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MahaRERA has introduced a new SOP to speed up compensation recovery for homebuyers, following directions from the Bombay High Court. Developers must pay compensation within sixty days, failing which homebuyers may file a non-compliance application. Persistent defaulters will be required to disclose their assets, and recovery warrants may be issued for attachment of properties. Cases of continued refusal may be sent to the Principal Civil Court, where developers could face up to three months' imprisonment.
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has announced a new Standard Operating Procedure (SOP) designed to expedite the recovery of compensation owed to homebuyers. The updated procedure, issued in accordance with directions from the Bombay High Court, aims to ensure that developers comply with financial orders within a strict timeframe and face stronger consequences in cases of continued default. Advertisement
According to the circular issued by the authority, compensation awarded by adjudicating officers is frequently delayed, despite homebuyers approaching MahaRERA with grievances ranging from delayed possession and poor construction quality to missing amenities. The new SOP seeks to address these lapses by tightening enforcement and reducing the time taken to obtain relief.
Under the revised framework, developers are expected to pay compensation within sixty days from the date of the order. If the amount remains unpaid, homebuyers may file a non-compliance application, which MahaRERA will hear within four weeks of receipt. Should it be established that the developer has not complied with the order, the authority will grant a reasonable extension for compliance. If the developer still fails to act, they will be required to submit an affidavit detailing all movable and immovable assets, bank accounts and investments.
To facilitate recovery, MahaRERA may issue a recovery warrant to the District Collector for the attachment or seizure of assets and bank accounts belonging to the defaulting developer. If the developer refuses to disclose the necessary information, the case will be transferred to the Principal Civil Court in the respective area. The court may impose imprisonment of up to three months under the provisions of the Civil Procedure Code.
The authority has expressed hope that the new procedure will significantly improve the process of compensation recovery and offer timely relief to homebuyers, who often have no alternative when disputes with developers remain unresolved.
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