MahaRERA Takes Strict Action Against Gagan Realtors, Orders Recovery of ₹17.29 Lakh

In a stern action against alleged non-compliance by a developer, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has issued a recovery warrant against Gagan Realtors, Sushil Agrawal, and other concerned respondents. The authority has directed the recovery of ₹17.29 lakh from the builder in favour of a homebuyer who was denied a refund despite an earlier order.

The order was passed by MahaRERA adjudicating officer A.N. Sirsikar in a compliance application filed by complainant Jaywant Mungekar. Mungekar approached the authority after the developer allegedly failed to honour a previous MahaRERA ruling dated August 5, 2025, which had directed the builder to refund the amount with interest under Rule 18 of the RERA Rules.

According to the proceedings, the complainant sought recovery of the principal amount of ₹15.82 lakh, along with accrued interest at 10.07 percent per annum, taking the total recoverable amount to ₹17.29 lakh as of February 12, 2026. MahaRERA ruled that the amount must now be recovered as arrears of land revenue through the Pune District Collector, giving the order the force of a government recovery proceeding.

During the hearing, the respondent attempted to distance itself from liability by arguing that the agreement had been executed by another entity, Gagan Lifespace, and not Gagan Realtors. However, MahaRERA rejected the defence, observing that the original refund order had been passed specifically against Gagan Realtors, and that the execution stage could not be used to reopen or modify the final order.

In a significant observation, the authority held that once a builder fails to comply with a final refund direction, recovery proceedings must continue against the named respondent without delay, especially in cases where homebuyers have already waited beyond the prescribed timeline for justice.

MahaRERA has now directed the District Collector, Pune, to execute the warrant, recover the outstanding dues from the developer, and transfer the amount to the complainant, while also ensuring that additional interest at 10.07 percent per annum continues from February 12, 2026 until the full amount is realised.

The authority further ordered the district administration to submit a compliance report after completion of the recovery process, signalling a tougher stance against developers who ignore binding orders and prolong the distress of homebuyers.