MahaRERA Introduces New SOP for Faster Compensation Recovery for Homebuyers
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has introduced a Standard Operating Procedure (SOP) to expedite the recovery of compensation from developers in cases of non-compliance or defaults, providing timely relief to homebuyers.
MahareraCompensationReal EstateHomebuyersDevelopersReal Estate MaharashtraNov 22, 2025
For the first time, cases where a developer fails to pay compensation despite multiple opportunities will be referred to the principal civil court in the relevant jurisdiction for further action. Following such a referral, the developer may face imprisonment for up to three months. The authority said this provision is expected to strengthen recovery mechanisms and provide timely relief to homebuyers.
MahaRERA has set a 60-day timeline from the date of the order for compensation to be paid. Under the SOP, if a homebuyer does not receive compensation within this period, they must file a non-compliance application seeking recovery of the amount with interest, delayed possession interest, or compensation, as applicable.
MahaRERA will hear such applications within four weeks of receipt. If it is established prima facie that the developer has not complied with the order, the authority will grant a reasonable period for adherence. If the developer fails to comply within this timeframe, they may be required to submit an affidavit detailing all movable and immovable assets, bank accounts, and other investments.
To ensure recovery, a recovery warrant will then be issued to the relevant district collector to initiate attachment or seizure of assets and bank accounts. If the developer does not furnish details of their properties and financial holdings, the matter will be referred to the principal civil court for further action. Under the Code of Civil Procedure, such defaulting developers may face imprisonment of up to three months.
Left with no amicable resolution with the developer, often, homebuyers approach MahaRERA seeking relief on multiple issues ranging from failure to receive the apartments’ possession as per the deadline, sub-standard construction quality, lack of parking, missing amenities, etc. Such complaints are heard by MahaRERA’s designated adjudicating officers, who, in turn, on the merits of the case, order for compensation.
Frequently Asked Questions
What is MahaRERA's new SOP about?
MahaRERA's new SOP is aimed at improving the time-bound recovery of compensation from developers in cases of non-compliance or defaults, ensuring timely relief for homebuyers.
What happens if a developer fails to pay compensation?
If a developer fails to pay compensation despite multiple opportunities, the case will be referred to the principal civil court, and the developer may face imprisonment for up to three months.
How long do homebuyers have to seek recovery of compensation?
Homebuyers have 60 days from the date of the order to receive compensation. If they do not receive it within this period, they must file a non-compliance application with MahaRERA.
What enforcement measures will MahaRERA use to ensure recovery?
MahaRERA will issue a recovery warrant to the relevant district collector to initiate attachment or seizure of the developer's assets and bank accounts. If the developer does not provide asset details, the matter will be referred to the principal civil court.
Why do homebuyers approach MahaRERA for compensation?
Homebuyers approach MahaRERA for compensation when they face issues such as delayed possession, sub-standard construction quality, lack of parking, or missing amenities, and cannot resolve these issues amicably with the developer.
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