Section 40 of RERA : Section 40: Recovery Of Interest Or Penalty Or Compensation And Enforcement Of Order, Etc

Explanation using Example

Imagine a scenario where a homebuyer, Mrs. Sharma, has purchased an apartment from a real estate developer, Sunshine Builders. The developer promised to deliver the apartment within 24 months, but failed to do so. Mrs. Sharma files a complaint with the Real Estate Regulatory Authority (RERA) claiming delay in possession and seeking compensation for the same. The RERA adjudicating officer rules in favor of Mrs. Sharma and orders Sunshine Builders to pay a penalty and compensation for the delay.

Despite the order, Sunshine Builders does not comply with the payment of the penalty or compensation. As per Section 40(1) of the Real Estate (Regulation and Development) Act, 2016, this unpaid amount by Sunshine Builders can be recovered in the same manner as arrears of land revenue, which means the authorities have the power to recover the amount similar to how they would collect unpaid government dues.

Additionally, if Sunshine Builders were directed to cease construction on an unauthorized part of the project and they ignored this directive, as per Section 40(2), the order to stop construction would be enforced using the prescribed methods of enforcement under the Act, ensuring that the developer complies with the legal directive.