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

Despite lax enforcement, Real Estate Regulatory Authority - Karnataka (RERA-K) Revenue Recovery Certificates (RRCs) have only seen a mere 10% recovery of their value. Measures such as a Standard Operating Procedure (SOP), a dedicated officer, and software development are anticipated to boost the implementation of these orders. RERA-K released a circular on July 28 detailing the SOP, which operationalises Section 40(2) of the RERA Act, 2016.

This provision allows RERA-K 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." The move, welcomed by M.S. Shankar, general secretary of Forum for People’s Collective Efforts, aims to give the Authority more power to attach assets and enforce compliance.

Sixty days after issuing an order, RERA-K must verify compliance by communicating with both the builder and the homebuyer. If the builder fails to comply, the buyer must file a petition on the RERA-K portal for enforcement. In case of non-compliance by the builder, RRCs will be prepared and forwarded for attaching and auctioning properties, including bank accounts.

If the builder continues to defy the order for non-monetary reliefs under Section 40(2) of the RERA Act, the Authority may either enforce the order like a decree or transmit it to a Principal Civil Court. The State government has recently appointed Jayamadhava P., Special Deputy Commissioner, Bengaluru Urban District, to oversee the implementation of RRCs in Bengaluru, streamlining the process and developing software for timely execution.