MahaRERA Introduces New SOP for Faster Compensation to Homebuyers
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has introduced a new Standard Operating Procedure (SOP) to ensure homebuyers receive compensation within 60 days in cases of developer default. This move aims to strengthen enforcement and provide quicker relief to aggrieved homebuyers.
MahareraReal EstateHomebuyersCompensationDevelopersReal Estate PuneNov 22, 2025
For the first time, developers who fail to pay compensation despite being given adequate opportunities will have their cases forwarded to the Principal Civil Court of the concerned jurisdiction. Once the matter is escalated, the developer may face imprisonment for up to three months under provisions of the Code of Civil Procedure. MahaRERA officials stated that this measure is expected to significantly improve recovery rates and reinforce accountability.
Homebuyers often approach MahaRERA when developers fail to deliver possession on time, provide substandard construction, deny parking spaces, or withhold promised amenities. Such complaints are adjudicated by MahaRERA’s designated Adjudicating Officers, who issue compensation orders based on the merits of each case.
The newly issued SOP mandates that compensation must be paid within 60 days from the date of the order. If the developer does not comply, the homebuyer will need to file a non-compliance application seeking recovery of the amount with interest, delayed possession interest, or other compensation, depending on the order.
MahaRERA will hear such non-compliance applications within four weeks. If prima facie non-compliance is established, the developer will be granted a reasonable extension to fulfil the order. If the developer still fails to comply, they may be directed to submit an affidavit disclosing all movable and immovable assets, bank accounts, and other investments.
To enforce recovery, MahaRERA will issue a Recovery Warrant to the District Collector, authorising the attachment or seizure of the developer’s assets and bank accounts. If the developer does not provide the required asset details, the case will be transferred to the Principal Civil Court for further action, which may include imprisonment for up to three months as per legal provisions.
Frequently Asked Questions
What is the new SOP introduced by MahaRERA?
The new SOP introduced by MahaRERA ensures that homebuyers receive compensation within 60 days in cases of developer default. It includes measures to escalate non-compliance to the Principal Civil Court and potential imprisonment for developers.
What happens if a developer fails to pay compensation within 60 days?
If a developer fails to pay compensation within 60 days, the homebuyer can file a non-compliance application. MahaRERA will hear this application within four weeks and, if non-compliance is established, may direct the developer to disclose their assets and face further legal action.
What are the common reasons homebuyers approach MahaRERA?
Homebuyers often approach MahaRERA when developers fail to deliver possession on time, provide substandard construction, deny parking spaces, or withhold promised amenities.
Who adjudicates the complaints filed by homebuyers?
Complaints filed by homebuyers are adjudicated by MahaRERA’s designated Adjudicating Officers, who issue compensation orders based on the merits of each case.
What is the maximum penalty for non-compliance by developers?
The maximum penalty for non-compliance by developers includes imprisonment for up to three months under the provisions of the Code of Civil Procedure, along with the attachment or seizure of their assets and bank accounts.
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