MahaRERA Introduces SOP to Fast-Track Compensation Recovery for Homebuyers
MahaRERA has issued a comprehensive standard operating procedure (SOP) to expedite the recovery of compensation from developers who fail to comply with its orders, setting a 60-day timeline and introducing severe penalties.
MahareraCompensation RecoveryReal EstateHomebuyersSopReal Estate MaharashtraNov 22, 2025
Senior MahaRERA officials stated that the new SOP is designed to ensure the strict implementation of the High Court's order and provide time-bound relief to homebuyers. The authority has made it mandatory for developers to compensate aggrieved homebuyers within 60 days of an order issued by MahaRERA's adjudicating officers.
If the payment is not made within this period, the homebuyer must file a non-compliance application. Following this, MahaRERA will hear the matter within four weeks. If prima facie non-compliance is established, the developer will be given a final 'reasonable' deadline to comply with the order. If the developers still fail to comply, they will be required to submit an affidavit detailing all their movable and immovable assets, bank accounts, investments, and other financial holdings.
This affidavit is aimed at enabling enforcement action without further delay. Following the submission of the affidavit, MahaRERA will issue a recovery warrant to the district collector concerned, authorizing the attachment or seizure of the developer's assets and accounts. Officials noted that this step is intended to ensure that recovery does not stall due to a lack of disclosure or cooperation from builders.
For the first time, cases involving continued refusal to pay compensation despite repeated opportunities will be escalated to the Principal Civil Court of the respective jurisdiction. Under the Civil Procedure Code (CPC), the court can order imprisonment of up to three months for defaulting developers who wilfully evade payment, stated MahaRERA officials.
'This SOP is formulated to improve recovery in a time-bound manner and ensure developers cannot indefinitely delay payments. It is expected to immensely help in providing timely relief to homebuyers,' a senior MahaRERA official said. Housing activists and legal experts have welcomed the move.
Ramesh Prabhu, chairman of the Maharashtra Society Welfare Association, said, 'We have been pushing for the speedy implementation of RERA orders. Setting clear timelines for every stage will help all stakeholders and reduce prolonged delays.' Another expert noted that the SOP is a positive step towards creating a clearer, more accountable execution framework. 'One has to wait for the implementation, but the structure is encouraging,' the expert added.
Homebuyers, however, remain cautiously optimistic. A litigant who filed a compensation case before MahaRERA said, 'The circular is promising, but the real challenge is execution. We hope this finally brings relief.' A senior citizen from Mumbai, awaiting the execution of a recovery warrant for more than two years, pointed out gaps in the current system. 'The recovery warrant portal lacks real-time updates or a system to track execution status. Many have been waiting for years. We hope the new SOP brings long-overdue accountability,' he said.
A housing expert added that the new mechanism, backed by court directives, will strengthen enforcement and ensure that developers who repeatedly ignore orders face concrete consequences. 'This is the first time developers may face imprisonment for wilful non-compliance,' an official said.
Frequently Asked Questions
What is the new SOP issued by MahaRERA?
The new SOP issued by MahaRERA is a comprehensive Standard Operating Procedure designed to expedite the recovery of compensation from developers who fail to comply with MahaRERA's orders. It sets a 60-day timeline for developers to compensate aggrieved homebuyers and outlines strict escalation measures.
What happens if a developer fails to comply within the 60-day timeline?
If a developer fails to comply within the 60-day timeline, the homebuyer must file a non-compliance application. MahaRERA will then hear the matter within four weeks. If non-compliance is established, the developer will be given a final 'reasonable' deadline to comply. If they still fail to comply, they will be required to submit an affidavit detailing their assets and financial holdings.
What are the penalties for non-compliance?
Penalties for non-compliance include the attachment or seizure of the developer's assets and accounts. In severe cases, the matter can be escalated to the Principal Civil Court, which can order imprisonment of up to three months for defaulting developers who wilfully evade payment.
How does the new SOP benefit homebuyers?
The new SOP benefits homebuyers by ensuring a time-bound process for compensation recovery and providing clear timelines for every stage. It also introduces severe penalties for non-compliance, which can help in reducing prolonged delays and ensuring timely relief for homebuyers.
What is the reaction from housing activists and experts?
Housing activists and legal experts have welcomed the new SOP, stating that it is a positive step towards creating a clearer and more accountable execution framework. They believe it will help reduce prolonged delays and provide timely relief to homebuyers, although they remain cautiously optimistic about its implementation.
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