstrates:
Shift from adjudication to strict enforcement
Accountability of developers for delay and non-compliance
Strengthening of execution framework under RERA
Such actions are critical in addressing one of the biggest concerns in the sector — delay in enforcement of orders.
Conclusion: A Strong Message to Defaulting Developers
The issuance of a Recovery Certificate by Punjab RERA reinforces the principle that non-compliance with regulatory orders will attract serious consequences. By invoking Section 40, the Authority has ensured that homebuyers are not left helpless even after winning their cases.
For developers, this serves as a clear warning to adhere strictly to timelines and legal obligations. For homebuyers, it is a reminder that RERA provides not just relief, but also enforceable remedies.
