MahaRERA Recovers ₹269 Crore for Maharashtra Homebuyers Since 2017

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has managed to recover around ₹269 crore for homebuyers in the state since its formation in May 2017. This significant achievement underscores the increasing importance of MahaRERA in fostering responsibility and transparency in the home buying industry in Maharashtra.

According to government statistics, the authority has recovered ₹268.87 crore in conjunction with district collectors. The recovery is based on complaints filed by homebuyers against developers for issues such as delays, non-adherence to agreements, or dishonoring refund demands. Over the eight and a half-year period, MahaRERA has passed orders worth ₹792 crores in recovery in favor of 1,291 complainants. While a substantial portion of this amount has been recovered, recovery proceedings worth ₹103 crores are still pending due to cases before the National Company Law Tribunal (NCLT).

Stalled cases are often linked to developers undergoing insolvency proceedings, where the NCLT has imposed restrictions on the execution of recovery actions. Consequently, even though MahaRERA has issued orders in favor of homebuyers, the enforcement of these orders is contingent on the outcome of insolvency processes, often delaying relief to affected buyers.

A district-wise breakdown of the recovered amount reveals an uneven pace of enforcement across regions. The Mumbai Suburban district is the top contributor with recoveries of ₹112 crore against a total due amount of ₹352 crore. This reflects both the high concentration of real estate projects in the region and the numerous disputes involving delayed or stalled developments.

Mumbai City has recovered ₹53 crore out of ₹104 crore due, while Pune, one of Maharashtra's largest residential markets, has seen recoveries of ₹47 crore against dues of ₹196 crore. Thane City has recorded recoveries of ₹23 crore out of ₹74 crore, and Alibaug has recovered ₹9.5 crore from a due amount of ₹24 crore.

On the other hand, a few smaller jurisdictions have successfully recovered the entire amount of compensation awarded to their respective applicants by MahaRERA. Recoveries of the total amount of compensation have been achieved to the tune of ₹4.90 crores in Nashik, ₹72 lakhs in Sindhudurg, ₹12 lakhs in Solapur, and ₹9 lakhs in Chandrapur.

MahaRERA operates as a quasi-judicial authority under the Real Estate (Regulation and Development) Act, 2016. Its primary role involves deciding cases for disputes between buyers and builders, passing directions for refunds or compensation, and issuing orders for recovery in case of non-compliance by builders. However, the recovery cases cannot be initiated by MahaRERA alone.

The enforcement of recovery orders is the responsibility of the state's revenue machinery, specifically the district collectors. The recovery warrant issued by MahaRERA must be transmitted to the respective district collector. According to Section 40(1) of the RERA Act, district collectors have the mechanism to recover the amount as arrears of land revenue as provided by the Maharashtra Land Revenue Code.

Experts acknowledge the effectiveness of the regulator, as evidenced by the recovery statistics. However, they also point to the significant gap between the total orders for recovery (₹792 crores) and the actual recovery achieved (₹268.87 crores) as a cause for concern. The increased number of cases with the NCLT has added complexity to the recovery of funds. If a developer has gone into insolvency, homebuyers are likely to be among the creditors, and recovery becomes uncertain.

Despite these challenges, MahaRERA officials claim that the authority has increased coordination with district administrations to expedite recoveries wherever possible. This enhanced collaboration aims to provide timely relief to affected homebuyers and maintain the integrity of the real estate market in Maharashtra.