MahaRERA has released updated guidelines. These new rules mandate that developers reimburse homebuyers within a two-month window

By Bricksnwall | 2025-11-23

MahaRERA's announcement of the SOP aims to guarantee the rigorous enforcement of the Bombay High Court's directives, while also offering some respite to those who have purchased homes.

On November 22nd, the Maharashtra Real Estate Regulatory Authority (MahaRERA) revealed its new Standard Operating Procedure (SOP). This SOP is designed to streamline the process of getting compensation from developers, ensuring a quicker resolution for purchasers who have been wronged. The developer is liable for the compensation, which is being recouped because of several breaches.

This new Standard Operating Procedure is being put in place to guarantee the Bombay High Court's directives are followed precisely, while also offering some respite to those who have purchased homes. MahaRERA anticipates that homebuyers will get compensation within two months of the order's issuance, according to their statement.

From now on, if a developer doesn't pay the compensation owed, even after being given ample chances, the case will be forwarded to the Principal Civil Court in the relevant area for additional proceedings. If the builder is found guilty, they might be sentenced to up to three months in prison. This provision is expected to immensely help in recovering compensation and providing timely relief to the home buyers," the MahaRERA statement said.

When a developer and homebuyers can't come to an agreement, the buyers frequently turn to MahaRERA for help. They bring a variety of complaints, including not getting their apartment on time, poor construction, inadequate parking, and missing promised features. MahaRERA's appointed Adjudicating Officers listen to these grievances. Based on the specifics of each case, they then issue orders for compensation.

Homebuyers must file their complaints with MahaRERA within a two-month window.

According to the standard operating procedure, if a homebuyer hasn't received their compensation within two months, they'll need to submit an application for non-compliance. This application is for recovering the owed money, plus interest, or for delayed possession, or for compensation, depending on the specific situation, as outlined by MahaRERA.

Once a complaint is lodged, MahaRERA is obligated to address the non-compliance application within a four-week timeframe. Should the developer's non-compliance with the order be evident at first glance, a reasonable period will be allowed for them to rectify the situation. If the developer persists in their mistakes after a reasonable timeframe, they could be required to provide an affidavit. This document would need to list all their movable and immovable assets, along with bank accounts and other investments.

The collector will receive a recovery warrant.

To facilitate the recovery of the owed compensation, the MahaRERA will issue a Recovery Warrant. This warrant will be dispatched to the relevant District Collector, who will then be responsible for initiating the seizure or attachment of assets and bank accounts.

The developer has stated that if they don't disclose information on their real estate, personal property, bank accounts, and other investments, the matter will be escalated to the Principal Civil Court in that jurisdiction for resolution. Under the Code of Civil Procedure, developers who fail to comply with its requirements could face imprisonment for a period not exceeding three months.

Legal experts are weighing in on the new Standard Operating Procedure.

Legal experts view the new SOP as a step in the right direction, while they acknowledge its shortcomings.

"Though the MahaRERA circular is a welcome move, aiming to establish a more organized execution process as per court orders, it falls short with its unclear deadlines. This vagueness is likely to lengthen the time it takes to resolve execution applications, compared to how things were before this Circular was released," stated Advocate Sunil M. Kewalramani, who runs Sunil M Kewalramani and Associates.

The real-world effects of this Circular will only be fully understood when MahaRERA puts it into practice, and does so with genuine intent, Kewalramani noted.

The MahaRERA recovery warrant portal, as it stands, doesn't offer real-time information. It also lacks a method for tracking the status of warrants and providing essential details. Warrant data isn't connected digitally to pending appeals or cases where stay orders are in effect, either. "Allottees face the most significant challenge in executing orders. Stricter deadlines and fewer delays are absolutely necessary," stated Trupti Daphtary, a solicitor based in Mumbai.

Source: Hindustan Times