MahaRERA Introduces SOP to Enforce Compensation Orders: 60-Day Grace Period and Asset Recovery Warrants
In a significant move to address the rampant non-compliance by errant developers, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has issued a detailed Standard Operating Procedure (SOP) to recover interest, penalty, and compensation awarded to homebuyers. The SOP, issued through Circular No. 51/2025 dated 18 November 2025, comes after a strong directive from the Bombay High Court in October 2025, which held that RERA compensation orders must be executed like civil court decrees, using all the machinery available under the Civil Procedure Code (CPC).
For years, homebuyers with favorable MahaRERA orders have struggled to obtain actual relief, as developers often ignored the directives or dragged the execution process indefinitely. The High Court, in Writ Petition 3565 of 2025, made it clear that such orders must not remain on paper and held that Order XXI Rule 41 of the CPC—relating to disclosure of assets in execution—applies squarely to RERA enforcement. This direction has now prompted MahaRERA to create a formal, time-bound recovery system.
Under the newly introduced SOP, a complainant can file an online non-compliance (execution) application after a 60-day period from the date the original order is passed, if the developer has failed to comply. Once filed, the application must be listed for hearing within four weeks. At the first hearing, if non-compliance is evident, the Authority will ask the developer to comply within a reasonable period and adjourn the matter for verification. If the developer still fails to comply, MahaRERA will direct them to file an affidavit disclosing all movable and immovable assets, including bank accounts and investments.
If the developer refuses to file the asset disclosure affidavit, the Authority may summon them for personal examination and require the production of books or documents. Should the developer continue to withhold information or refuse to comply, MahaRERA will record this and proceed to decide the execution application on merits. The circular notes that, depending on the facts of the case, the Authority may impose an additional penalty for non-compliance and issue a Recovery Warrant (Revenue Recovery Certificate) to the District Collector for attaching and auctioning the developer’s movable and immovable properties, including bank accounts.
In some situations, the Authority may need to invoke Section 40(2) of the RERA Act read with Rule 4 of the state’s RERA Rules, and send the matter to the principal civil court of original jurisdiction. This step is necessary in cases requiring procedures such as the detention of a judgment debtor, since MahaRERA does not have its own civil prison facilities. Once the Collector or the civil court provides details of the developer’s assets, MahaRERA will amend the recovery warrant and direct the Collector to proceed with attachment and auction until the dues are recovered.
The circular also directs MahaRERA’s IT Department to update its digital infrastructure so that the entire process—from filing non-compliance applications to issuing recovery warrants—can be managed smoothly through the online system. The SOP takes immediate effect, finally giving homebuyers a structured pathway to enforce compensation orders that have so far remained difficult to realize.
This move is expected to bring a significant change in the real estate sector, ensuring that homebuyers are not left in the lurch due to the non-compliance of developers. MahaRERA's stringent measures and the support from the Bombay High Court are likely to instill a sense of accountability and transparency in the industry, ultimately protecting the interests of homebuyers.
