MahaRERA Recovers Rs 270 Crore for Homebuyers: Tightening Grip on Non-Compliant Builders

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has made significant strides in protecting homebuyers, recovering nearly Rs 270 crore in compensation since its inception in May 2017. This achievement is a result of the concerted efforts by MahaRERA and the district collector offices across the state.

The recovery covers cases spanning from 2017 to 2025 and reflects a growing enforcement push against errant real estate developers who failed to comply with compensation orders issued by the regulator. However, experts on real estate issues have termed this 'insufficient' and said that this recovery amount should run into higher numbers, as the Rs 270 crore is just 'a tip of the iceberg'.

Recoveries have risen steadily since MahaRERA's launch. Between 2017 and November 2024, MahaRERA recovered around Rs 200 crore for affected homebuyers. In 2025 alone, an additional Rs 70 crore was recovered, taking the total to Rs 268.87 crore. The authority has so far issued recovery warrants amounting to Rs 792 crore in favor of 1,291 complainants. However, recovery has been affected in some cases due to legal proceedings.

Cases worth nearly Rs 103 crore are currently pending before the National Company Law Tribunal (NCLT), where recovery has been restricted due to insolvency proceedings. MahaRERA officials clarified that as a quasi-judicial body, the authority can only pass recovery orders on a case-by-case basis. The actual execution of these orders lies with the district revenue machinery.

Under Section 40(1) of the Real Estate Regulation and Development Act, 2016, only district collectors are empowered to recover unpaid compensation as arrears of land revenue, following provisions of the Maharashtra Land Revenue Code. When developers fail to pay compensation within the stipulated time, MahaRERA forwards recovery warrants to the concerned district collectors for enforcement.

Key points on the recovery mechanism include: - MahaRERA issues recovery warrants after passing final orders - District collectors execute recovery as land revenue dues - Delays occur if developers approach NCLT or higher courts - Recovery depends on the availability of attachable assets

This system has enabled substantial recoveries, especially in major urban districts, despite legal and procedural hurdles. Mumbai Suburban district has recovered the highest amount so far, with Rs 112 crore collected out of Rs 352 crore due. Mumbai City follows with Rs 53 crore recovered against dues of Rs 104 crore. Pune district has recovered Rs 47 crore out of Rs 195 crore, while Thane City has recovered Rs 23 crore against dues of Rs 74.63 crore. In Raigad district, including Alibaug, Rs 9 crore has been recovered from total dues of Rs 24 crore.

District-wise recovery highlights include: - Mumbai City: 28 warrants executed in 18 projects - Mumbai Suburban: 134 warrants executed in 66 projects - Pune: 71 warrants executed in 44 projects - Thane: 48 warrants executed in 25 projects

In several districts, compensation has been recovered in full. Nashik has recovered Rs 4.90 crore against dues of Rs 3.85 crore, reflecting recovery across six warrants. Sindhudurg recovered Rs 72 lakh from two projects, while Solapur recovered Rs 12 lakh from a single complaint. Chandrapur also recorded full recovery of Rs 9 lakh from one case. Other notable recoveries include Nagpur, where Rs 9.65 crore was recovered out of Rs 10.63 crore due, and Sambhaji Nagar, where Rs 3.84 crore was recovered out of Rs 4.04 crore.

Despite the progress, a significant amount remains unrecovered, mainly due to pending litigation and insolvency proceedings. MahaRERA officials said efforts are continuing in coordination with district collectors to expedite recoveries wherever legally permissible. At the end, officials reiterated that homebuyers should approach MahaRERA with confidence, as enforcement mechanisms are steadily improving. The authority said recoveries in coming months will depend on court outcomes and the ability of district administrations to act swiftly against defaulting developers.