Winning a case before RERA is only half the battle.
For many homebuyers, the bigger problem begins after the order: What happens if the builder simply does not pay?
A significant judgment of the Himachal Pradesh High Court has reinforced an important protection for homebuyers. The Court held that recovery of money awarded by RERA cannot simply be stopped because the land connected with the project has subsequently vested in the State.
The judgment in Pawan Wasant Borle v. Union of India & Others, CWP No. 1153 of 2026, decided on February 25, 2026, examined the enforcement of a final RERA order and the recovery mechanism available to a successful homebuyer.
What happened in the case?
The petitioner had booked a housing unit in a project known as “Aamoksh @ Kasauli” and had paid approximately ₹78 lakh towards the property.
The promised transaction did not result in delivery of the property as expected.
The homebuyer approached the Himachal Pradesh RERA.
RERA ultimately directed the promoters to refund amounts paid by the affected homebuyers along with interest. In the petitioner’s case, the refund order included ₹78,00,491, together with interest calculated at the applicable rate.
The RERA order became final because it was not successfully challenged by the promoters.
The builder still did not pay
The problem was that the final RERA order remained unpaid.
The RERA authority therefore issued a Recovery Certificate for approximately ₹1.21 crore, including interest.
The amount was then sought to be recovered as arrears of land revenue.
However, an issue arose because the land associated with the project had subsequently vested in the State.
The question before the High Court was essentially whether this development could stop or indefinitely delay recovery of the money that RERA had already awarded to the homebuyer.
High Court says recovery cannot simply be stopped
The Himachal Pradesh High Court rejected the idea that recovery should be halted merely because the project land had vested in the State.
The Court examined Section 40 of the RERA Act, which provides a mechanism for recovery of interest, penalty or compensation awarded under RERA.
Importantly, the Court recognised that a final RERA order granting monetary compensation creates an enforceable right in favour of the homebuyer.
The Court held that merely because the project land had vested in the State, the recovery proceedings could not be put on hold.
Why Section 40 of RERA matters
Section 40 is particularly important for homebuyers who have already obtained a favourable RERA order.
It provides a statutory mechanism through which amounts such as interest, penalty or compensation can be recovered.
In practical terms, this means a homebuyer should not necessarily stop after obtaining a favourable RERA decision.
There can be a second stage:
RERA Order → Recovery Certificate → Execution/Recovery Proceedings → Actual Recovery
The enforcement stage can therefore be just as important as winning the original complaint.
What if the builder says there is no money?
A homebuyer should not automatically assume that an unpaid RERA order means the case is over.
The statutory recovery mechanism exists precisely because an order may not be voluntarily complied with.
In the Borle case, the High Court noted the availability of mechanisms under RERA and the applicable revenue-recovery framework for enforcing the monetary award.
The Court’s reasoning therefore has wider significance for homebuyers who have obtained a RERA order but are still waiting for payment.
The lesson: A RERA order should not remain a “paper victory”
One of the biggest frustrations for homebuyers is obtaining a favourable order but not receiving the money.
This judgment highlights an important distinction:
Winning the case and recovering the money are two different stages.
A homebuyer who has received a favourable RERA order should determine:
- Has the order become final?
- Has the developer complied?
- Has a recovery certificate been issued?
- What is the outstanding amount including interest?
- Which authority is responsible for recovery?
- Has execution actually commenced?
- Are there statutory recovery mechanisms available?
- Is the recovery proceeding being delayed without lawful justification?
What should a homebuyer do if a builder does not comply with RERA?
Do not simply keep sending reminders indefinitely.
Instead, obtain a complete copy of the RERA order and examine its execution status.
Depending on the State and the facts, the next step may involve:
- Applying for execution.
- Seeking a recovery certificate.
- Initiating statutory recovery proceedings.
- Following up with the designated recovery authority.
- Challenging an unlawful obstruction to recovery.
- Seeking appropriate judicial intervention where necessary.
The exact process differs from State to State.
A powerful message for stuck-property buyers
For buyers trapped in delayed or abandoned projects, this judgment provides an important legal lesson:
A favourable RERA order is not supposed to become meaningless simply because the developer does not voluntarily pay.
The RERA Act contains enforcement mechanisms, and courts can intervene where recovery is improperly stalled.
The High Court’s decision therefore strengthens the practical importance of execution and recovery of RERA orders, not merely obtaining them.
Key takeaway
If you have already won a RERA case but the builder has not paid, do not assume that your only option is to wait.
Your legal strategy should move from:
“I have won the RERA case”
to:
“How do I enforce the RERA order and actually recover my money?”
That distinction can be critical for homebuyers dealing with stalled projects, insolvent developers or promoters who refuse to honour regulatory orders.
meraRERA.com helps homebuyers understand both sides of the RERA journey — making an informed decision before buying and identifying legal remedies when the property or developer gets stuck.
Frequently Asked Questions
What happens if a builder does not comply with a RERA order?
The RERA Act contains mechanisms for recovery and enforcement. The appropriate execution procedure depends on the State and the nature of the order.
Can RERA compensation be recovered as arrears of land revenue?
Section 40 of RERA provides for recovery of interest, penalty or compensation in the prescribed manner, including as arrears of land revenue.
What if the project land has been taken over or vested in the government?
The Himachal Pradesh High Court held in Pawan Wasant Borle that this circumstance, by itself, could not justify stopping recovery of a final RERA monetary award.
Is getting a RERA order enough?
Not always. If the promoter does not voluntarily comply, the homebuyer may need to pursue execution and recovery.
Legal Disclaimer: This article is intended for general information and awareness. It does not constitute legal advice. The procedure for executing a RERA order varies between States and individual cases should be reviewed by a qualified legal professional.