MahaRERA Introduces New SOP for Faster Compensation to Homebuyers
MahaRERA has released a new SOP to ensure homebuyers receive compensation within 60 days in cases of developer default, with non-compliance leading to legal action.
MahareraReal EstateCompensationHomebuyersDeveloper DefaultReal EstateNov 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 faster, time-bound recovery of compensation awarded to homebuyers in cases of developer default. It mandates that compensation must be paid within 60 days from the date of the order.
What happens if a developer fails to pay compensation?
If a developer fails to pay compensation, the homebuyer can file a non-compliance application. MahaRERA will hear this application within four weeks and, if non-compliance is established, may grant a reasonable extension. If the developer still fails to comply, they may face further legal action, including asset disclosure and potential imprisonment.
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.
How does MahaRERA enforce the recovery of compensation?
MahaRERA enforces recovery by issuing 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.
What is the maximum penalty for non-compliance under the new SOP?
Under the new SOP, developers who fail to comply with the compensation order may face imprisonment for up to three months as per legal provisions.
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