PUNE: Homebuyers seeking compensation from defaulting developers find themselves in a state of uncertainty, as execution of recovery warrants remains stalled despite the Maharashtra Real Estate Regulatory Authority (MahaRERA) implementing a new standard operating procedure (SOP) two months ago aimed at expediting the process.
Among those affected are 80-year-old Arun Seth and his wife, who invested over Rs 50 lakh in a housing project back in 2014. Even though recovery warrants were issued in their favor years ago, local revenue authorities have yet to act. “Orders are issued, but nothing gets executed. It’s unclear if the developer still has any assets to auction,” Seth shared with TOI.
MahaRERA recovery warrants are intended to be enforced by district revenue authorities via the attachment and auction of developers’ assets or direct recovery from their bank accounts. However, homebuyers have expressed frustration over excessive backlogs and other administrative priorities causing significant delays, leaving many, especially senior citizens, without resolution.
The issue gained traction following recent Supreme Court concerns regarding the efficacy of real estate regulators in protecting homebuyers and enforcing orders. MahaRERA officials clarified that the execution of recovery warrants falls under the jurisdiction of district administrations.
Last November, in response to directives from the Bombay High Court, MahaRERA released a detailed SOP that set a 60-day deadline for developers to pay compensation as mandated by adjudicating officers. If a builder fails to comply, the affected homeowner must submit a non-compliance application. MahaRERA is then obliged to hear the case within four weeks, and if non-compliance is confirmed, a final “reasonable” deadline will be granted to the developer.
Activists have welcomed the intention behind the SOP but stressed that implementation remains a significant hurdle. “We’ve long advocated for a swift enforcement of RERA directives. Timelines are beneficial, but unless revenue authorities act decisively, delays will persist,” stated Ramesh Prabhu, chairperson of the Maharashtra Society Welfare Association.
For the first time, cases of persistent non-compliance may be escalated to the principal civil court. Under the Civil Procedure Code, courts have the authority to impose civil imprisonment for up to three months on developers who willfully elude payment.
A Pune-based senior citizen, who has been awaiting execution of a recovery warrant for over two years, highlighted systemic shortcomings, noting the lack of a real-time tracking system for recovery cases. “Homebuyers have no clarity on the status of their cases,” he remarked.
A MahaRERA official reiterated that while the authority can issue recovery orders, the actual power for enforcement lies solely with the district collector’s office.
