• Nayan Saini

H.C. directs the DM to execute Recovery Certificate (RC) issued by RERA - DM Complies in 4 weeks.

Updated: Feb 3, 2021

Expediting the recovery process pursuant to the issuance of Recovery Certificates issued by RERA is a grave concern for many homebuyers, as the authority responsible and entrusted with the task of completing and executing the recovery, i.e., District Magistrates are usually causal and lackadaisical in their approach to complete the recovery process in a specific period of time, and generally, the homebuyers have to wait for years to receive their due share of refund or compensation as issued by RERA.

Proceedings before Allahabad High Court:

However, recently, the Hon'ble Allahabad High Court has given relief to one of such Homebuyers of a prominent builder group in NOIDA who was aggrieved by the inaction adopted by the District Magistrate, Gautam Budh Nagar in completing the recovery process in pursuance of the Recovery Certificate issued by RERA, Gautam Budh Nagar, despite the fact that more than 11 months had passed since the issuance of the same.

A writ petition was filed and argued by our Managing Partner, Adv. Devesh Saxena, seeking direction from the Hon'ble High Court against the DM to expedite the recovery process in pursuance of the Recovery Certificate issued by RERA. The said writ petition was disposed of on the very first date of hearing itself, and the Hon'ble Court was pleased to pass the following orders:

"This writ petition is disposed of with a direction to the District Magistrate, Gautam Budh Nagar to execute the recovery certificate dated 27.02.2020 to its logical conclusion as expeditiously as possible preferably within two months from the date of production of a copy of this order.
Compliance report be submitted before us in chambers on 15.03.2021."

Read Order:

Download PDF • 28KB

Compliance made by District Magistrate:

In pursuance of the aforesaid order dated 06.01.2020 passed by the Hon'ble Allahabad High Court, the District Magistrate expedited the entire recovery process in an unprecedented manner and recovery of the entire refund amount of Rs. 60 Lacs, as directed by RERA (including the interest amount) was made from the builder and duly transferred to the bank account of the Petitioner on 03.02.2021, i.e., in less than 4 weeks from the date of the order.

Such prompt action on behalf of the DM and other land revenue authorities is evident of the fact that the realization of the recovery amount in pursuance of RC issued by RERA can also be made in an expeditious manner if the authorities show enough will power and character. However, the effort shown by the authorities in the present matter is truly commendable and deserves every bit of praise and acknowledgment.

Testimonial from our Valued Client:

"Mr. Saxena is very knowledgeable of all real estate laws. He and his entire team at Allahabad guided me on every step. Builder took way long to deliver the apartment. He got me not just the refund but also 'with interest'. His firm, S&D Legal Associates and partners can fight your case at all levels, including High Court, which is always a plus, because you don't need to change lawyers for RERA and High Court. He himself and his team are very much approachable on calls and Whatsapp."

- Mr. Ankit Gera (Linkedin Profile)

[Picture Courtesy: moneycontrol.com]