PUNE: The Maharashtra Real Estate Regulatory Authority (MahaRERA) has introduced a detailed standard operating procedure (SOP) to streamline the process of obtaining compensation from developers who disregard its orders.
Released on Thursday, in response to directives from the Bombay High Court, the SOP outlines strict timelines and escalation measures, which may include property attachment and civil imprisonment, as noted by MahaRERA officials.
According to senior MahaRERA officials speaking to TOI, the new SOP is designed to “ensure strict compliance with the high court’s ruling and offer timely relief to homebuyers.” Developers are now required to compensate affected homebuyers within 60 days of an order from MahaRERA’s adjudicating officers.
If a developer fails to make the payment within this timeframe, the homebuyer must submit a non-compliance application. MahaRERA will then address the issue within four weeks, and if non-compliance is found, the developer will receive a final “reasonable” deadline to comply.
If developers still do not comply, they must submit an affidavit detailing their movable and immovable assets, bank accounts, investments, and other financial holdings, facilitating swift enforcement actions.
Afterward, MahaRERA will issue a recovery warrant to the respective district collector, allowing for the attachment or seizure of the developer’s assets and accounts. Officials mentioned that this step aims to prevent recovery delays caused by non-disclosure or lack of cooperation from builders.
For the first time, cases of persistent refusal to compensate will be escalated to the Principal Civil Court of the relevant jurisdiction. The court can impose a maximum of three months’ imprisonment on defaulting developers who intentionally avoid payment, according to MahaRERA officials.
“The SOP is designed to enhance timely recovery and prevent indefinite delays in compensation. We anticipate it will significantly assist in providing homebuyers with prompt relief,” affirmed a senior MahaRERA official.
Housing advocates and legal experts have praised this initiative. Ramesh Prabhu, chairman of the Maharashtra Society Welfare Association, stated, “We have been advocating for expedited enforcement of RERA orders. Establishing clear timelines for every phase will benefit all stakeholders and minimize delays.”
Another expert added that the SOP marks a positive advancement towards a clearer, more accountable enforcement framework. “We need to observe the implementation, but the structure looks promising,” they noted.
Homebuyers, however, are cautiously optimistic. One litigant pursuing compensation through MahaRERA remarked, “While the circular is promising, execution remains the real challenge. We hope this provides the relief we’ve been seeking.”
A senior citizen from Mumbai, who has awaited the execution of a recovery warrant for over two years, highlighted flaws in the existing system. “The recovery warrant portal lacks real-time updates and a way to monitor execution status. Many individuals have been waiting for years. We expect the new SOP to bring much-needed accountability,” he expressed. A housing expert pointed out that the new mechanism, supported by court directives, will enhance enforcement, ensuring that developers who repeatedly ignore orders face tangible consequences. “This is the first instance where developers may face imprisonment for willful non-compliance,” an official emphasized.
