In short. When a builder ignores a RERA order, apply to the same authority for execution. It can issue a recovery certificate to the district collector to recover the amount as arrears of land revenue under section 40(1), execute the order as a civil decree under section 40(2) and the state rules, and impose a penalty of up to 5 per cent of the project cost under section 63.
This post starts where the complaint ends: you hold an order for a refund, delay interest or compensation, the compliance period has passed and the builder has neither paid nor appealed with a deposit. It explains the recovery tools RERA gives you, how they work in Delhi, Uttar Pradesh and Haryana, what to collect before applying, why recovery certificates stall and what you can do about it, and what changes if the builder goes into insolvency. How the order was obtained is covered in filing a RERA complaint in Delhi, UP and Haryana.
Recovery is the stage where buyers most often lose patience, and also the stage where steady, well-documented follow-up makes the most difference. For the wider range of builder disputes we deal with, see real estate and infrastructure laws.
- Recovery provision
- Section 40(1), RERA: arrears of land revenue
- Execution provision
- Section 40(2), RERA, with state rules
- Penalty for non-compliance
- Section 63: up to 5% of estimated project cost
- Tribunal orders ignored
- Section 64: up to 3 years or fine up to 10% of project cost
- Who recovers
- District collector, on the authority's recovery certificate
- If builder is in insolvency
- Moratorium stops recovery; claim before the resolution professional
What can you do if the builder does not pay after a RERA order?
Apply to the RERA authority that passed the order, asking it to enforce the order. Section 40(1) of RERA says that if a promoter fails to pay any interest, penalty or compensation imposed on it, the amount is recoverable in the manner prescribed as arrears of land revenue. Section 40(2) says that if any person fails to comply with an order or direction of the authority, adjudicating officer or Appellate Tribunal, it shall be enforced in the manner prescribed by the state rules.
In practice that gives you three tools. The first is a recovery certificate: the authority certifies the amount due and sends it to the collector of the district, who recovers it using the powers of the state's land revenue law, including attachment and sale of property. The second is execution under the state rules, where the adjudicating officer or the authority enforces the order as if it were a decree of a civil court, or sends it to a civil court for execution. The third is pressure: a daily penalty under section 63 on a builder who ignores the authority's orders.
None of these starts on its own. An order that says "pay within 45 days" or "pay within 90 days" is not followed up by the authority unless you ask. The day after the compliance period ends, you should be ready to apply.
The provisions that govern recovery of a RERA order
Section 40(1), RERA
Unpaid interest, penalty or compensation is recoverable from the promoter, allottee or agent as arrears of land revenue, in the manner the state rules prescribe. In practice authorities issue recovery certificates for the total amount ordered, including the principal refund.
Section 40(2), RERA
Any order or direction of the authority, adjudicating officer or Tribunal that is not complied with is enforced as the rules prescribe. Haryana's rule 27, for example, provides for execution by the adjudicating officer as if the order were a civil court decree, with power to send it to a civil court.
Section 63, RERA
A promoter who fails to comply with the authority's orders or directions is liable to a penalty for every day of default, which may add up to 5 per cent of the estimated cost of the project. The penalty goes to the government, not to you, but it raises the cost of ignoring the order.
Section 64, RERA
A promoter who fails to comply with orders of the Appellate Tribunal is punishable with imprisonment of up to three years, or a daily fine that may add up to 10 per cent of the estimated project cost, or both.
Section 43(5), RERA
A promoter appealing to the Tribunal must first deposit at least 30 per cent of any penalty, or the total amount payable to the allottee with interest and compensation, or both. When the appeal fails, the allottee applies for release of that deposit.
