With new SOP and software, revenue recovery in RERA cases expected to pick up pace

Lax enforcement of revenue recovery orders issued by Real Estate Regulatory Authority – Karnataka (RERA-K) — only around 10% of the value of the Revenue Recovery Certificates (RRCs) have been recovered till date — has been a long-standing problem aired by homebuyers. A host of measures, including a Standard Operating Procedure (SOP) which empowers RERA-K to implement its orders, a dedicated officer and a software being developed to implement RRCs in Bengaluru, is expected to lead to better implementation of these orders. 

Operationalising Section 40(2)

RERA-K has recently issued a circular on July 28 laying down a SOP for revenue recovery, a copy of which The Hindu has accessed. The SOP operationalises Section 40(2) of RERA Act, 2016, which empowers RERA to enforce its orders “in the manner as if it were a decree or order made by the principal civil court of the original jurisdiction in a suit”, a provision on the books but almost never used. It is hoped that this will empower RERA-K implement its orders. 

M.S. Shankar, general secretary, Forum for People’s Collective Efforts, welcomed operationalising Section 40 enforcement of RERA orders in the circular, saying it will give more teeth to the Authority. “RRCs cannot remain passive requests sitting in administrative limbo. The Authority must routinely invoke its powers as a Principal Civil Court under Section 40(2) of RERA Act, 2016, to directly attach assets and compel compliance,” he said. 

SOP 

Sixty days after passing of an order by the Authority, it shall verify compliance by sending communication to both the builder and the homebuyer. In case of failure of the builder to fully comply with the order, the complainant homebuyer has to file a petition on the RERA-K portal seeking enforcement of the RRC. Following this, the builder will be given two weeks’ time to comply with the order or file its response and will again be given two weeks time to comply. 

If the builder still fails to comply, the builder will be directed to file an affidavit disclosing and detailing all its moveable and immoveable assets, including bank accounts and other investments, within a period of two weeks. The complainant/homebuyer will also be given an opportunity to submit assets of the builder known to them. In case of non-compliance even at this stage, RRC will be prepared and forwarded for attaching and auctioning of the moveable and immoveable properties, including bank accounts. 

If the builder fails to comply the order for non-monetary reliefs covered under Section 40 (2) of the RERA Act, 2016, the Authority may either enforce the order as if it were a decree or order made by a principal civil court in a suit, or transmit the order to the Principal Civil Court having jurisdiction over the builder. 

Dedicated officer, software 

The State government has recently made Jayamadhava P., Special Deputy Commissioner, Bengaluru Urban District, in-charge of implementation of RRCs in Bengaluru, the district with the highest number of RRCs. “We are streamlining the process of implementation of RRCs, including developing a dedicated software and a portal for the same. This will remove inordinate delays and ensure they are implemented within the 3.5 months’ time needed to implement any RRC, giving due time to the builders to respond and comply as per the rules. This will bring in more transparency and help the complainant homebuyer to also follow up on the process of implementation of RRCs,” he said.