Why & When Auction under RERA recovery certificates may frustrate?
This article examines the legal limitations in enforcing RERA recovery certificates through auction of promoters’ properties. It argues that amounts recoverable under RERA are not “arrears of land revenue” in substance, and therefore cannot override secured interests such as mortgages and debenture rights. Drawing on key High Court precedents, the piece highlights how indiscriminate auctions by revenue authorities can frustrate homebuyers and create further litigation, and suggests a more structured approach by RERA to identify encumbrance-free assets before issuing recovery certificates.