Admitting that the recovery rate of penalties imposed by the Maharashtra Real Estate Regulatory Authority is only 34%, Maharashtra Excise Minister Shambhuraje Desai informed the State Assembly that strict steps will be taken to initiate property attachment proceedings against defaulting builders, even if they are located outside the concerned district.
The statement comes amid growing concerns about delays in enforcement of RERA orders and the effectiveness of recovery mechanisms under the real estate regulatory framework.
₹792 Crore in Pending RERA Penalties
Speaking in the Assembly, Desai revealed key figures regarding pending RERA penalty recoveries across the state:
Total pending penalties: ₹792 crore
Amount recovered so far: ₹279 crore
Amount pending before NCLT: ₹103 crore
Outstanding dues yet to be recovered: ₹430.6 crore
These figures reflect a low recovery rate of approximately 34%, raising concerns about enforcement efficiency and deterrence against errant developers.
Direction for Property Attachment and Special Recovery Drive
To address the issue, the Minister directed district officials to collate detailed information about defaulters and initiate property attachment proceedings wherever necessary.
He emphasized that recovery action should not be restricted by district boundaries and that proceedings can be initiated even if the defaulting builder is based in another district.
Additionally, the Urban Development Department has been instructed to conduct regular reviews with district collectors and divisional commissioners to monitor the progress of recoveries.
The government has also proposed a special recovery drive to expedite the process and ensure compliance with RERA orders.
Concerns Raised in the Assembly
The issue was raised by BJP MLA Atul Bhatkalkar, who criticized delays in execution of RERA orders and questioned the effectiveness of enforcement mechanisms.
Bhatkalkar remarked that after RERA passes an order, it often takes an unreasonably long time for penalties to be recovered. He questioned whether the regulatory framework had become ineffective and expressed concern about the impact on homebuyers.
Citing a specific case he personally followed, he stated that it took 317 days for RERA to deliver an order, followed by an additional three months to obtain an order from the adjudicating authority after the builder failed to comply.
He questioned what recourse would be available to ordinary citizens if even monitored cases face such prolonged delays.
Legal Framework for Recovery Under RERA
Under the Real Estate (Regulation and Development) Act, 2016, penalties imposed by RERA are recoverable as arrears of land revenue. This empowers authorities to initiate coercive measures, including attachment and sale of properties, to recover dues from defaulting promoters.
However, implementation at the ground level depends heavily on coordination between RERA, revenue authorities, and district administration.
The Minister’s directive signals an attempt to strengthen enforcement and improve inter-departmental coordination to ensure that RERA orders are not reduced to mere paper directives.
Impact on Builders and Homebuyers
For builders, the announcement indicates that non-payment of penalties may now attract stricter recovery proceedings, including attachment of properties across districts.
For homebuyers, the move offers hope that regulatory orders will be enforced more effectively, thereby enhancing the credibility of the RERA framework in Maharashtra.
The proposed special drive and regular monitoring mechanisms could significantly improve recovery rates if implemented rigorously.
Strengthening Enforcement of RERA Orders
The debate in the Assembly highlights a broader challenge faced by regulatory authorities: ensuring that orders are not only passed but also executed in a timely manner.
By directing proactive steps such as property attachment and systematic review mechanisms, the state government aims to reinforce the enforcement arm of MahaRERA and restore confidence among aggrieved homebuyers.
The effectiveness of these measures will depend on swift administrative coordination and consistent follow-up at the district level.
