In order to regulate the process of implementation and enforcement of the orders of the Authority and Adjudicating Officer, Karnataka Real Estate Regulatory Authority (KRERA) has issued a Standard Operating Procedure (SOP). This SOP provides for the procedure that will have to be followed in case there is non-compliance of the RERA order.
This SOP has been issued in accordance with the provisions of the Real Estate (Regulation and Development) Act, 2016, Karnataka RERA Rules, 2017 and regulations of the Authority and comes into force immediately.
Enforcement Process Under Section 40
Section 40 of the RERA Act states that for the recovery of interest, penalty and compensation and for enforcement of directions.
Section 40( 1) and Rule 25 of the Karnataka RERA Rules provide that interest, penalty, or compensation etc. shall be recovered as if they were arrears of land revenue.
In addition, there is also the availability of a different route under Section 40(2) read with Rule 26.The RERA order or directions shall be enforceable in the same manner as a decree or order of a principal civil court of original jurisdiction.
The new SOP represents the process that should be taken if a party fails to carry out an order.
Compliance Check After 60 Days
The enforcement process includes a compliance review 60 days from the date of the order. At this stage, Karnataka RERA will invite both parties to submit their responses on whether the directions in the order have been implemented. The claimant can confirm whether the relief or benefit granted under the order has been received, while the respondent can provide details and supporting information regarding compliance. This stage allows K-RERA to formally assess the status of implementation before proceeding with further enforcement measures, where required.
Filing an Execution Petition
Where the order remains wholly or partly unimplemented, the Decree Holder can initiate execution proceedings by filing an Execution Petition through the Karnataka RERA web portal.
The petition has to be submitted in the prescribed format. Where the matter involves a monetary claim, an updated Memo of Calculation is also required, wherever applicable.
This creates a specific procedural route for pursuing an order after the compliance stage, particularly in matters involving interest, compensation or other amounts payable by the Judgment Debtor.
Further Opportunity to Comply
The execution process does not necessarily move immediately to recovery measures. The SOP provides for consideration of objections and compliance-related submissions.
Where Karnataka RERA finds that the Judgment Debtor has not complied with the order, the concerned party may be directed to fulfil the order and can be given two weeks to do so.
If the required compliance is completed, the execution proceedings may subsequently be closed as complied.
Asset Details in Monetary Claims
The SOP also provides a mechanism for obtaining information about the assets of a Judgment Debtor in cases involving monetary relief under Section 40(1).
Where non-compliance continues, Karnataka RERA may require the Judgment Debtor to submit an affidavit setting out details of movable and immovable assets. This may include information relating to bank accounts, investments, movable properties and immovable properties.
The affidavit is required to be submitted within two weeks.
The Decree Holder may also be permitted to provide information about properties or other assets of the Judgment Debtor, where such information is available.
If the required affidavit is not submitted or does not contain genuine and accurate information, the Authority may issue further directions in accordance with the applicable legal provisions.
Recovery Through Revenue Authorities
Continued failure to comply with a monetary order can result in further recovery action.
Under the mechanism provided through Section 40(1) read with Rule 25 of the Karnataka RERA Rules, 2017, Karnataka RERA may issue an order accompanied by a Revenue Recovery Certificate for recovery of the amount payable.
The amount can then be pursued through the applicable land revenue recovery mechanism.
This route is relevant where an order requires payment of compensation, interest or another monetary amount and the Judgment Debtor does not make the required payment.
Civil Court Route Under Section 40(2)
The SOP separately addresses enforcement under Section 40(2).
Where this provision applies, the RERA order can be enforced in the manner prescribed for a decree or order of the principal civil court of original jurisdiction. Karnataka RERA may transmit the order to the Principal Civil Court having jurisdiction over the Judgment Debtor and/or the relevant real estate project.
The Decree Holder can thereafter pursue enforcement through the applicable court process.
This creates a distinction between monetary recovery under Section 40(1) and decree-style enforcement under Section 40(2).
Online System for Execution Cases
Karnataka RERA has also provided for an online component covering execution proceedings.
The Authority's IT Department is required to make the necessary arrangements in the portal to manage execution cases from the filing of an Execution Petition through to its disposal.
As a result, parties will have a defined digital route for initiating and tracking execution proceedings, alongside the legal procedures prescribed under the RERA Act and Karnataka RERA Rules.
Implications for Homebuyers
A favourable RERA order does not necessarily mean that the claimant has immediately received the relief awarded. If the Judgment Debtor does not comply, the execution mechanism becomes relevant.
The applicable route will depend on the nature of the order and whether the matter falls under Section 40(1) or Section 40(2).
For homebuyers and other Decree Holders, the procedure provides a defined mechanism for pursuing an order that remains unimplemented.
Obligations of Promoters and Real Estate Agents
Promoters and real estate agents against whom RERA orders have been issued will need to track the directions contained in those orders and take appropriate steps within the applicable timeframe.
If non-compliance continues, the matter can move into execution proceedings. Depending on the nature of the order, this may involve further compliance directions, asset disclosure, revenue recovery or enforcement through the civil court process.
Maintaining records of orders, payment obligations, compliance documents and related correspondence can therefore be important during the post-order stage.
Key Provisions of the SOP
The new Karnataka RERA framework provides for:
- Compliance verification 60 days after an order
- Online filing of Execution Petitions
- Submission of an updated Memo of Calculation, where applicable
- Further opportunity for the Judgment Debtor to comply
- Two-week timelines at specified stages
- Disclosure of assets in relevant monetary recovery cases
- Possible issuance of a Revenue Recovery Certificate
- Enforcement through the competent civil court under Section 40(2)
- Online infrastructure for managing execution proceedings
Conclusion
The SOP introduced by Karnataka RERA provides a procedural framework for dealing with orders that have not been implemented. It connects the initial compliance review with execution proceedings and, where necessary, subsequent recovery or court-based enforcement.
For homebuyers and other parties holding favourable RERA orders, the framework clarifies the steps available when compliance does not take place. For promoters and real estate agents, it sets out the procedural consequences that can follow if an order remains outstanding. The distinction between the recovery mechanism under Section 40(1) and the enforcement route under Section 40(2) will be particularly relevant in determining how an unimplemented Karnataka RERA order is pursued.
Image source- rera.karnataka.gov.in
