The Maharashtra Real Estate Regulatory Authority (MahaRERA) has announced a standard operating procedure (SOP) to ensure timely recovery of compensation for homebuyers, following directives from the Bombay High Court (HC).
The SOP mandates that developers who fail to pay compensation despite multiple opportunities will have their cases referred to the principal civil court of the area.
Such defaulting developers may face imprisonment for up to three months under the provisions of the Code of Civil Procedure.
The move is aimed at providing faster relief to homebuyers who approach MahaRERA with complaints ranging from delayed possession and sub-standard construction to missing amenities or parking spaces. MahaRERA’s designated adjudicating officers determine compensation orders based on the merits of each case.
Under the new SOP, homebuyers are expected to receive compensation within 60 days of the order. If the developer does not comply within this period, the homebuyer can file a non-compliance application with MahaRERA, which will be heard within four weeks.
Developers failing to adhere to the orders may be asked to submit an affidavit detailing their movable and immovable properties, bank accounts, and other investments. Subsequently, a recovery warrant can be issued to the district collector to attach or seize assets to recover dues.
“If the developer continues to default even after the reasonable time granted, the case will be referred to the Principal Civil Court, and the developer may face imprisonment for up to three months,” MahaRERA stated.
The authority said the SOP is intended to strictly implement court orders and strengthen homebuyers’ rights, ensuring compensation is recovered efficiently and in a time-bound manner.
