Mumbai, 22nd November 2025: The Maharashtra Real Estate Regulatory Authority (MahaRERA) has formulated Standard Operating Procedure (SOP) to improve recovery of compensation in a time bound manner for the homebuyers. The compensation is recovered from a developer on account of various defaults.
A circular explaining the SOP has been released by MahaRERA, as per the directions of Honourable Bombay High Court.
Hereafter, for the first time, the case of any developer failing to pay the compensation amount despite sufficient opportunities will be sent to the Principal Civil Court of the respective area for further action. Upon this action, the erring builder may have to face prison for a term of up to 3 months. This provision is expected to immensely help in recovering compensation and providing timely relief to the home buyers.
Left with no amicable resolution with the developer, often, home buyers approach MahaRERA seeking relief on multiple issues ranging from failure to receive apartment’s possession as per the deadline, sub-standard construction quality, lack of parking, missing amenities, etc. Such complaints are heard by MahaRERA’s designated Adjudicating Officers, who in turn, on the merits of the case, order for compensation.
This latest SOP announced is to ensure strict implementation of Honourable Bombay High Court’s orders and also to provide relief to the homebuyers. MahaRERA expects the homebuyers to be compensated within 60 days from the order’s date.
As per the SOP, if the homebuyer is not compensated within 60 days, the individual will have to file an application on non-compliance for the recovery of the amount with interest or interest for delayed possession or compensation, as the case may be.
MahaRERA shall hear the non-compliance application within 4 weeks from receipt of the same. If it is established prima facie that the developer has failed to comply with the order, reasonable time will be granted to adhere to the order. On the reasonable time period coming to an end, if the developer continues to err, s/he may be asked to submit an affidavit mentioning details of all movable as well as immovable assets, bank accounts and other investments.
To ensure that the compensation is duly recovered, a Recovery Warrant will be sent to the District Collector concerned to initiate seizing or attaching the assets and bank accounts.
If the developer fails to provide the details of immovable and movable properties, bank accounts and other investments, the case will be sent to the Principal Civil Court of that area for further action. As per the provisions of the Code of Civil Procedure, such defaulting developers may be imprisoned for up to 3 months.
