MahaRERA Introduces SOP for Timely Compensation Recovery from Developers
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has introduced a standard operating procedure (SOP) to ensure timely compensation for homebuyers, following directives from the Bombay High Court (HC).
MahareraReal EstateCompensationHomebuyersDevelopersReal EstateNov 22, 2025
Such defaulting developers may face imprisonment for up to three months under the provisions of the Code of Civil Procedure. The move is aimed at providing faster relief to homebuyers who approach MahaRERA with complaints ranging from delayed possession and sub-standard construction to missing amenities or parking spaces.
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. MahaRERA stated that the SOP is intended to strictly implement court orders and strengthen homebuyers’ rights, ensuring compensation is recovered efficiently and in a time-bound manner.
Frequently Asked Questions
What is MahaRERA?
MahaRERA stands for Maharashtra Real Estate Regulatory Authority. It is a regulatory body established to protect the rights of homebuyers and ensure transparency and accountability in the real estate sector in Maharashtra.
What does the new SOP mandate?
The new 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. Defaulting developers may face imprisonment for up to three months under the Code of Civil Procedure.
What types of complaints can homebuyers file with MahaRERA?
Homebuyers can file complaints with MahaRERA for issues such as delayed possession, sub-standard construction, missing amenities, and parking spaces.
How long does it take for homebuyers 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 within this period, 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 on compensation orders?
If a 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.
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