Consumer Connect: Legal Roadmap For Enforcing MahaRERA Refund Orders

Q. I booked a 1-BHK flat in Goregaon and paid the builder Rs55 lakh. As the project was delayed by more than two years beyond the promised possession date, I cancelled the booking and sought a refund with interest. I filed a complaint before MahaRERA and obtained an order directing the builder to refund with interest. Despite followups for over six months, the builder has neither complied with the order nor filed an appeal. What should I do, and how can I recover the amount? —Mangala Toraskar, Goregaon (West) A.

A MahaRERA order becomes final and enforceable 60 days after it is received by the party concerned, (the builder in your case). Since the builder has not challenged the order after six months, it has attained finality and is liable to execution. Section 40(1) of the Real Estate (Regulation and Development) Act, 2016, provides that where a promoter fails to pay interest, penalty or compensation imposed by the Real Estate Regulatory Authority, Adjudicating Officer or Maharashtra Real Estate Appellate Tribunal, the amount is recoverable as arrears of land revenue. Pursuant to a Bombay High Court order, MahaRERA issued a standard operating procedure through circular 51/2025 dated November 18, 2025, providing a roadmap for executing orders passed by the Authority, Adjudicating Officer or Appellate Authority.

Filing an execution application

After 60 days from the order, if compliance remains pending, the complainant, as judgment holder, must file an online non-compliance or execution application. It may seek recovery of the consideration paid with interest, interest for delayed possession, compensation.

Listing and initial hearing

The application must be listed within four weeks. If prima facie non-compliance is established, MahaRERA will direct the builder, as judgment debtor, to comply within a reasonable period.

Disclosure of assets If compliance is not recorded on the adjourned date, MahaRERA may direct the builder to file an affidavit disclosing all movable and immovable assets, bank accounts and investments.

Examination of respondent

If the builder fails to file the affidavit, MahaRERA may order his attendance and examination for production of books or documents. If they are not produced, the Authority may decide the application on merits.

Enforcement measures

MahaRERA may impose a penalty proportionate to the severity of non-compliance. It may issue a Recovery Warrant or Revenue Recovery Certificate to the Collector for attachment and auction of assets, including bank accounts. MahaRERA may also transmit the matter to the principal civil court of original jurisdiction under Section 40(2) of RERA, read with Rule 4 of the 2017 Rules, for enforcement under Order XXI of the Code of Civil Procedure. This is necessary because MahaRERA does not maintain civil prison premises for detention of judgment debtors.

Collector’s role

After receiving asset particulars and the Recovery Warrant from MahaRERA, the collector orders attachment of the property. If the defaulting builder fails or refuses to comply, the attached property may be declared for public auction to recover the amount payable to the complainant. The SOP creates an enforcement mechanism for complainants and prevents promoters from avoiding liability by ignoring MahaRERA orders. For homebuyers, it converts regulatory directions into enforceable recovery proceedings, ensuring that refunds, interest, compensation and penalties are realised. For promoters, it signals accountability once an order attains finality.

(Advocate Shirish V Deshpande is chairman, Mumbai Grahak Panchayat. Queries can be sent to him on email: shirish50@yahoo.com)

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Published on: Monday, July 27, 2026, 11:38 AM IST