MahaRERA Introduces New SOP for Faster Compensation to Homebuyers
MahaRERA has introduced a new SOP to ensure faster and time-bound recovery of compensation for homebuyers in cases of developer default, with non-compliant developers facing legal action.
MahareraReal EstateCompensationHomebuyersDeveloper DefaultReal Estate MaharashtraNov 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.
This new SOP is a significant step towards ensuring that homebuyers receive the compensation they are entitled to in a timely manner. It also serves as a strong deterrent for developers who may otherwise ignore their legal obligations, thereby protecting the interests of homebuyers and promoting a more transparent and accountable real estate market.
Frequently Asked Questions
What is MahaRERA?
MahaRERA stands for the Maharashtra Real Estate Regulatory Authority. It is a regulatory body established to oversee and regulate the real estate sector in Maharashtra, ensuring transparency, accountability, and the protection of homebuyers' rights.
What is the new SOP introduced by MahaRERA?
The new SOP (Standard Operating Procedure) introduced by MahaRERA ensures faster and time-bound recovery of compensation for homebuyers in cases of developer default. It mandates that developers must pay compensation within 60 days from the date of the order.
What happens if a developer fails to comply with the compensation order?
If a developer fails to comply with the compensation order, the homebuyer can file a non-compliance application. MahaRERA will hear this application within four weeks. If non-compliance is established, the developer will be granted a reasonable extension. If they still fail to comply, their assets may be attached, and they may face legal action, including imprisonment for up to three months.
What types of complaints can homebuyers file with MahaRERA?
Homebuyers can file complaints with MahaRERA for various issues such as delayed possession, substandard construction, denial of parking spaces, and withholding of promised amenities. These complaints are adjudicated by MahaRERA’s designated Adjudicating Officers.
How does the new SOP benefit homebuyers?
The new SOP benefits homebuyers by ensuring they receive the compensation they are entitled to in a timely manner. It provides a clear and structured process for recovery, reduces the time and effort required to seek compensation, and acts as a deterrent for developers who may otherwise ignore their legal obligations.
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