Your recovery options at a glance
These can be used together. Most buyers start with the first two and add the others when the builder keeps stalling.
| Remedy | Where you apply | What it does | When it helps most |
|---|---|---|---|
| Recovery certificate, section 40(1) | The RERA authority, which sends it to the district collector | Collector recovers as arrears of land revenue: attachment of accounts, sealing and sale of property | Builder has land, unsold units or bank accounts in the district |
| Execution as a decree, section 40(2) and state rules | Adjudicating officer or authority; may be sent to the civil court | Attachment and sale under civil procedure; orders directly against the judgment debtor | Haryana and other states where the rules provide execution petitions |
| Penalty, section 63 | The RERA authority | Daily penalty up to 5% of project cost | Builder is solvent but simply ignoring orders |
| Tribunal non-compliance, section 64 | Appellate Tribunal | Imprisonment up to 3 years or fine up to 10% of project cost | Builder lost its appeal and still does not pay |
| Release of appeal deposit, section 43(5) | Appellate Tribunal | Deposited amount paid out to the allottee | Builder appealed and deposited, and the appeal is dismissed |
| Claim in insolvency | Resolution professional | Your amount is admitted as a financial debt in the CIRP | Insolvency against the builder has been admitted |
How does a RERA recovery certificate work in UP?
In Uttar Pradesh, once the builder fails to pay within the time in the order, the allottee applies to UP RERA, which issues a recovery certificate to the collector (the District Magistrate) of the district concerned. For most Noida and Greater Noida projects that is Gautam Buddh Nagar; for Ghaziabad projects, Ghaziabad. The collector then recovers the amount as arrears of land revenue under the state's revenue law, which allows attachment of bank accounts, sealing of offices and attachment and auction of property, including unsold flats.
UP RERA has issued recovery certificates on a large scale. Figures reported in September 2023 put the number issued since 2017 at more than 8,500, worth roughly ₹3,000 crore, of which only about a third by value had been recovered or settled by then. Large amounts are often recovered in instalments, and the collector's office deposits the money for transfer to the buyers.
Under a revised procedure issued in September 2024, once the recovered money is received, UP RERA asks the allottee by email for a notarised affidavit on ₹10 non-judicial stamp paper, giving bank account details, the amounts already received from the promoter, information about any court injunction and any home loan, with an undertaking to repay the bank. The original affidavit goes to the Lucknow headquarters or the Greater Noida office, a scanned copy is uploaded through the allottee's login, and payment follows. The affidavit is needed once, with the first instalment.
How is a RERA order executed in Haryana?
Haryana has gone further down the decree route. Rule 27 of the Haryana RERA Rules 2017 provides that orders of the authority, adjudicating officer or Tribunal are enforced by the adjudicating officer as if they were decrees of a civil court, and that if the authority cannot execute an order it may send it to a civil court. Haryana RERA, Gurugram, has regulations on the adjudication of execution petitions, made in 2019, which set out the format.
Under those regulations the execution petition sets out brief facts, the operative part of the order to be executed, an execution proforma, an affidavit, a list of assets of the company and its directors, a calculation sheet of the amount due, a certified copy of the order and the prescribed fee. The petition is scrutinised, defects must be cured within 15 days, and notice is ordinarily given to the builder with 21 days to respond. Adjournments are discouraged and may carry costs.
Haryana orders typically give the builder 90 days to pay and say interest continues until realisation. Recovery as arrears of land revenue through the collector remains available under section 40(1) alongside the execution petition, and the authority can add penalties for non-compliance.
What about Delhi RERA orders?
Delhi works on the same statutory base. An allottee whose Delhi RERA order is not complied with applies to the authority, which can issue a recovery certificate to the revenue authorities of the district concerned for recovery as arrears of land revenue, take up execution under the Delhi rules, and impose penalty under section 63. Check the current procedure and format on the Delhi RERA portal before filing, because procedural circulars change.
Delhi has fewer large group housing projects than Noida or Gurugram, and many Delhi disputes involve builder floors, redevelopment projects and smaller promoters. With smaller promoters, the assets that matter are often the builder's other properties and the directors' or partners' own holdings, which makes a careful asset search more important than it is against a large listed developer.
What to collect before applying for execution or a recovery certificate
The authority acts on what you give it. A bare application saying "the builder has not paid" moves slowly.
