Karnataka RERA Introduces SOP for Execution and Enforcement of RERA Orders Under Section 40

The Karnataka Real Estate Regulatory Authority (K-RERA) has prescribed a Standard Operating Procedure (SOP) for the implementation, execution and enforcement of orders passed by the Authority or the Adjudicating Officer.

The SOP has been introduced in exercise of the powers available under the Real Estate (Regulation and Development) Act, 2016, the Karnataka RERA Rules, 2017 and the regulations of the Authority, and has come into force with immediate effect.

The circular is particularly important for homebuyers, promoters, real estate agents and other parties involved in RERA proceedings because it lays down a structured process to be followed where an order passed by Karnataka RERA is not complied with.

Legal Framework Under Section 40 of RERA

Section 40 of the RERA Act deals with the recovery of interest, penalty and compensation as well as enforcement of orders passed under the Act.

Under Section 40(1) read with Rule 25 of the Karnataka RERA Rules, the Authority or the Adjudicating Officer, as the case may be, can recover interest, penalty or compensation from a promoter, allottee or real estate agent in the same manner as arrears of land revenue, in accordance with the Karnataka Land Revenue Act, 1964 and the applicable rules.

Further, Section 40(2) read with Rule 26 enables the Authority or Adjudicating Officer to enforce its orders or directions in the same manner as if they were a decree or order passed by the principal civil court of original jurisdiction.

60-Day Compliance Verification

Under the new SOP, after the expiry of 60 days from the date of passing of an order, Karnataka RERA will verify whether the order has been complied with.

For this purpose, the Authority will send a communication to both parties seeking their response regarding compliance with the order.

This creates a defined mechanism for monitoring compliance after an order has been passed.

Filing of Execution Petition

If the Judgment Debtor fails to fully comply with the RERA order, the Decree Holder can proceed with enforcement by filing a Petition on the web portal of Karnataka RERA in the prescribed format.

An up-to-date Memo of Calculation, wherever applicable, is also required to be filed along with the petition.

This step is particularly relevant where the RERA order involves monetary relief, interest or other amounts payable to the Decree Holder.

Opportunity to Comply With the Order

During the execution proceedings, the parties will be provided an opportunity to address objections and compliance issues.

If the Authority finds that the Judgment Debtor has failed to comply with the order, the Judgment Debtor will be called upon to comply and will be granted a period of two weeks for such compliance.

If complete compliance is subsequently recorded, the execution petition may be disposed of as complied.

Disclosure of Assets by Judgment Debtor

A significant provision of the SOP relates to cases involving monetary relief under Section 40(1) of the RERA Act.

Where the Judgment Debtor continues to fail to comply, the Authority may direct the Judgment Debtor to file an affidavit disclosing and detailing all movable and immovable assets, including:

• Bank accounts

• Investments
• Movable assets
• Immovable properties

The affidavit is required to be filed within two weeks.

The Decree Holder may also be provided an opportunity to identify and produce details of the movable and immovable properties of the Judgment Debtor, if available, to help expedite the proceedings.

If the Judgment Debtor fails to provide a genuine and accurate affidavit disclosing the required assets, the Authority may pass appropriate orders or directions.

Revenue Recovery Certificate for Non-Compliance

If the Judgment Debtor continues to fail to comply with the order despite the opportunities provided, an order may be passed along with a Revenue Recovery Certificate for recovery of the amounts directed under the RERA order.

Such recovery is contemplated under Section 40(1) read with Rule 25 of the Karnataka RERA Rules, 2017.

This provides a mechanism for recovery of monetary amounts pursuant to RERA orders through the applicable land revenue recovery process.

Enforcement Through Civil Court

For matters covered under Section 40(2), the Authority may enforce the order in accordance with law as if it were a decree or order passed by a principal civil court.

The Authority may also transmit the order to the Principal Civil Court having jurisdiction over the Judgment Debtor and/or the concerned real estate project, enabling the Decree Holder to enforce the order in accordance with law.

Digital Execution Proceedings

The circular also provides that the IT Department of Karnataka RERA shall make the necessary arrangements in the online system and digital infrastructure for execution proceedings from the date of filing of the Execution Petition until its disposal.

This is expected to provide a more structured digital mechanism for managing execution proceedings before Karnataka RERA.

Why Is This Circular Important for Homebuyers?

Obtaining a favourable RERA order is only one stage of the dispute resolution process. Actual relief depends upon implementation and compliance with that order.

The new SOP provides greater procedural clarity regarding what happens when an order remains unimplemented.

The broad enforcement process can be understood as:

RERA Order → 60-Day Compliance Verification → Execution Petition → Opportunity for Compliance → Asset Disclosure → Recovery/Enforcement

For homebuyers who have obtained orders granting monetary relief or other directions, the SOP provides a clearer framework for pursuing execution where the opposite party fails to comply.

What Does It Mean for Promoters and Real Estate Agents?

Promoters and real estate agents should ensure timely compliance with orders passed by Karnataka RERA.

Continued non-compliance may result in execution proceedings and, depending upon the nature of the order, could involve disclosure of assets, recovery proceedings or enforcement through the civil court mechanism.

It is therefore advisable for promoters and real estate agents to maintain a proper system for monitoring RERA orders, compliance requirements and execution proceedings.

Key Takeaways

The Karnataka RERA SOP introduces a structured framework for enforcement of orders, including:

• Compliance verification after 60 days from the date of the order

• Filing of Execution Petition through the Karnataka RERA web portal
• Filing of updated Memo of Calculation, wherever applicable
• Opportunity to the Judgment Debtor to comply
• Two-week compliance period in specified stages
• Disclosure of movable and immovable assets in monetary relief cases
• Possibility of issuance of Revenue Recovery Certificate
• Enforcement through the competent civil court mechanism under Section 40(2)
• Digital infrastructure for managing execution proceedings

Conclusion

The introduction of this SOP is an important procedural development for the enforcement of Karnataka RERA orders.

By establishing defined stages for compliance verification, execution petitions, asset disclosure and recovery or enforcement proceedings, Karnataka RERA has provided greater clarity regarding the steps that may be taken when its orders are not voluntarily complied with.

For homebuyers and other Decree Holders, understanding the execution process is important for effectively pursuing relief granted under a RERA order. At the same time, promoters, agents and other Judgment Debtors should ensure timely and complete compliance with orders to avoid further execution and recovery proceedings.