The Maharashtra Real Estate Regulatory Authority (MahaRERA) has issued a new standard operating procedure (SOP) to streamline how compensation is recovered from developers who fail to comply with orders. The SOP follows directions from the Bombay High Court and introduces mandatory asset disclosure, time-bound enforcement, district-level recovery action, and the possibility of civil imprisonment for willful non-payment.
For the first time, MahaRERA has laid out a uniform process that every district must follow.
What has changed under the new SOP?
MahaRERA has formalised a structured, step-by-step recovery mechanism for compensation awarded to homebuyers in cases such as:
- Delayed possession
- Construction defects
- Missing amenities
- Violation of agreement terms
Earlier, enforcement varied widely by district, often leaving buyers unsure of next steps. The new SOP makes the entire pathway predictable and time-bound.
How the new recovery process will work
Below is the sequential enforcement flow introduced by MahaRERA:
1. Compensation Order Issued
Developer receives directions to compensate the buyer.
2. 60-Day Compliance Window
Developers must comply within 60 days of the order.
3. Non-Compliance Application by Buyer
If the developer fails to pay, the buyer can file a non-compliance application.
4. MahaRERA Hearing (within 4 weeks)
MahaRERA will schedule a hearing within four weeks of receiving the application.
5. Mandatory Asset Disclosure
If default continues, the developer must file an affidavit disclosing:
- Movable and immovable properties
- Bank accounts
- Investments and financial assets
6. Recovery Warrant Issued to District Collector
If dues remain unpaid, MahaRERA will issue a recovery warrant directing the district collector to attach:
- Properties
- Bank balances
- Other attachable assets
This step was previously used inconsistently; it is now mandatory.
7. Escalation to Civil Court
If recovery still fails, MahaRERA will move the matter to the principal civil court.
8. Civil Imprisonment for Wilful Default
The court can impose up to three months of civil imprisonment for:
- Wilful non-payment
- Suppression of assets
- Failure to comply despite adequate financial capacity
What this means for homebuyers
The SOP is designed to offer predictability and enforceability, areas where buyers previously struggled.
Key benefits include:
- Clear timelines for each enforcement stage
- Reduced administrative follow-up burden
- Mandatory disclosure of developer assets
- Higher likelihood of actual recovery through property or account attachment
- A strong deterrent against delay tactics
For many buyers, the lack of clarity after winning a favourable order was a major hurdle. The SOP directly addresses this gap.
What changes for real estate developers
Developers now face stricter compliance expectations:
- A strict 60-day deadline to pay compensation
- Mandatory submission of asset affidavits if they default
- Recovery action initiated automatically
- Civil imprisonment risk for wilful non-payment
The SOP is expected to significantly improve discipline in the sector, as delays in paying compensation will now trigger measurable enforcement steps.
However, smaller developers may experience cash-flow stress if multiple orders converge within tight timelines.
Broader implications for the sector
- Improved accountability: A clear enforcement route increases compliance pressure on developers.
- Greater buyer confidence: Homebuyers are more likely to receive compensation within a predictable timeframe.
- Operational dependency: The effectiveness of the SOP will still rely on district collectors and civil courts, which may face capacity challenges.
- Regulatory signalling: The move indicates a broader shift toward stricter enforcement under state RERA bodies nationwide.