MahaRERA has issued a major reform to strengthen enforcement of compensation orders passed in favour of homebuyers. A new Standard Operating Procedure (SOP) has been formulated to enable timely recovery of compensation from defaulting real estate developers, following directions from the Hon’ble Bombay High Court. The SOP ensures structured action against promoters who fail to comply with compensation orders issued by Adjudicating Officers.
Purpose of the New SOP
The latest framework aims to prevent delays that homebuyers frequently face even after obtaining favourable orders. MahaRERA has observed that developers often ignore or prolong compliance, causing financial distress to allottees who continue paying rent and EMIs while awaiting possession.
The newly announced SOP ensures that compensation amounts are recovered efficiently and within a strict timeline. MahaRERA has stated that homebuyers must receive compensation within 60 days from the date of the order.
Key Features of the SOP
Homebuyers can now initiate recovery proceedings through a structured escalation mechanism if the developer does not comply within the stipulated period. The SOP includes the following steps:
Step 1 – Filing Non-Compliance Application
If compensation or interest remains unpaid after 60 days, the allottee must file a non-compliance application seeking recovery with interest.
Step 2 – Hearing by MahaRERA
MahaRERA will conduct a hearing on the application within four weeks of receipt. If non-compliance is established, the Authority will allow reasonable additional time to the promoter to pay.
Step 3 – Filing of Asset Affidavit by Developer
If the developer still defaults, they will be directed to submit an affidavit listing all movable and immovable assets, bank accounts, and investments.
Step 4 – Recovery Warrant
MahaRERA will issue a Recovery Warrant to the concerned District Collector, who will then initiate proceedings to seize or attach property and bank accounts.
Step 5 – Legal Escalation & Imprisonment
If the developer refuses to provide asset information, the case will be transferred to the Principal Civil Court for further stringent action.
As per provisions under the Code of Civil Procedure, a defaulting promoter may be imprisoned for up to three months. This is the first time such a provision will be directly applied to non-compliance of RERA orders.
Why this Reform is Significant
Thousands of homebuyers approach MahaRERA due to issues like delayed possession, poor construction quality, missing amenities, and parking disputes. Although many receive favourable adjudication, enforcement has remained a concern.
The new SOP is expected to:
● Speed up recovery of compensation
● Act as a deterrent against non-compliant builders
● Increase accountability and transparency
● Strengthen consumer confidence in MahaRERA
Expected Outcomes
The SOP aligns with the Bombay High Court’s direction to ensure strict implementation of RERA provisions. MahaRERA believes the mechanism will provide timely relief, reduce litigation burden, and discourage deliberate delays.
This initiative is being welcomed by homebuyers as a major step in ensuring real justice and improving regulatory enforcement in Maharashtra’s real estate sector.
