Navigating the RERA Execution Process: A Case Study Highlighting Delay Interest Recovery and Physical Possession
- Devesh Saxena
- Feb 10
- 4 min read
For many homebuyers, obtaining a favorable judgment from the Uttar Pradesh Real Estate Regulatory Authority (UPRERA) is only the first half of a long journey. The real challenge often lies in the "Execution" phase—ensuring that the builder actually pays the interest and hands over the property as ordered.
In the matter of Anil Kumar Sagar vs. ATS Realty (NCR144/02/105404/2023), the proceedings offer a comprehensive roadmap of how the Uttar Pradesh Real Estate Regulatory Authority (UPRERA) enforces its mandates when a developer fails to comply.
At S&D Legal Associates, we had the opportunity to assist the complainant throughout the proceedings of the complaint filed before UPRERA, and importantly, during the multi-stage execution process that spanned from the initial complaint in 2023 to the final handover possession in early 2026.
The Challenge of Delayed Possession in Real Estate
It is a common observation in the industry that even after obtaining an Occupancy Certificate (OC), the handover of units can be delayed due to disputes over financial dues. Builders often set conditions for possession that may conflict with the RERA Act, 2016, particularly regarding the payment of delayed possession and the imposition of arbitrary maintenance or holding charges.
As mandated under Section 18(1) of RERA Act, 2016, if a builder/developer delays possession, they are legally required to pay delay interest at the rate of SBI MCLR+1% (the rate presribed under the UP RERA (Agreement for Sale/Lease) Rules, 2018) for every month of delay. However, many developers attempt to bypass this by:
Issuing "Paper Possession" without an Occupancy Certificate (OC).
Charging arbitrary "Holding Charges" to offset their own liabilities.
Forcing buyers to waive their right to delay interest before the registry.
In the present case, our client was faced with a 4-year delay. Here is how our team navigated the legal labyrinth to secure justice for him.
A Procedural Timeline: From Judgment to Execution
The Adjudication of Liability
On September 21, 2023, the UPRERA Bench established the builder's liability vide its decision in the complaint. The project, ATS Allure, was found to be delayed beyond the grace period ending in February 2019. The Authority directed the promoter to provide possession and pay the delay interest at the rate of SBI MCLR + 1%.
Financial Recovery via Recovery Certificate (RC)
When the payment of interest was not forthcoming, the execution moved to the District Administration. Under Section 40 of the RERA Act, a Recovery Certificate dated 07.01.2025 was issued for ₹11,58,663.66. We facilitated the coordination between the Authority and the District Magistrate, resulting in the complainant receiving his full interest dues in two installments by August 2025.
Resolving Disputes on "Unlawful Charges"
A significant hurdle in many handovers is the "Final Demand Note" issued by developers. In this case, the developer's demands for holding and past maintenance charges were contested under Rule 24 of the UP RERA Rules, 2016.
Holding Charges: Regulated at a ceiling of ₹2 per sq. ft. per month on carpet area against the initial demand of the developer calculated at ₹5 per sq. ft. per month on super area.
Maintenance:Â Ruled as not applicable for the period prior to actual possession.
Enforcement Measures: Attachment and the Receiver
The final phase of this matter involved the invocation of Order 21 of the Code of Civil Procedure (CPC). When the registry was not executed despite the complainant clearing revised dues, the Adjudicating Officer took the following steps:
Initiated penalty proceedings under Section 63.
Ordered the attachment of the unit.
Appointed a Receiver to attach and take custody of the property.
Following these administrative actions, the physical possession was finally handed over to the complainant on January 17, 2026.
Key Takeaway: Systematic RERA Execution Process
This case is a testament to the fact that the RERA Act has "teeth" and the RERA execution process is robust enough to handle non-compliance, provided the execution is followed through systematically. Allottees do not have to settle for a builder’s lopsided terms. If your project is delayed, you are entitled to the statutory "delayed interest" as per the RERA Act, regardless of what the builder's "offer of possession" or "demand letter" says. The primary takeaways for those seeking delayed interest and physical possession are:
Persistence in Execution:Â A judgment in the complaint is only the first step; the execution process under the RERA Act is where tangible results are achieved.
Regulatory Ceilings:Â Homebuyers should be aware of the statutory caps on holding charges and interest rates to avoid overpayment during the "Offer of Possession" stage.
The Power to Appoint a "Receiver":Â If a builder refuses to execute the registry or hand over keys of the allotted unit, the RERA Adjudicating Officer has the power to appoint a Receiver to execute the handover by force of law.
Are You Struggling with a Delayed Project?
The successful conclusion of the Anil Kumar Sagar matter was a collaborative effort between a persistent homebuyer and a legal framework designed to balance the scales. At S&D Legal Associates, we believe that while the law provides the tools, it is the homebuyer’s patience and the Authority’s firm approach in the execution proceedings that ultimately delivers the results.
If you are navigating similar complexities regarding your property, understanding these procedural milestones is essential. For further legal insights or assistance with RERA execution matters, you may reach our team.
Don’t wait for the builder to "offer" you justice. Take it.
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