HP High Court: RERA Compensation Recovery Cannot Be Stopped Due To Later Vesting Of Land In State

The Himachal Pradesh High Court, in Pawan Basant Borle v/s Union of India & others, has held that recovery of compensation ordered by the Real Estate Regulatory Authority (RERA) cannot be halted merely because the project land later vested in the State Government through separate proceedings.

The Court clarified that once a RERA order granting monetary relief becomes final, the concerned authorities must enforce it using the statutory recovery mechanisms prescribed under law. The recovery process cannot be paused due to later developments affecting the land.

Justice Jyotsna Rewal Dua observed that: “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 emphasised the mandatory nature of statutory procedures. It 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.”

The matter arose after the petitioner booked a housing unit in a project named “Aamoksh @ Kasauli” for ₹88,00,000. In 2015, an agreement to sell was executed and the petitioner paid ₹78,00,491. Despite the substantial payment, possession of the unit was never handed over.

Following the delay and failure to deliver possession, the petitioner approached the Himachal Pradesh Real Estate Regulatory Authority seeking relief against the promoters.

In 2021, RERA allowed the complaint and directed the promoters to refund the amount to the complainant. However, the promoters failed to comply with the order.

Consequently, the Authority issued a recovery order under Section 40(1) of the Real Estate (Regulation and Development) Act, 2016. The provision allows compensation, interest or penalty imposed by RERA to be recovered as arrears of land revenue.

Recovery proceedings were initiated by the Tehsildar in Solan district. However, in September 2023, the proceedings were put on hold.

The suspension was based on a separate order passed under Section 118 of the Himachal Pradesh Tenancy and Land Reforms Act, through which the District Collector directed that the project land would vest in the State Government.

Challenging the halt in recovery proceedings, the petitioner approached the Himachal Pradesh High Court seeking directions to ensure enforcement of the RERA order.

After examining Section 40 of the RERA Act, the High Court reiterated that any interest, penalty or compensation ordered by the Authority must be recovered as arrears of land revenue if the promoter fails to pay.

The Court ultimately held that the RERA order had attained finality and must be enforced strictly in accordance with the statutory mechanism. Subsequent vesting of land in the State Government could not be used as a ground to stall the recovery process.

Case Name: Pawan Basant Borle v/s Union of India & others
Case No.: CWP No. 1153 of 2026
Date of Decision: 25 February 2026