The order
- Certified or signed copy of the order, with the date it was uploaded
- Any order of the Appellate Tribunal in the builder's appeal
- Proof that the compliance period has passed
The amount
- Calculation sheet: principal, interest to the date of application, and interest per day thereafter
- Details of any part payment received from the builder
- Home loan statement, if the bank is to be paid first
The builder's assets
- Unsold units in the project, from the builder's quarterly updates on the RERA portal
- Other projects of the same promoter and group companies
- Bank accounts named on receipts, demand letters and the RERA registration
- Directors and registered office from the company's public filings with the ROC
Formal papers
- Execution application or petition in the format the authority uses
- Affidavit verifying the facts
- Vakalatnama or authorisation, if represented
- Fee, where prescribed
Getting paid after a RERA order, step by step
Note the compliance date
Read the order for the period allowed, commonly 45 or 90 days from the order or its upload, and diarise the last day. Also note whether the builder has filed an appeal; the Tribunal's records or the builder's lawyer will tell you.
Send a short reminder
Write to the builder once, attaching the order and your bank details, asking for payment by a fixed date. Some builders pay at this stage to avoid a recovery certificate, and the letter is useful evidence of default.
Apply to the authority
File the execution application or request for a recovery certificate with the calculation sheet and the asset details you have found. In Haryana, use the execution petition format; in UP, apply through the complaint record for issue of a recovery certificate.
Follow the certificate to the collector
Once a recovery certificate is issued, find out which collector's office it has gone to and the file or case number there. Recovery certificates move faster when someone keeps asking about them, with copies of the asset details.
Ask for penalty if the builder still ignores the order
Apply under section 63 for a daily penalty. If the builder lost an appeal before the Tribunal and still does not pay, section 64 applies.
Complete the payout formalities
When money is recovered, complete the affidavit or bank details the authority asks for, and make sure your home loan lender's dues are handled as the order directs.
Why do recovery certificates get stuck, and what can you do?
Recovery certificates stall for predictable reasons. The builder's bank accounts are empty or have been changed. Its land is mortgaged to a lender whose charge comes first. Unsold units have been sold or mortgaged since the order. The collector's office handles hundreds of certificates against the same group of builders and acts on those where it has something to attach. And some builders obtain a stay from a higher forum, which stops recovery until it is lifted.
When Advocate B.K. Singh's office follows up a recovery certificate, the work that most often moves it is giving the collector something specific to attach: the numbers of unsold flats in a named tower, a bank account the builder is currently collecting into, a plot held by a group company. A certificate with a list of assets is a task the revenue staff can complete; a certificate with only an amount is one more file in the pile.
If a collector's office does nothing on a certificate for months, write to it with the details, and then to the authority, which can call for a report on the status of its certificates. Where there is still no action, a writ petition before the High Court asking for a direction to the collector to act on the certificate within a fixed time is an option. It is a step to take with the paperwork in order, after the ordinary follow-up has failed.
A made-up example: a refund order in Greater Noida
Here's a made-up example. Neha obtained a UP RERA order in March 2026 directing the builder of a stalled Greater Noida project to refund ₹58 lakh with interest at the prescribed rate from the date of each payment, within 45 days. The builder did not pay and did not appeal. In May she applied for a recovery certificate, attaching a calculation sheet showing about ₹81 lakh due with interest to that date.
Before applying, she downloaded the project's latest quarterly update from the UP RERA portal, which listed 140 unsold flats in two towers, and found from the builder's demand letters the account into which it was still collecting instalments from other buyers. She gave both to the authority, and later to the collector's office in Gautam Buddh Nagar when the certificate reached it.
The collector's office attached the collection account and issued notice proposing to auction a set of unsold flats. The builder then offered to pay in four monthly instalments. The money came through the collector's office, and UP RERA asked Neha for the affidavit with her bank details and her loan information. Her bank's outstanding was cleared first from the first instalment, as her order directed. Not every case goes this smoothly, but the asset details made the difference between an active file and a dormant one.
Can you recover the RERA amount from the builder's directors?
Usually not directly. Where the promoter is a company, the order is against the company, and directors are not personally liable for the company's debts just because they are directors. The collector and the adjudicating officer attach the company's assets, not the directors' homes.
