compensation fine
Share this

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has achieved a significant milestone in strengthening homebuyer protection and enforcement of compensation orders by recovering nearly ₹270 crore for aggrieved homebuyers since the implementation of the Real Estate (Regulation and Development) Act, 2016.

This recovery has been made possible through coordinated action between MahaRERA and the respective District Collector offices, highlighting the effectiveness of statutory enforcement under Section 40(1) of the RERA Act.

Recovery Journey Since 2017

Since its inception in May 2017, MahaRERA has issued recovery warrants amounting to ₹792 crore in favour of 1,291 complainants. Out of this, approximately ₹268.87 crore has already been successfully recovered and paid to homebuyers.

Between 2017 and November 2024, compensation worth ₹200 crore was recovered. In 2025 alone, an additional ₹70 crore has been recovered, reflecting a sharp acceleration in enforcement efficiency.

Highlight: The year 2025 has emerged as a turning point in actual execution of compensation orders, not just issuance of directions.

Role of District Collectors Under RERA

While MahaRERA functions as a quasi-judicial authority, it does not have direct execution powers. As per Section 40(1) of the RERA Act, recovery of unpaid compensation can only be carried out by the District Collector’s Office, treating such dues as arrears of land revenue under the Maharashtra Land Revenue Code.

Accordingly, MahaRERA issues recovery warrants which are then executed by the concerned revenue authorities through attachment, auction, or bank recovery proceedings.

Pending Matters Before NCLT

Out of the total ₹792 crore ordered, cases worth ₹103 crore are currently pending before the National Company Law Tribunal (NCLT). Due to legal restrictions imposed under insolvency proceedings, recovery in these cases remains on hold.

District-Wise Recovery Performance

The district-wise recovery data reflects both the scale of defaults and the effectiveness of enforcement:

Mumbai Suburban: ₹112 crore recovered out of ₹352 crore
Mumbai City: ₹53 crore recovered out of ₹104 crore
Pune: ₹47 crore recovered out of ₹195 crore
Thane: ₹23 crore recovered out of ₹74.63 crore
Raigad (Alibaug): ₹9 crore recovered out of ₹24 crore
Palghar: ₹4.59 crore recovered out of ₹20.49 crore
Nagpur: ₹9.65 crore recovered out of ₹10.63 crore
Sambhaji Nagar: ₹3.84 crore recovered out of ₹4.04 crore

Highlight: Near-complete recovery in Nagpur and Sambhaji Nagar reflects strong district-level enforcement.

Full Recovery Achieved in Select Districts

In a notable achievement, compensation has been recovered in entirety in several districts:

Nashik – ₹4.90 crore
Sindhudurg – ₹72 lakh
Solapur – ₹12 lakh
Chandrapur – ₹9 lakh

This demonstrates that complete recovery is achievable where revenue machinery acts swiftly.

Why This Matters for Homebuyers

Timely recovery of compensation reinforces confidence in the RERA dispute resolution mechanism. It assures homebuyers that regulatory orders are not merely symbolic but are backed by coercive recovery powers.

Highlight: The collaboration between MahaRERA and District Collectors has transformed compensation orders into real financial relief for affected buyers.

Conclusion

The recovery of ₹270 crore marks a major success for MahaRERA’s enforcement framework. With improved coordination, structured SOPs, and active district administration involvement, Maharashtra continues to set a benchmark in effective RERA implementation. As recoveries accelerate further, developer accountability and consumer confidence in the real estate sector are expected to strengthen.

Society MITR

Leave a Reply

Your email address will not be published. Required fields are marked *