HC strikes down govt move giving HRERA officers recovery powers

The Punjab and Haryana High Court has struck down a Haryana Government notification that empowered Real Estate Regulatory Authority’s (HRERA) Adjudicating Officers to recover dues like Collectors. The court ruled that the notification, issued on May 11, 2024, was not sanctioned under the Real Estate (Regulation and Development) Act, 2016, and violated the established legal process.

The notification had authorised HRERA Adjudicating Officers to directly recover amounts such as interest, penalties, and compensation, treating them like civil court decrees. However, the petitioner argued that the Real Estate Act mandates that such dues must be recovered as arrears of land revenue — a process reserved for designated revenue officials, not HRERA officers.

Accepting the arguments, a Division Bench comprising Justice Sureshwar Thakur and Justice HS Grewal ruled that enforcement of HRERA orders must strictly adhere to the Haryana Land Revenue Act, 1887, and not be treated like civil court orders.

“The government must amend the rules if needed and assign proper revenue officials to handle the enforcement of these dues," the court asserted.

The judgment came while allowing a petition filed by Vatika Limited against the Union of India and other respondents. Senior advocates Ashok Aggarwal and Anand Chhibbar, along with counsels Vaibhav Sahni and Venket Rao, represented the petitioner. Additional Solicitor-General of India Satya Pal Jain appeared for the Union of India.

The court emphasised that under the Real Estate Act, the roles of Regulatory Authorities, Adjudicating Officers, and Appellate Tribunals are distinct. “Adjudicating Officers are empowered only to inquire and determine compensation amounts, not to enforce payment," it said.

Rejecting the state’s argument that powers under Section 27 of the Haryana Land Revenue Act could permit such delegation, the court underlined that “enforcement and adjudication are two separate functions and must remain distinct."

The court also disapproved a previous Single Bench ruling that had allowed enforcement of HRERA orders like civil court decrees. It reiterated that Rule 27 of the Haryana Rules under the Real Estate Act, 2017, prescribes recovery through land revenue procedures, involving steps like arrest, attachment, and auction — not civil decree execution.

In conclusion, the high court quashed the Haryana notification and reiterated that unpaid penalties, interest, and compensation must be recovered solely through procedures meant for land revenue arrears, maintaining the distinct jurisdiction of each authority under the Real Estate Act.

Haryana Tribune