Aadrikaa Legal Services (ALS)- Law I Litigation I Arbitration
Date: 13.11.2026
Karnataka HC Declines to Review Order Directing Enforcement of RERA Recovery Certificate
This Short Article has been prepared & written by Advocate Narendra Singh. The views expressed are based on his interpretation of the law. He can be reached at his mob no- +91 8800860662 and email id amitnaren@outlook.com .
The Karnataka High Court has dismissed a review petition filed by M/s Venkateshwara Infra Projects, holding that a RERA recovery certificate must be enforced unless the underlying RERA order is stayed, modified, or set aside by a competent forum.
Background of the dispute
M/s Venkateshwara Infra Projects, a sole proprietorship represented by proprietor, filed Review Petition No. 430 of 2026 before the High Court of Karnataka at Bengaluru. The petition sought a review of the Courtβs earlier order dated 13 November 2025 in W.P. No. 27766/2025.
The earlier writ order had directed the Special Deputy Commissioner to implement a recovery certificate issued under Section 40 of the Real Estate (Regulation and Development) Act, 2016. The direction followed the Courtβs finding that the recovery certificate had not been acted upon. The State had also informed the Court that a Special Deputy Commissioner post had been created to facilitate enforcement of such recovery certificates.
The respondents included Varun Rao B., the State of Karnataka, the Special Tahasildar of Bengaluru North Taluk, and the Karnataka Real Estate Regulatory Authority (RERA).
Why the review petition was filed
The petitioner asked the High Court to reconsider its November 2025 direction. During the hearing, counsel for the petitioner submitted that contempt proceedings had been initiated alleging non-compliance with the prior order.
However, the Court clarified that its prior direction was limited in scope: it required implementation of a recovery certificate that had been issued pursuant to a RERA order. It was not a fresh adjudication of the merits of the underlying RERA dispute.
Courtβs reasoning
Justice held that a recovery certificate issued under Section 40 of the RERA Act remains enforceable while the underlying RERA order continues to operate.
The Court emphasized three key principles:
- Enforcement continues unless the RERA order is challenged successfully. A recovery certificate must be implemented as long as the underlying RERA order has neither been stayed nor set aside.
- A review petition cannot replace the statutory remedy. If the developer is aggrieved by the RERA order or by subsequent recovery action, it must pursue the remedies available before the appropriate legal forum.
- Any stay or final decision will control enforcement. If a competent forum grants a stay, the recovery certificate will be governed by the terms of that stay. If the underlying order is later modified or quashed, the legal consequences for recovery must be determined accordingly.
Outcome
The High Court found no basis to review its earlier order and dismissed the review petition. At the same time, it preserved the petitionerβs liberty to challenge the underlying RERA order and the related recovery proceedings through remedies available under law.
Legal significance
The ruling reinforces the enforceability of RERA recovery certificates. It confirms that administrative authorities must act on such certificates unless a competent forum intervenes with a stay or overturns the underlying order.
For developers and other parties affected by a RERA direction, the decision also underscores the importance of challenging the substantive RERA order through the proper statutory or judicial route rather than seeking to halt enforcement through review proceedings alone. The order was passed by the High Court of Karnataka on 15 October 2026 in Review Petition No. 430 of 2026.
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Source: Karnataka High Court
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