MahaRERA Stricter SOP: Non-Compliant Builders Risk Imprisonment Over Compensation Defaults

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has released a detailed Standard Operating Procedure (SOP) aimed at strengthening the enforcement of compensation orders passed by its adjudicating officers.  

These orders typically arise from complaints filed by homebuyers regarding delayed possession, substandard construction quality, missing amenities, or inadequate parking. Although thousands of compensation directives have been issued over the years, recovery has often been delayed, prompting the Bombay High Court to demand time-bound compliance in an order dated October 6. 

Key Enforcement Changes Under MahaRERA’s New SOP 

As per Hindustan Times, a senior MahaRERA official described the new framework as a major shift from past practice. “For the first time, cases where developers fail to pay compensation despite sufficient opportunities will be referred to the Principal Civil Court of the area. Developers may face imprisonment of up to three months. This is expected to greatly improve compliance and offer timely relief to homebuyers.” 

Under current rules, developers are required to pay compensation within 60 days of a MahaRERA order. The new SOP introduces a clear procedure for instances where payments are not made. Homebuyers will be able to file an application for recovery of dues whether compensation, interest for delayed possession, or other amounts. MahaRERA will hear these applications within 30 days and set a reasonable deadline if the developer is found prima facie in default. 

If the builder still fails to comply, the authority may demand an affidavit listing all movable and immovable assets, bank accounts, and investments. Following this, a recovery warrant can be issued to the District Collector, empowering them to seize or attach assets. Continued non-compliance may result in the matter being escalated to the Principal Civil Court, which can invoke the Civil Procedure Code and order imprisonment for up to three months. 

Read More: MahaRERA Tightens Real Estate Project Scrutiny to Protect Homebuyers! 

Impact On Homebuyers and Developer Accountability 

MahaRERA believes that this sharper enforcement mechanism will address one of the sector’s biggest frustrations the disconnect between orders issued and compensation actually received. By introducing consequences such as asset attachment and potential jail time, the authority aims to restore homebuyer confidence and ensure that developers treat compliance with the seriousness it demands. 

Conclusion 

The new SOP marks a decisive step by MahaRERA toward ensuring accountability in the real estate sector. With clearer timelines, mandatory asset disclosures, recovery action, and the possibility of imprisonment, the regulator aims to create a stronger, more enforceable system that finally closes the long-standing gap between compensation orders and actual payments made to homebuyers. 

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