Haryana Real Estate (Regulation and Development) Act (RERA) adjudicating officer, Rajender Kumar, has labelled the authority “toothless tiger,” lamenting the lack of enforcement mechanisms under the 2016 Act. In an interview to HT, the former Delhi district and sessions judge discussed the hurdles in executing orders against influential builders, particularly due to the non-cooperation of law enforcement agencies, and raised concerns over the efficacy of arrest warrants. Kumar, who heads the RERA adjudicating office in Gurugram—a hub for real estate projects in the Delhi-NCR — also pointed out the police’s inaction, stating that despite issuing over 700 arrest warrants, none have been executed. He emphasised the urgent need for stronger mechanisms within RERA to address these issues effectively. Edited excerpts:
In light of the Supreme Court’s recent remarks expressing disapproval of RERA’s functioning, particularly the criticism of RERA being a “rehabilitation center for former bureaucrats,” what do you have to say? Do you think the authority has been able to fulfill its mandate effectively?
The outburst of the apex court is not misplaced, but it represents just one side of the coin. The RERA Act of 2016 is a special law, complete in itself. However, it does not provide an effective mechanism to enforce the orders passed by the authority, the adjudicating officer, or the appellate tribunal. In the absence of such enforcement powers, the authority has essentially become a “toothless tiger”.
The RERA Act was enacted with the aim of protecting homebuyers and ensuring transparency in the real estate sector. In your experience as an adjudicating officer, what are the main challenges you face in getting orders executed, especially against influential builders? Could you provide some specific examples?
It’s true that one of the main objectives of Parliament in passing this Act was to protect the interests of homebuyers. However, due to their dominant position, promoters often find ways to avoid compliance, leaving buyers to suffer. Almost all complainants are buyers. Despite orders passed by the authority or the adjudicating officer, and even after those orders are upheld in appeals, builders and promoters rarely comply.
For example, when builders are directed to disclose their assets or properties — which can then be attached and sold to recover the decreed amount — they frequently fail to comply. Builders also refuse to hand over possession of allotted units to homebuyers, even after losing appeals. Arrest warrants issued against them are not executed by the police. We are dependent on the police for the execution of such warrants, but the police pay no attention to our orders.
In fact, even when we initiate contempt proceedings against the police by referring the matter to the high court, it yields no results. I, as the adjudicating officer of Haryana RERA in Gurugram, have issued over 700 arrest warrants against directors and officers of promoters, yet not a single person has been arrested by the police. In three cases, references for contempt of court have been made to the Punjab & Haryana High Court, but this too has had no effect.
There have been allegations of a nexus between builders and the police, with some suggesting that this relationship hinders the enforcement of RERA orders. How significant do you think this issue is in Haryana, particularly in Gurugram, and what steps can be taken to address it?
I cannot categorically state that there is a nexus between the police and builders, but it is evident that the police are desperately inactive when it comes to acting on these builders. Despite the orders, the police consistently fail to take action.
There are reports that the Haryana government is currently framing new rules for the effective implementation of RERA orders, but until these rules are finalised and enforced, the situation remains challenging.
To what extent does the support of the state government play a role in the effective implementation of RERA’s decisions? Are there any specific instances where the lack of government backing has hampered the execution of orders?
The Haryana Government framed some rules in 2017. Following a high court order in the case of ILD Vs Aditi Chandra, all orders for the recovery of amounts were sent to concerned district collectors. In some cases, recovery was made, which was a positive step.
Recently, the Haryana government has conferred the powers of collectors upon Adjudicating Officers to recover these amounts and is also in the process of framing rules to ensure the effective implementation of RERA orders.
With the RERA adjudicating authority often seen as a powerless body when it comes to enforcement, do you believe there is a need for stronger enforcement mechanisms within the Act itself? What amendments or policy changes would you suggest to enhance the authority’s ability to act?
The 2016 Act is a very well-crafted piece of legislation. It mandates that each complaint must be decided within 60 days, and it does not require the strict application of the Civil Procedure Code or the Indian Evidence Act. We adopt a summary procedure, following the principles of natural justice. The Act gives broad powers to the authority.
For instance, the authority has the power to supervise ongoing projects, intervene if the project is not being constructed as planned, impose fines or penalties on builders, and even sentence them to imprisonment. Additionally, 70% of the amount collected from buyers must be deposited in an escrow account, which can only be used for project completion.
However, the fundamental problem is that the authority lacks the power to implement its own orders. For example, if the authority sentences a builder to imprisonment, it is unclear who would arrest the builder and bring them to jail. There is an urgent need to establish a mechanism for the implementation of orders passed by the authority, the adjudicating officer, or the appellate tribunal.
Some courts have observed that homebuyers were being pushed to RERA as an alternative remedy for issues such as pre-EMIs and delayed projects. However, with the limited powers of enforcement, do you think RERA is truly an effective forum for such disputes, or are homebuyers being left in limbo?
Kumar: RERA is not an “alternative remedy”; it is a special Act designed specifically to address real estate issues. It provides remedies for all grievances raised by buyers, agents and promoters. In cases of delayed projects, a buyer has the option of seeking a refund with interest and compensation or continuing with the project while claiming compensation for delayed possession.
However, because of its limited powers of enforcement, RERA has been rendered somewhat otiose. It often fails to provide homebuyers with effective relief, as builders find ways to circumvent compliance with RERA’s decisions.
