MahaRERA Introduces Strict SOPs for Homebuyers to Recover Compensation; Non-Compliant Developers May Face Jail

In a significant move aimed at strengthening the rights of homebuyers, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has introduced a comprehensive Standard Operating Procedure (SOP) to fast-track the recovery of compensation from developers who fail to honour regulatory orders. The new SOP outlines strict timelines, enforcement mechanisms, and even the possibility of imprisonment for builders who continue to ignore compensation directives.

The updated SOP comes after increasing complaints from homebuyers that despite MahaRERA adjudicating officers awarding compensation for delayed possession, incomplete amenities, or construction deficiencies, many developers either postponed or completely avoided payments. The new framework seeks to close this gap between orders issued and compensation actually received.

Under the revised procedure, once MahaRERA issues an order awarding compensation to a homebuyer, the developer is given a 60-day period to comply and make the required payment. If the developer fails to do so within this window, the homebuyer can file a non-compliance application with the authority. MahaRERA has committed to addressing such applications within four weeks, ensuring the enforcement process does not drag on unnecessarily.

One of the key highlights of the SOP is the requirement for developers to submit a detailed affidavit of assets in cases of non-compliance. This affidavit must list all movable and immovable assets, bank accounts, properties, and investments. The purpose of this requirement is to assist authorities in tracing funds and enabling effective recovery.

If a developer fails to disclose assets or continues to avoid payment, MahaRERA can issue a recovery warrant to the district collector. This authorises government machinery to seize assets, attach bank accounts, and auction property to recover the dues owed to the homebuyer. The SOP also empowers MahaRERA to escalate the matter to the Principal Civil Court, which can initiate further legal action, including issuing arrest warrants.

In extreme cases of defiance, developers may face imprisonment of up to three months. This clause is expected to act as a strong deterrent for builders who delay or deny compensation despite clear orders.

Legal experts have welcomed MahaRERA’s move, stating that the SOP finally provides “teeth” to regulatory orders, ensuring that builders cannot comfortably ignore consumer rights. Consumer-rights groups also praised the introduction of clear timelines, as delays in enforcement have historically forced many homebuyers into long legal battles or financial losses.

However, some have pointed out that the success of the new SOP will depend heavily on the efficiency of district collectors and court systems, which are often burdened with large caseloads. Effective implementation will be critical for ensuring timely recovery.

For homebuyers, the new SOP represents a major shift in the real-estate dispute-resolution landscape. With strict timelines, direct enforcement mechanisms, and the possibility of penal consequences for developers, MahaRERA has taken a decisive step to enhance accountability and restore buyer confidence in the real-estate market.