MahaRERA Takes Strict Action to Recover Funds for Homebuyers
Thousands of homebuyers awaiting refunds and compensation from errant developers may finally see movement, after the Maharashtra Real Estate Regulatory Authority (MahaRERA) issued a stern directive to district administrations to strictly enforce recovery warrants against defaulting promoters.
In an official communication sent to district collectors across the state, MahaRERA Chairperson Manoj Saunik raised concerns that several recovery warrants issued by the authority were being returned without exhausting the full range of statutory remedies available under the Real Estate (Regulation and Development) Act, 2016 and the Maharashtra Land Revenue Code, 1966. The failure has led to prolonged non-compliance by developers and continued hardship for homebuyers, the letter read.
The said communication was obtained by Advocate Godfrey Pimenta, who practices in MahaRERA under the Right to Information Act. The directive follows concerns raised at the national level. During a PRAGATI meeting held in May 2025, Prime Minister Narendra Modi reportedly expressed displeasure over the slow pace of recovery proceedings in Maharashtra, prompting the state’s chief secretary to instruct collectors to ensure faster enforcement.
Warrants Returned
- MahaRERA observed that district revenue authorities returned recovery warrants without invoking mechanisms available under revenue law. - Under Section 40(1) of RERA, amounts can be recovered as arrears of land revenue. - The Maharashtra Land Revenue Code gives collectors sweeping authority for seizure and sale of assets to recover dues.
Powers to District Administration
- Collectors can invoke multiple provisions of revenue law to enforce recovery, including attaching movable and immovable property, auctioning assets, and taking other coercive steps permitted under the code. - Proceedings can be transferred under the Revenue Recovery Act, 1890, allowing authorities in another district to carry out the recovery. - Officials are asked to follow procedures similar to execution proceedings under the Code of Civil Procedure, 1908, including directing promoters to disclose their assets on affidavit, attaching debts and receivables, and selling property required to satisfy the recoverable amount.
Activist Reacts
Godfrey Pimenta, a housing rights activist and advocate before MahaRERA, welcomed the circular directing district collectors to execute recovery warrants. However, he noted that delays often occur as unscrupulous developers, allegedly colluding with corrupt tahsildar officials, obstruct the process. Such stalling undermines the regulatory framework and erodes homebuyers’ confidence. Monitoring, with periodic status reports from collectors, and a transparent tracking mechanism with consistent follow-up, will ensure accountability and prompt execution of recovery warrants.
Tracking Builder Assets
- Authorities are to trace attachable assets of defaulting promoters and their directors/partners. - Verification of land ownership records, property registrations, and transport department records. - Corporate filings can also be examined to track company finances, registered charges, and receivables. - Information may be sought from the Income Tax Department to identify hidden assets. - Appropriate civil or criminal action to be initiated against developers making false disclosures.
Project Details
- Total registered projects: 53,434 - Total complaints received: 33,806 - Total complaints resolved: 27,582 - Pending cases: 6,224
Source: MahaRERA
