The Maharashtra Real Estate Regulatory Authority (MahaRERA) has introduced a new Standard Operating Procedure (SOP) to make sure homebuyers receive court-ordered compensation without unnecessary delays.
For the first time, builders who refuse to follow compensation orders may face civil court action and even up to three months of imprisonment.
This new SOP has been created as per the directives of the Bombay High Court.
It aims to make the recovery process faster and easier, as it previously took several months.
MahaRERA has issued a circular explaining the new procedure.
The SOP allows MahaRERA to take a builder to civil court if they repeatedly ignore compensation orders.
This change brings hope to homebuyers dealing with delayed projects, incomplete amenities, and poor construction.
According to MahaRERA, this new provision will greatly help in recovering compensation and providing timely relief to affected buyers.
What MahaRERA Officials Explained
MahaRERA officials stated that most complaints are filed when buyers do not get possession on time or face issues such as missing amenities or lack of parking space.
These complaints are reviewed by officials, who then decide the compensation amount. Under the new system, builders must pay the ordered compensation within 60 days.
If they fail to do so, homebuyers can file a non-compliance complaint and request interest, penalty for delayed possession, or full compensation.
MahaRERA will address such applications within four weeks. If the builder still does not pay, the authority will give a final reasonable deadline.
If the builder still fails, they must submit a mandatory affidavit listing all movable and immovable properties, bank accounts, and investments.
This is to ensure the builder does not hide assets and to help in recovering the money.
Action Through Civil Court and Attachment of Properties
After receiving the affidavit, MahaRERA will issue a recovery warrant to the district collector. The collector will then begin attaching the builder’s properties and bank accounts.
If a developer refuses to share property details, the case will be handed over to the main civil court.
Under the Code of Civil Procedure, the court can sentence the builder to up to three months in jail.
A Major Reform for Homebuyers
Officials say this SOP is an important reform that closes loopholes previously used by developers to delay payments.
MahaRERA has confirmed that they will strictly follow High Court orders to provide quicker relief to homebuyers.
This step is expected to improve accountability and discipline in Maharashtra’s real estate sector.
