Haryana notifies streamlined recovery process for homebuyers

Saurabh Malik

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Chandigarh, May 18

In a major relief to homebuyers constrained to approach the court following the failure of the authorities concerned to execute recovery warrant/certificates issued against the promoters despite the lapse of several years, the State of Haryana has come out with a notification to streamline the recovery process.

The notification came after the Punjab and Haryana High Court observed it had “come across many such cases, and records were replete, where investors were constrained to approach the court for the authorities failed to execute the recovery certificates, though years have gone by”.

The Bench of Justice Arun Palli and Justice Vikram Aggarwal was hearing a bunch of 25 petitions on the issue. A substantial number of petitioners were complainants before Gurugram Haryana Real Estate Regulatory Authority. Their complaints under the provisions of the Real Estate (Regulation and Development) Act, 2016, were allowed years ago.

The competent authority or the adjudicating officer subsequently issued recovery certificates, whereby the amount they were entitled to, was determined upon initiating the execution proceedings. Their grievance was that the authorities apparently failed to recover the amount, although years had rolled by, resulting in continual suffering.

In one of the matters, the entire land belonging to a promoter was attached. The recovery certificates were sent back to the Haryana Real Estate Regulatory Authority for necessary orders, since vacant land was subsequently not available for attachment

The Bench observed Haryana Additional Advocate-General, during the course of hearing, shared copy of the gazette notification dated May 11 issued by the personnel department. Its analysis revealed the powers of the collector for execution of recovery warrants/certificates had now been vested with the adjudicating officer. Further, all pending recoveries with the district collectors in the State of Haryana, initiated pursuant to the receipt of recovery certificates, would stand transferred to the adjudicating officer of respective authority from the date of the notification’s publication.

The State counsel added a standard operating procedure, pursuant to the notification, was being finalised and was at an advance stage. It would be notified soon for enabling the adjudicating officer to finalise the execution proceedings.

The development is significant as the notification will provide the required impetus to the long drawn execution proceedings and process of recovery by revenue officials. It provides teeth to the authority itself to execute its decrees expeditiously without having to leave it to the revenue officials.

The Bench also took note of the submission by the counsel for the petitioners to dispose of the petitions to enable them, if required, to pursue the matter with the adjudicating officers for execution of the decrees passed in their favour.