After Two Years’ Inaction, Madras HC Gives Collector 3 Weeks To Recover Builder’s RERA Penalties For Not Furnishing Completion Certificate

In brief

The question

1. Whether the District Collector’s failure to act on TNRERA’s recovery warrant warranted a mandamus directing recovery of the sums as arrears of land revenue.

The court held

The Court allowed the writ petition and issued a mandamus directing the District Collector to execute TNRERA’s recovery order/warrant and recover the sums directed from the builder as arrears of land revenue under the Tamil Nadu Revenue Recovery Act, 1864, within three weeks of receiving a copy of the order.

It also directed

No costs were awarded.

01Facts

The petitioner is a registered flat owners’ association representing residents of a project developed by the third respondent-builder.

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Following complaints about incomplete works, TNRERA directed the builder to register the project, complete pending works, hand over maintenance of common areas, and furnish a Completion Certificate; the builder’s appeal was dismissed.

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In execution proceedings, TNRERA imposed penalties and directed their recovery by the District Collector. It forwarded a recovery warrant to the Collector on 23 May 2024 under Section 40(1) of the Real Estate (Regulation and Development) Act, 2016, read with Rule 26 of the Tamil Nadu Rules, but the Collector had not initiated recovery proceedings despite the petitioner’s representations.

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The Association therefore sought a mandamus directing execution of the warrant and recovery of the sums as arrears of land revenue.

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02Issues

i.1. Whether the District Collector’s failure to act on TNRERA’s recovery warrant warranted a mandamus directing recovery of the sums as arrears of land revenue.

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ii.2. Whether the recovery was to be completed within a time fixed by the Court.

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03Law Applied

Article 226 of the Constitution empowers the High Court to issue a writ of mandamus to require a public authority to perform a legally required duty.

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Section 40(1) of the Real Estate (Regulation and Development) Act, 2016, read with Rule 26 of the Tamil Nadu Real Estate (Regulation and Development) Rules, 2017, was the stated basis for forwarding the recovery warrant for execution.

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The order directed recovery of the sums as arrears of land revenue under the Tamil Nadu Revenue Recovery Act, 1864.

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Provisions in the judgment · 3 · Linked ones open on LawLens

Real Estate (Regulation and Development) Act, 2016. Section 40 Section 17 Section 63

04Reasoning

TNRERA had issued and forwarded the recovery warrant in 2024, directing the Collector to recover the penalty from the builder as arrears of land revenue.

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The Court noted that, despite receipt of the warrant, the Collector had taken no steps to commence recovery proceedings.

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In light of that inaction and the recovery direction, the Court considered a mandamus appropriate and required the Collector to execute the warrant.

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