Punjab & Haryana HC Quashes Notification Giving HRERA Officers Powers To Recover Dues Akin To Collectors

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.

Justice Sureshwar Thakur and Justice H.S. Grewal opined that the notification, issued on May 11, 2024, was not sanctioned under the Real Estate (Regulation and Development) Act, 2016.

It was argued that the delegation of powers to the HRERA Adjudicating Officer to execute orders involving interest, penalty, or compensation violates Section 40(1) of the Real Estate Act, 2016. Although the law allows such amounts to be recovered as land revenue, the petitioner argued that the notification enabling the delegation contradicts the proper legal process.

Section 40(1) of the Act of 2016 allows for the recovery of compensation, interest, and penalties as arrears of land revenue, creating a unified enforcement mechanism. While different authorities (regulatory, appellate, and adjudicating officers) have distinct powers, they all follow a common process to execute their orders. 

The petitioner argued that the impugned notification, which delegates powers to the adjudicating officer/authority to execute orders related to penalties and interest, is invalid. It was contended that the adjudicating officer's jurisdiction is distinct from that of the regulatory and appellate authorities, and there is no statutory provision allowing for the execution of orders related to penalties or interest by the adjudicating officer. It further contended that such a delegation would violate the explicit adjudicatory jurisdictions assigned to the regulatory and appellate authorities under the Act of 2016.

After hearing the submissions the Court opined that, "The government must amend the rules if needed and assign proper revenue officials to handle the enforcement of these dues," the court asserted.

Mr. Ashok Aggarwal, Senior Advocate and Mr. Anand Chhibbar, Senior Advocate with Mr. Vaibhav Sahni, Advocate and

Mr. Venket Rao, Advocate for the petitioner.

Mr. Satya Pal Jain, Addl. Solicitor General of India with Mr. Shobit Phutela, Senior Panel Counsel

for the respondent(s)/Union of India.

Mr. Ankur Mittal, Addl. A.G., Haryana with Ms. Svaneel Jaswal, Addl. A.G. Haryana, Mr. P.P. Chahar, Sr. DAG, Haryana, Mr. Saurah Mago, DAG, Haryana, Mr. Gaurav Bansal, DAG, Haryana and Mr. Karan Jindal, Assistant A.G. Haryana.

Mr. Ankur Mittal, Advocate Ms. Kushaldeep Kaur Manchanda, Advocate Ms. Gurcharan Kaur, Advocate,

Mr. Sandeep Chabbra, Advocate and Ms. Saanvi Singla, Advocate for the respondent-RERA.

Title: M/S VATIKA LIMITED v. UNION OF INDIA AND OTHERS

Click here to read/download the order