Himachal Pradesh High Court Upholds RERA Compensation Recovery Despite Land Vesting

The Himachal Pradesh High Court has made a significant ruling that recovery proceedings initiated by the Real Estate Regulatory Authority (RERA) cannot be stalled simply because the project land has been vested in the State Government under separate revenue proceedings. This decision reinforces the importance of enforcing RERA orders and ensuring that aggrieved homebuyers receive the compensation they are entitled to.

The Court further clarified that once a RERA order granting monetary relief becomes final, authorities are bound to enforce it through the statutory recovery mechanisms available under revenue law. Justice Jyotsna Rewal Dua emphasized, “Merely on the ground that land with respect to which the petitioner had claimed redressal of his grievance before RERA has now been ordered to be vested in the State Government, the recovery proceedings for implementing the final order passed by RERA… cannot be put on hold/stopped.”

The Court also stated, “Where statute prescribes explicit procedure for the recovery of arrears, such procedure must be scrupulously adhered to in its entirety. No deviation is permissible.”

Background

The petitioner, Pawan Basant Borle, had booked a housing unit in a project named “Aamoksh @ Kasauli” for a total consideration of ₹88,00,000. An agreement to sell was executed in 2015, and the petitioner paid ₹78,00,491. However, the possession of the unit was never delivered. Aggrieved by this, the petitioner approached the Himachal Pradesh Real Estate Regulatory Authority (HP RERA).

In 2021, HP RERA allowed the complaint and directed the respondent promoters to return or refund the amount to the complainants. However, the promoters failed to comply with the order, leading HP RERA to issue a recovery order under Section 40(1) of the RERA Act, which provides that compensation, penalty, or interest imposed by RERA can be recovered as arrears of land revenue.

Subsequently, proceedings were initiated by the Tehsildar Solan. However, in September 2023, these proceedings were put on hold on the ground that, in separate proceedings under Section 118 of the H.P. Tenancy & Land Reforms Act, the land in question had been ordered to vest in the State Government by the District Collector.

Legal Proceedings

Aggrieved by the suspension of recovery proceedings, the petitioner filed a writ petition before the Himachal Pradesh High Court, seeking a direction to ensure the execution of the RERA order. Examining Section 40 of the RERA Act, the court reiterated that “If a promoter… fails to pay any interest or penalty or compensation… it shall be recoverable… as an arrears of land revenue.”

The Court concluded that the RERA order had attained finality and was to be enforced strictly in accordance with the law. The judgment underscores the importance of adhering to the statutory procedures for the recovery of arrears and the need to protect the rights of homebuyers who have been wronged by unscrupulous promoters.

Case Details

- Case Name : Pawan Basant Borle v/s Union of India & others - Case No. : CWP No. 1153 of 2026 - Date of Decision : 25.02.2026 - For the Petitioner : Mr. N.K. Bhalla, Advocate - For the Respondents : Ms. Sheetal Vyas, CGC, for respondent No.1; Mr. Y.P.S. Dhaulta, Additional Advocate General for respondents No.2 & 3; Mr. Raman Ravi Verma, Advocate, for respondent No.4.

This landmark decision by the Himachal Pradesh High Court sets a precedent for the strict enforcement of RERA orders and ensures that homebuyers are not left in the lurch due to procedural delays or administrative decisions.