The Maharashtra Real Estate Regulatory Authority (MahaRERA) has announced a new Standard Operating Procedure (SOP) aimed at accelerating compensation recovery from developers who fail to comply with its orders. The revised SOP has been designed in line with directions issued by the Bombay High Court, with the objective of creating a faster and more structured enforcement mechanism for homebuyer relief.
Under the new framework, developers are required to make compensation payments within 60 days of an order issued by MahaRERA’s adjudicating officers. If the developer does not comply within this timeframe, the aggrieved homebuyer can submit a non-compliance application. Once such an application is filed, MahaRERA will schedule a hearing within a four-week period to assess the case.
If the authority finds prima facie evidence of non-compliance, it may issue a final deadline to the developer. Should the developer still fail to follow the order, the SOP mandates the submission of an affidavit containing full disclosure of movable and immovable assets, including bank accounts and investments. This affidavit becomes the basis for further enforcement actions.
One of the strongest provisions in the new SOP is the ability to issue a recovery warrant to the district collector. This enables authorities to initiate attachment or seizure of the defaulting developer’s assets to recover the due amount. Persistent non-compliance may also be escalated to the Principal Civil Court under the Civil Procedure Code, where developers could face penalties, including up to three months of imprisonment for willful default.
Officials state that the SOP is designed to offer homebuyers a clear, time-bound recovery process and prevent delays caused by prolonged non-compliance. The measures aim to strengthen accountability within Maharashtra’s real estate sector and ensure that compensation orders are implemented efficiently.
The new SOP marks a significant step toward improving transparency and enforcement within the regulatory framework. With stricter timelines and stronger penalties, MahaRERA aims to streamline compensation recovery and reinforce the rights of homebuyers across the state.
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