MAHARERA rolls out tougher compensation recovery norms

SOP lays out a clearer process to ensure developers comply with orders; set a 60-day timeline provision from the date of order

- Kamal Mishra

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has introduced a new standard operating procedure (SOP) to speed up and strengthen the recovery of compensation awarded to homebuyers.

Issued through an official circular following Bombay High Court directives, the SOP lays out a clearer and stricter process to ensure developers comply with compensation orders.

"For the first time, MahaRERA has laid down provisions under which developers who fail to pay compensation despite repeated opportunities may be referred to the Principal Civil Court of their respective jurisdiction. In such cases, erring builders could face imprisonment of up to three months. The authority believes this stern measure will strengthen enforcement and offer timely relief to aggrieved homebuyers," said an official.