Mumbai: In a significant step toward strengthening consumer protection in the real estate sector, the Maharashtra Real Estate Regulatory Authority has issued a Standard Operating Procedure aimed at speeding up compensation recovery for aggrieved homebuyers. The announcement was made on November 22 and is positioned as a time-bound enforcement mechanism designed to ensure strict adherence to compensation orders.
As reported by Hindustan Times, the new protocol is expected to streamline long pending cases where developers have failed to honour compensation orders issued against them for delays, construction lapses or missing amenities. MahaRERA stated that the intention is to ensure homebuyers receive compensation within 60 days from the date of the order.
New Enforcement Powers, Including Court Referral And Jail Term
Under the revised framework, if a developer fails to pay compensation despite multiple reminders, MahaRERA will refer the case to the Principal Civil Court for execution. This marks the first time such power has been formalised in a time-specific process. The authority noted that non compliant builders may face imprisonment of up to three months, depending on the court’s direction.
“This provision is expected to immensely help in recovering compensation and providing timely relief to the home buyers,” the statement said.
Homebuyers often approach MahaRERA after exhausting all other remedies. Complaints typically relate to delayed possession, poor construction quality, lack of promised facilities or unresolved grievances around parking or amenities. Compensation decisions are issued by designated adjudicating officers based on evidence submitted.
As per the new SOP, if a buyer does not receive compensation within 60 days, they must file a non compliance application. MahaRERA will then schedule a hearing within four weeks.
If the developer is found in violation, they will be given a limited extension to comply. Continued non compliance may trigger a requirement for the builder to submit an affidavit including details of assets, bank accounts and investments.
If the developer withholds such information or still refuses to comply, the authority will issue a recovery warrant to the District Collector to seize or attach assets. Failure to cooperate may escalate the matter to the Principal Civil Court, where imprisonment provisions may apply.
Legal Community Welcomes Move, Calls For Better Implementation
Legal experts have described the move as encouraging while cautioning that its success will depend on robust execution. Advocate Sunil M Kewalramani observed that although the framework creates structure, unclear timelines may inadvertently delay outcomes.
“The actual impact will only become clear once MahaRERA implements it effectively and in its true spirit,” he said.
Mumbai based solicitor Trupti Daphtary said execution remains the biggest challenge for homebuyers. She pointed out gaps including the lack of a real time recovery system and limited visibility into warrant status and linked appeals. She said minimal adjournments and clearer timelines will be key for effective enforcement.
