• Devesh Saxena

Amount recovered by D.M. in compliance of RERA RC, after High Court issues contempt notice.

Updated: Apr 7

After the much-required intervention of Hon'ble Allahabad High Court, District Authorities in Gautam Budh Nagar, Uttar Pradesh now seem to be making active efforts for ensuring time-bound recoveries from the developer/promoter companies in pursuance of the recovery certificates issued by Uttar Pradesh Real Estate Regulatory Authority. This is a welcome move for the aggrieved homebuyers who have been waiting patiently to receive their refund amount from the developer/promoter companies in case of stuck/delayed projects.


The matter pertains to the execution of a Recovery Certificate issued by the Real Estate Regulatory Authority, Gautam Budh Nagar (UP RERA) in favour of an allottee. The said execution had to be carried out by the District Magistrate, Gautam Nagar, who was responsible to recover the amount due to the allottee from the developer/promoter as arrears of land revenue. However, even after several years had passed since the issuance of the Recovery Certificate, no recovery was made by the District Magistrate, who was sitting tight over the recovery process and had failed to carry out the same efficiently, in clear violation of the mandates laid down under the RERA Act, 2016. Thus, District Magistrate was bound by law to recover the amount as arrears of land revenue and he was acting unlawfully by not executing the Recovery Certificate issued by the UP RERA.


Due to the said deliberate inaction adopted by the District Magistrate, the aggrieved allottee filed a Writ Petition before Hon’ble Allahabad High Court, wherein the direction was issued to District Magistrate, Gautam Budh Nagar to execute the Recovery Certificate dated to its logical end, as expeditiously as possible, preferably, within a period of two months from the date of receipt of the copy of the said order.

 

Read Orders: DM to Execute the Recovery Certificates in two months: Allahabad High Court

 

However, even after the passage of several months from the date of the said order passed by the Hon’ble Allahabad High Court in the said Writ Petition, no action, whatsoever, was taken by the District Magistrate, Gautam Budh Nagar in order to execute the Recovery Certificate issued by UP RERA. Thus, the District Magistrate deliberately flouted and disobeyed the aforesaid order passed by the Hon'ble Allahabad High Court.


Ultimately, left with no choice, the aggrieved homebuyer filed a Contempt Petition before Allahabad High Court, requesting the Court to summon the District Magistrate, Gautam Budh Nagar in person and further to initiate contempt proceedings against him under the Contempt of Courts Act for his willful disobedience to the order passed by this Hon’ble Court in Writ Petition.


Hon'ble Allahabad High Court after hearing the said Contempt Petition found that a prima facie of contempt is made out and issued notice to the District Magistrate, Gautam Budh Nagar, and directed him to explain as to why the contempt proceedings may not be initiated against him for the alleged violation of the judgment and order of Writ Court.

 

Read Orders: Contempt Notice issued to DM for failing to execute the Recovery Certificate issued by RERA.

 

After the issuance of the aforesaid notice by the Hon'ble Allahabad High Court, District Magistrate filed a Counter Affidavit whereby he informed the Hon'ble Court that recovery process is undergoing in the case of the Petitioner/Applicant, and further brought on record a bank draft consisting of the amount recovered as a result of partial recovery made in pursuance of the Recovery Certificate issued by RERA and the order passed by the Hon'ble Allahabad High Court. He further requested some additional time to complete the aforesaid recovery process and recover the balance amount in favour of the allottee.


Upon perusal of the said Counter Affidavit filed by the District Magistrate, Hon'ble High Court granted two months further time to make the recovery of the balance amount and to file compliance affidavit by the next date fixed. Further, as a word of caution, it was also directed to the District Magistrate that in case the compliance affidavit is not filed by the next date fixed, then he shall remain present before this Court.

(The Writ Petition, as well as Contempt Petition on behalf of the Allottee, were filed and argued by S&D Legal Associates in association with its Partners and Associates based in Prayagraj)


 

Read Order:


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