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The Karnataka High Court has directed state revenue authorities to execute a Recovery Certificate issued by Karnataka RERA for recovery of dues from developers under the Real Estate (Regulation and Development) Act, 2016. The court observed that once a Recovery Certificate is issued under Section 40 of the Act and relevant Karnataka RERA Rules, authorities are legally required to recover the amount as arrears of land revenue. The ruling also reiterates the responsibility of designated revenue officials to act on pending recovery proceedings and strengthens the enforceability of RERA orders for homebuyers and complainants in Karnataka.
The Karnataka High Court has directed state authorities to enforce a Recovery Certificate issued by the Karnataka Real Estate Regulatory Authority (K-RERA) against developers, reiterating that recovery proceedings initiated under the Real Estate (Regulation and Development) Act, 2016 must be executed through the revenue recovery mechanism prescribed under law. Advertisement
The writ petition was filed seeking directions against state authorities for enforcement of amounts allegedly due from respondent developers in accordance with provisions of the Karnataka Land Revenue Act, 1964 and related rules. The petitioner also sought directions restraining the regulatory authority from granting renewal or further extensions to the developers in relation to their ongoing projects.
During the proceedings, the petitioner relied on an earlier order passed by a co-ordinate bench of the High Court in a similar matter concerning execution of Recovery Certificates issued by Karnataka RERA.
The court noted that the central grievance raised in the petition related to non-enforcement of a Recovery Certificate issued by K-RERA under Section 40(1) and Section 40(2) of the Real Estate (Regulation and Development) Act, 2016 read with Rule 25 of the Karnataka Real Estate (Regulation and Development) Rules, 2017.
Section 40 of the RERA Act empowers the authority to recover interest, penalties, compensation or other dues payable under orders passed by the regulator, adjudicating officer or appellate tribunal. Under the framework, such dues can be recovered as arrears of land revenue through designated state authorities.
Referring to previous rulings in similar cases, the High Court observed that once a Recovery Certificate is issued by the RERA authority, the concerned revenue authorities are obligated to take appropriate steps for recovery of the amount through the land revenue recovery process.
The court further recorded that a Special Deputy Commissioner had already been designated to deal with Recovery Certificates issued by Karnataka RERA. Since the petitioner had furnished the Recovery Certificate before the court, the bench observed that the petitioner had established a legal right to seek enforcement of the recovery proceedings.
Holding that the designated authorities were required to act upon such certificates, the court issued a writ of mandamus directing respondent authorities to execute the Recovery Certificate and recover the amount within eight weeks from receipt of the order.
The order additionally granted liberty to the petitioner to furnish details of movable and immovable properties before the Special Deputy Commissioner for facilitating the recovery process.
The ruling assumes significance for homebuyers and complainants pursuing enforcement of monetary orders passed by RERA authorities, particularly in cases where recovery proceedings remain pending despite issuance of Recovery Certificates by the regulator.
Source: Indian Kanoon
5th Jun, 2025
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