MahaRERA Introduces Strict New SOP for Compensation Recovery; Defaulting Developers Face Imprisonment
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has issued a new Standard Operating Procedure (SOP) to expedite and enhance the recovery of compensation for aggrieved homebuyers. Developers who fail to comply with compensation orders may face imprisonment.
MahareraCompensation RecoveryReal EstateHomebuyersDevelopersReal Estate MaharashtraNov 22, 2025
The SOP, released recently through an official circular following directives from the Bombay High Court, introduces a clearer and stricter process to ensure developers comply with compensation orders.
Erring Developers May Face Imprisonment Under New Rules
For the first time, MahaRERA has laid down provisions under which developers who fail to pay compensation despite repeated opportunities may be referred to the Principal Civil Court of their respective jurisdiction. In such cases, erring builders could face imprisonment of up to three months, in accordance with the Code of Civil Procedure. The authority believes this stern measure will strengthen enforcement and offer timely relief to aggrieved homebuyers, said an official.
Homebuyers Approach MahaRERA for Unresolved Developer Disputes
Homebuyers typically approach MahaRERA when disputes with developers remain unresolved — ranging from delays in possession, poor construction quality, lack of promised amenities, and parking issues. These complaints are adjudicated by designated Adjudicating Officers, who award compensation based on the merits of each case. However, recovery of the awarded amount has often been a prolonged challenge.
SOP Aims for Compensation Within 60 Days
This latest SOP announced is to ensure strict implementation of the Honourable Bombay High Court’s orders and also to provide relief to the homebuyers. MahaRERA expects the homebuyers to be compensated within 60 days from the order’s date, said an official.
Non-Compliance Application Mandatory After 60 Days
As per the SOP, if the homebuyer is not compensated within 60 days, the individual will have to file an application on non-compliance for the recovery of the amount with interest or interest for delayed possession or compensation, as the case may be.
MahaRERA to Hear Non-Compliance Applications Within 4 Weeks
MahaRERA shall hear the non-compliance application within 4 weeks from receipt of the same. If it is established prima facie that the developer has failed to comply with the order, reasonable time will be granted to adhere to the order. On the reasonable time period coming to an end, if the developer continues to err, s/he may be asked to submit an affidavit mentioning details of all movable as well as immovable assets, bank accounts, and other investments.
Recovery Warrant to Be Sent to District Collector
According to MahaRERA, to ensure that the compensation is duly recovered, a Recovery Warrant will be sent to the District Collector concerned to initiate seizing or attaching the assets and bank accounts.
Failure to Submit Asset Details May Lead to Court Action, Imprisonment
If the developer fails to provide the details of immovable and movable properties, bank accounts, and other investments, the case will be sent to the Principal Civil Court of that area for further action. As per the provisions of the Code of Civil Procedure, such defaulting developers may be imprisoned for up to 3 months, an official further added.
Developers Evading Compliance Face Escalation to Civil Court
To ensure recovery, MahaRERA will then issue a Recovery Warrant to the District Collector for attachment or seizure of assets and bank accounts. If a developer refuses to furnish details of their assets or continues to evade compliance, MahaRERA will escalate the matter to the Principal Civil Court, where proceedings could result in imprisonment of up to three months, an official added.
New SOP Designed to Strengthen Enforcement and Protect Homebuyers
The authority has emphasized that the new SOP is designed to uphold the Bombay High Court’s directives and significantly improve the experience of homebuyers seeking justice. Officials said the mechanism will not only expedite compensation recovery but also enhance accountability among developers.
Frequently Asked Questions
What is the new SOP issued by MahaRERA?
The new SOP issued by MahaRERA is designed to speed up and improve the recovery of compensation for aggrieved homebuyers by providing a clearer and stricter process for developers to comply with compensation orders.
What happens if a developer fails to pay compensation within 60 days?
If a developer fails to pay compensation within 60 days, the homebuyer must file a non-compliance application. If the developer continues to evade compliance, they may face imprisonment of up to three months.
Who can approach MahaRERA for unresolved disputes with developers?
Homebuyers who face issues such as delays in possession, poor construction quality, lack of amenities, and parking problems can approach MahaRERA for unresolved disputes with developers.
How does MahaRERA ensure the recovery of compensation?
MahaRERA will hear non-compliance applications within 4 weeks and, if the developer fails to comply, will issue a Recovery Warrant to the District Collector to seize or attach assets and bank accounts.
What is the maximum penalty for defaulting developers under the new SOP?
Defaulting developers may be imprisoned for up to three months if they fail to provide details of their assets or continue to evade compliance with compensation orders.
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