Directors become personally exposed in narrower situations: where the order itself is passed against them, where they gave personal guarantees, where the promoter is a partnership or proprietorship rather than a company, or where non-compliance with a Tribunal order attracts punishment under section 64, which is personal. Section 69 of RERA makes the officers in charge of a company liable for offences committed by it. The Haryana execution format asks for the assets of the company and its directors, which shows the authority wants the full picture, but personal recovery from directors still needs a legal basis in the particular case.
The builder appealed: when do you get the deposited money?
If the builder appealed to the Real Estate Appellate Tribunal, section 43(5) required it to deposit the amount ordered, including interest and compensation, before the appeal could be heard. That deposit is your security. When the appeal is dismissed, or withdrawn, apply to the Tribunal for release of the deposit to you, with any interest earned on it, and then pursue the balance, if any, through the authority.
If the builder appeals without depositing, the Tribunal will not hear the appeal, and the order remains enforceable. Builders sometimes file an appeal and then seek time to deposit, using the delay to stall recovery; oppose such requests and keep the execution application moving in the meantime. The appeal stage is covered in detail in our post on appeals to the RERA Appellate Tribunal and the deposit rule. A further appeal from the Tribunal lies to the High Court under section 58, within 60 days, only on substantial questions of law.
What happens to your RERA order if the builder goes into insolvency?
Recovery stops. Once the NCLT admits an insolvency application against the builder company, the moratorium under section 14 of the Insolvency and Bankruptcy Code bars the continuation of proceedings and the execution of any order against it, including RERA recovery certificates and execution petitions. Money not recovered before admission has to be claimed in the corporate insolvency resolution process.
Homebuyers are financial creditors under the Code. You file your claim with the resolution professional, usually in the form prescribed for creditors in a class, attaching your agreement, payment record and the RERA order. The RERA order is strong evidence of what is owed, but how much you finally receive depends on the resolution plan approved by the Committee of Creditors and the NCLT. The Insolvency and Bankruptcy Code (Amendment) Act 2026 has made changes to the process, so check the current position for your project; the options are explained in builder under insolvency: what homebuyers can do, and our insolvency practice in Delhi page covers NCLT procedure.
This is why speed matters at the recovery stage. A buyer whose certificate is acted on before admission may be paid in full; a buyer who waits joins the class of creditors and takes what the plan gives.
Should you accept a settlement or instalment offer?
Often, yes, if it is recorded properly. Builders facing attachment frequently offer to pay in instalments, or to give an alternative unit instead of money. An instalment plan that clears the amount within a few months, with interest for the period, is usually better than a contested auction that may take a year. Put the terms before the authority or the collector so that they are recorded and default can be acted on immediately.
Be cautious about offers that convert your money order back into a promise of a flat, or that waive interest in exchange for a quick part payment. Ask what the builder is actually giving, by when, and what happens if it fails. If the alternative unit has no occupancy certificate, you may be swapping a court order for a new delay complaint.
Mistakes that slow down recovery
- Waiting after the compliance period. Every month of delay gives the builder time to move money and sell unsold units, and brings insolvency closer.
- Applying without asset details. A recovery certificate with a list of attachable assets moves; one without them waits.
- Losing track of the certificate. Know which collector's office has it and its case number, and follow up in writing.
- Ignoring the builder's appeal. If an appeal is filed, check whether the deposit was made and oppose any extension of time.
- Filing a fresh consumer complaint for the same amount. You already have an order; a second case for the same relief will be objected to. If you have a consumer order instead, the route is different, as explained in enforcing a consumer commission order.
- Not telling the bank. If there is a home loan, the order and the payout need to deal with the bank's dues, or the payment will be held up.
If the compliance date has passed: what to do this week
- Confirm from the Tribunal or the builder's lawyer whether an appeal has been filed and a deposit made.
- Prepare a calculation of the amount due, with interest to date and per day.
- Download the builder's latest quarterly update and list the unsold units.
- Note any bank account the builder is currently using for collections.
- Look up the company's directors and group companies from its public filings.
- File the execution application or request for a recovery certificate with these details.
