MahaRERA Introduces New SOP for Timely Compensation Recovery from Developers
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has announced a new standard operating procedure (SOP) to ensure timely recovery of compensation for homebuyers, following directives from the Bombay High Court.
MahareraReal EstateCompensationSopHomebuyersReal Estate MaharashtraNov 22, 2025
The SOP mandates that developers who fail to pay compensation despite multiple opportunities will have their cases referred to the principal civil court of the area. Such defaulting developers may face imprisonment for up to three months under the provisions of the Code of Civil Procedure.
MahaRERA’s designated adjudicating officers determine compensation orders based on the merits of each case. Under the new SOP, homebuyers are expected to receive compensation within 60 days of the order. If the developer does not comply within this period, the homebuyer can file a non-compliance application with MahaRERA, which will be heard within four weeks.
Developers failing to adhere to the orders may be asked to submit an affidavit detailing their movable and immovable properties, bank accounts, and other investments. Subsequently, a recovery warrant can be issued to the district collector to attach or seize assets to recover dues.
If the developer continues to default even after the reasonable time granted, the case will be referred to the Principal Civil Court, and the developer may face imprisonment for up to three months, as stated by MahaRERA.
The authority said the SOP is intended to strictly implement court orders and strengthen homebuyers’ rights, ensuring compensation is recovered efficiently and in a time-bound manner. This initiative is expected to provide a significant boost to the confidence of homebuyers and contribute to the overall stability of the real estate market in Maharashtra.
Frequently Asked Questions
What is MahaRERA?
MahaRERA stands for Maharashtra Real Estate Regulatory Authority. It is a regulatory body established to protect the interests of homebuyers and ensure transparency and accountability in the real estate sector in Maharashtra.
What is the new SOP introduced by MahaRERA?
The new SOP introduced by MahaRERA is a standard operating procedure aimed at ensuring timely recovery of compensation for homebuyers from developers who fail to meet their obligations.
What are the consequences for developers who do not comply with the compensation orders?
Developers who do not comply with the compensation orders may have their cases referred to the principal civil court, and they may face imprisonment for up to three months under the Code of Civil Procedure.
How long do homebuyers have to wait to receive compensation under the new SOP?
Under the new SOP, homebuyers are expected to receive compensation within 60 days of the order. If the developer does not comply, the homebuyer can file a non-compliance application with MahaRERA, which will be heard within four weeks.
What happens if a developer continues to default after being granted a reasonable time to comply?
If a developer continues to default even after being granted a reasonable time to comply, the case will be referred to the Principal Civil Court, and the developer may face imprisonment for up to three months.
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