• Builder has not refunded money even after rera court's order

I put my money in an appartment in Ghaziabad in 2012 by Lakshya RealInfra builders. The project is Lakshya Aquapolis. But even after 8 years, the construction of the tower hasn't started.

I complained to RERA in 2017 and they ruled in my favour, directing the builder to refund the money with interest by December 2018. Now, almost 2 years have passed and the builder hasn't bothered to follow the court orders.

When I asked RERA they said execution order had been sent to the DM for recovering the amount from the builder but still nothing has happened even after 2 years.

I am surprised and dismayed at the legal system here in India. Are consumers so hapless here? All my hard-earned money has been stolen by a builder and the courts can't even get that returned?

What are my options now? Someone said I should approach the Economic Offenders forum, someone said go to NCLT while yet others asked me to approach the Consumer Court.

Please advice as to what I should do now. I have already lost so many years hoping to get my house and it's going to be a huge problem if I have to start another legal case and wait another 10 years or more.

Should I apply in all 3 forums - NCLT, consumer court and econic offences forum? Please advice.
Asked 3 years ago in Property Law
Religion: Hindu

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7 Answers

your remedy is by way of seeking execution of the RERA order

if the RERA authority has already forwarded the matter to the DM for purpose of execution then you have to apply to the DM to expedite the execution process

if the DM does not take steps then you can approach the High Court by filing a writ petition

or in the alternative due to the delay already made by the DM in the execution of the RERA order, you can directly move the HC by filing a writ petition and seek directions against the DM to execute the RERA order in a time bound manner

NCLT, Consumer forum, EOW are not proper forums before which you can go now. Please DO NOT take random advice like this from multiple people. 

If you file a NCLT petition, and it is admitted then there will be an automatic stay against all legal proceedings against the builder and you will then not be able to have the RERA order executed against the builder

before pointing fingers at the legal system, you also have to look into your conduct as to what steps you took after the RERA passed order in your favour?!!! It appears you were sleeping over it for past 2 years and took no legal steps to have that order executed. 

 

Yusuf Rampurawala
Advocate, Mumbai
7510 Answers
79 Consultations

5.0 on 5.0

 

 

 

 

1) In case a developer does not honour the Rera order, it. Is forwarded   to the concerned district magistrate to recover the dues. The district magistrate recovers the money as arrears of land revenue. Money so recovered is deposited in Rera account and from there it is transferred to the beneficiary of RERA order 

2) wait for execution proceedings to be completed 

 

Ajay Sethi
Advocate, Mumbai
94710 Answers
7529 Consultations

5.0 on 5.0

Since an order is already in place its advisable to file writ petition in high court to execute the order. 

Devajyoti Barman
Advocate, Kolkata
22821 Answers
488 Consultations

5.0 on 5.0

Dear Sir

 

sorry to hear your plight and i will advice you what you need to do as i am working on these matters only.

it is surprising that RERA has failed to get your money as in my knowledge UPRERA is working very fast and people are getting money. Anyway if this is the situation then you should try the following strategies :

- move an RTI application about the progress of your case and recovery. ask the name of the official concerned

- send an application to the appealete authority and high court and supreme court that RERA officials are taking huge money (i know that they are taking huge money from builders) from the builders and therefore delaying orders and not executing recovery orders.

 

You have following forums to go

Economic offence wing: you can certainly go there but i do not think that they will help you much but there is no harm in filing a complaint. they will at least pressurize the builder. and you will not spend much money in this work.

NCLT: this forum is useless for you as they will not entertain your petition due to change in law .

Consumer Court: Yes you can go here too but it is a time taking process. Anyway if any lawyer agrees on small amount then you can file this too and it has good powers to get your money. but if a lawyer is asking huge amount for filing your case then do it yourself. since proceedings are online mostly therefore it is easier these days.

Civil Court: This is the best forum for you in case RERA strategies do not work. This is the most effective method. it may take a little longer but it provides maximum chances to get your money. (file under order 37 CPC)

Criminal Complaint in Court: File this also to pressurize them but it is optional and you can avoid if it is costly for you.

 

I will suggest you to pressurise them first with complaints of officials and RTI. simultaneously file case in civil court if you feel that RERA is not moving.

RTI power is undermined but it has some psychological effect also. Use it to pressurize the officials and i wish you get your money soon.

good luck 

Gopender
Advocate, New Delhi
384 Answers

4.9 on 5.0

- Since RERA has already passed judgement in your favour , then for the execution of the same file an execution petition before the same court of RERA . 

- Otherwise file a WRIT petition in High Court. 

Mohammed Shahzad
Advocate, Delhi
13214 Answers
198 Consultations

5.0 on 5.0

The Promoter must deposit/ pay the money within 30 days otherwise the UP-RERA will issue Recovery Certificate against the builder to be executed by the Collector where the property(ies) of the promoter is/ are situated

So, if the promoter is not refunding the amount as ordered by the UP-RERA despite the passage of 45 days from the date of order of payment  then an allottee should take the following steps:

File the Execution request with the UP RERA at their portal. 

  1. The UP RERA will issue a notice to the builder to comply with the order within 30 days or else recovery orders shall be issued against it.
  2. The Promoter must deposit/ pay the money within 30 days otherwise the UP-RERA will issue Recovery Certificate against the builder to be executed by the Collector where the property(ies) of the promoter is/ are situated.
  3. On receiving such orders from the UPRERA, the Collector issues the recovery citation and has the power to seize the bank accounts of the Promoter and further auction the properties of the builder by issuing a public notice.
  4. The Collector has to follow the process of recovery of dues as arrears of land revenue as provided in the U.P. Revenue Code 2006 and U.P. Revenue Code Rules  2016.
  5. In case the Collector is not exercising its powers and is delay dallying the process of recovery then the allottee has the remedy to approach the Hon’ble High Court for a writ of mandamus against the Collector praying for order within a limited period of time.

The Allottee should try to get the office and commercial properties of the Promoter for sealing and auction purposes.

In city like Noida, where the land is on lease and it actually belongs to the NOIDA Authority, it is more practical to put the commercial properties of the Promoter on auction by the Collector and UPRERA.

The UPRERA Should also in there recovery citations ask the Collector to auction the commercial and office of the Promoters.  

T Kalaiselvan
Advocate, Vellore
84911 Answers
2194 Consultations

5.0 on 5.0

You should file for execution. If already filed then a recovery certificate should be issued on your further complaint. Going to these forums cannot help you as your case has been decided in your favour.

Rahul Mishra
Advocate, Lucknow
14088 Answers
65 Consultations

5.0 on 5.0

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