- Ask the authority which collector's office the certificate will go to, and note the reference.
- Check whether any insolvency application has been filed against the builder.
Having the recovery stage handled
Recovery is less about argument and more about persistence and paperwork: the right application, the right assets, and steady follow-up at the authority and the collector's office. If you hold a RERA order in Delhi, UP or Haryana that the builder has not honoured, the team of Advocate B.K. Singh at B.K. Singh & Associates can look at the order and the builder's position and tell you which recovery route to press first. You can send the papers through our online legal enquiry, or read about Advocate B.K. Singh's practice before the RERA authorities, consumer commissions and the NCLT. If you are still deciding whether to claim a refund at all, start with refund or interest under RERA.
Frequently asked questions
What is a RERA recovery certificate?
It is a certificate issued by the RERA authority under section 40(1) stating the amount a builder owes under its order, sent to the district collector for recovery as arrears of land revenue. The collector can then attach and sell the builder's property and bank balances.
How long does recovery take after a RERA recovery certificate?
There is no fixed time. Some builders pay within weeks once accounts are attached; others take months or years, especially where assets are mortgaged or many certificates are pending against the same builder. Providing specific asset details to the collector usually speeds things up.
How do I check the status of my UP RERA recovery certificate?
Check your complaint record on the UP RERA portal and ask the authority which collector's office the certificate was sent to, along with its reference number. Then follow up with that office in writing, attaching details of the builder's assets.
Can RERA attach the builder's unsold flats?
Yes. Through a recovery certificate or execution, unsold units can be attached and auctioned to satisfy the order. The builder's quarterly updates on the RERA portal usually list the unsold inventory, which you can point out to the authority and the collector.
Can I file an execution petition in Haryana RERA?
Yes. Haryana's rules provide for execution of RERA orders by the adjudicating officer as if they were civil court decrees, and Haryana RERA, Gurugram, has regulations setting out the petition format, including a calculation sheet and a list of the company's and directors' assets.
What penalty can RERA impose on a builder who ignores its order?
Under section 63, a daily penalty that can add up to 5 per cent of the estimated cost of the project. If the builder ignores an Appellate Tribunal order, section 64 allows imprisonment of up to three years or a fine of up to 10 per cent of the project cost, or both.
Can RERA arrest the builder for not paying?
The RERA authority does not arrest people for non-payment. Imprisonment is possible under section 64 for disobeying the Appellate Tribunal's orders, and recovery as arrears of land revenue or execution as a decree can involve coercive steps under the relevant law.
Can I get my money from the builder's appeal deposit?
Yes, if the builder's appeal is dismissed or withdrawn. Under section 43(5) the builder had to deposit the amount ordered before its appeal was heard, and you can apply to the Tribunal for release of that deposit to you.
What happens to my RERA order if the builder goes into insolvency?
Once the NCLT admits insolvency, the moratorium under section 14 of the IBC stops execution and recovery. You file your claim with the resolution professional as a financial creditor, using the RERA order as proof, and recover what the approved resolution plan provides.
Are directors personally liable to pay a RERA refund?
Generally not, if the promoter is a company and the order is against the company. Personal liability arises where the order names them, where they gave personal guarantees, where the promoter is a firm or proprietorship, or where offences under the Act are attributed to them.
Should I accept instalments from the builder after a RERA order?
It can be sensible if the plan clears the amount within a reasonable time with interest, and the terms are recorded before the authority or collector so default can be acted on at once. Avoid offers that waive interest or swap the money for an unfinished unit.
Can I file a consumer case if the builder does not pay the RERA order?
Not for the same relief, because you already have an order for it. Your remedy is execution and recovery of the RERA order. A separate consumer complaint is possible only for a genuinely different grievance.
Written and reviewed at B.K. Singh & Associates
Advocate B.K. Singh
Founder of B.K. Singh & Associates. MCA, LL.B., LL.M., with more than twenty years of practice before the Supreme Court, the Delhi High Court, district courts and tribunals across Delhi NCR. This article explains the general law as of 24 October 2026; it is not legal advice on your facts.