MahaRERA Issues New Guidelines to Expedite Homebuyer Compensation
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has introduced a new Standard Operating Procedure (SOP) to ensure timely compensation for aggrieved homebuyers within 60 days of the order.
MahareraReal EstateCompensationHomebuyersDevelopersReal EstateNov 22, 2025
This latest SOP is designed to ensure the strict implementation of the Bombay High Court’s orders and to provide relief to homebuyers. According to the MahaRERA statement, homebuyers are expected to be compensated within 60 days from the order’s date.
For the first time, the case of any developer failing to pay the compensation amount despite sufficient opportunities will be sent to the Principal Civil Court of the respective area for further action. Upon taking this action, the erring builder may face imprisonment for a term of up to 3 months. This provision is expected to greatly aid in recovering compensation and providing timely relief to homebuyers.
According to the statement, homebuyers often approach MahaRERA seeking relief on multiple issues, ranging from failure to receive possession of the apartment by the deadline to sub-standard construction quality, lack of parking, and missing amenities. Such complaints are heard by MahaRERA’s designated Adjudicating Officers, who, on the merits of the case, order compensation.
As per the SOP, if the homebuyer is not compensated within 60 days, the individual will have to file an application for non-compliance for the recovery of the amount with interest or compensation, as the case may be. After receiving the complaint, MahaRERA shall hear the non-compliance application within 4 weeks from the date of receipt. If it is established prima facie that the developer has failed to comply with the order, a reasonable time will be granted to adhere to the order. If the developer continues to err after the reasonable time period ends, they may be asked to submit an affidavit detailing all movable and immovable assets, bank accounts, and other investments.
To ensure that the compensation is duly recovered, a Recovery Warrant will be sent to the District Collector concerned to initiate the seizure or attachment of assets and bank accounts. If the developer fails to provide details of immovable and movable properties, bank accounts, and other investments, the case will be referred to the Principal Civil Court of that area for further action. According to the provisions of the Code of Civil Procedure, defaulting developers may be imprisoned for up to three months.
Legal experts have mixed reactions to the new SOP. Advocate Sunil M. Kewalramani, proprietor at Sunil M Kewalramani and Associates, stated, “While MahaRERA’s circular represents a positive step toward creating a structured execution framework in line with judicial directions, it suffers from vague timelines that will extend the disposal timelines for execution applications in comparison to the existing disposal timelines prior to the issuance of this Circular.” He added, “The Circular’s actual impact will only become clear once MahaRERA implements it effectively and in its true spirit.”
Trupti Daphtary, a Mumbai-based solicitor, noted, “The MahaRERA recovery warrant portal currently lacks real-time updates, a system to track warrant status, and key particulars. Warrant data is also not digitally linked to pending appeals or matters where stay orders have been granted. Execution of orders remains the biggest hurdle for allottees; stricter timelines and minimal adjournments are essential.”
Frequently Asked Questions
What is the new SOP issued by MahaRERA?
The new SOP issued by MahaRERA is designed to expedite the recovery of compensation from developers in a time-bound manner for aggrieved homebuyers. It aims to ensure that homebuyers receive their compensation within 60 days from the order’s date.
What happens if a developer fails to pay the compensation amount?
If a developer fails to pay the compensation amount despite sufficient opportunities, their case will be sent to the Principal Civil Court of the respective area for further action. The erring builder may face imprisonment for up to 3 months.
What are the common issues homebuyers approach MahaRERA for?
Homebuyers often approach MahaRERA with issues such as failure to receive possession of the apartment by the deadline, sub-standard construction quality, lack of parking, and missing amenities.
How long does MahaRERA have to hear a non-compliance application?
MahaRERA shall hear the non-compliance application within 4 weeks from the date of receipt. If it is established prima facie that the developer has failed to comply with the order, a reasonable time will be granted to adhere to the order.
What are the limitations of the new SOP according to legal experts?
Legal experts note that the new SOP has vague timelines which may extend the disposal timelines for execution applications. Additionally, the MahaRERA recovery warrant portal lacks real-time updates and a system to track warrant status, which can hinder the execution of orders.
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