(1) If a promoter or an allottee or a real estate agent, as the case may be, fails to pay any interest or penalty or compensation imposed on him, by the adjudicating officer or the Regulatory Authority or the Appellate Authority, as the case may be, under this Act or the rules and regulations made thereunder, it shall be recoverable from such promoter or allottee or real estate agent, in such manner as may be prescribed as an arrears of land revenue.
(2) If any adjudicating officer or the Regulatory Authority or the Appellate Tribunal, as the case may be, issues any order or directs any person to do any act, or refrain from doing any act, which it is empowered to do under this Act or the rules or regulations made thereunder, then in case of failure by any person to comply with such order or direction, the same shall be enforced, in such manner as may be prescribed.
Legal Commentary & Landmark Judgments: Section 40
Section 40 of RERA provides the execution mechanism for recovering unpaid interest, penalty, or compensation from defaulting promoters as arrears of land revenue.
Under sub-section (2), if any order passed by the Adjudicating Officer, the Regulatory Authority, or the Appellate Tribunal is not complied with, it may be enforced in the same manner as if it were a decree of a civil court, empowering the Authority to issue recovery certificates directly to the District Collector.
Section 40 bridges the gap between paper orders and actual monetary realization. When a developer fails to pay refunded sums or interest, the issuance of a Section 40 Recovery Certificate triggers attachment of the developer's bank accounts, personal assets, and unsold project inventory by the District Magistrate/Collector.