MahaRERA Refund Orders: Legal Roadmap for Enforcement

A MahaRERA order becomes final and enforceable 60 days after it is received by the party concerned. If the builder has not challenged the order, it has attained finality and is liable to execution.

Section 40(1) of the Real Estate (Regulation and Development) Act, 2016, provides that where a promoter fails to pay interest, penalty or compensation imposed by the Real Estate Regulatory Authority, Adjudicating Officer or Maharashtra Real Estate Appellate Tribunal, the amount is recoverable as arrears of land revenue.

Pursuant to a Bombay High Court order, MahaRERA issued a standard operating procedure through circular 51/2025 dated November 18, 2025, providing a roadmap for executing orders passed by the Authority, Adjudicating Officer or Appellate Authority.

To recover the amount, the complainant must file an online non-compliance or execution application after 60 days from the order. The application may seek recovery of the consideration paid with interest, interest for delayed possession, compensation.

The application must be listed within four weeks, and if prima facie non-compliance is established, MahaRERA will direct the builder to comply within a reasonable period. If compliance is not recorded on the adjourned date, MahaRERA may direct the builder to file an affidavit disclosing all movable and immovable assets, bank accounts and investments.

If the builder fails to file the affidavit, MahaRERA may order his attendance and examination for production of books or documents. If they are not produced, the Authority may decide the application on merits.

MahaRERA may impose a penalty proportionate to the severity of non-compliance, issue a Recovery Warrant or Revenue Recovery Certificate to the Collector for attachment and auction of assets, including bank accounts.

The collector's role is crucial in the enforcement process, as they order attachment of the property after receiving asset particulars and the Recovery Warrant from MahaRERA.

In the context of Mumbai's real estate market, the enforcement of MahaRERA refund orders is crucial for protecting homebuyers' rights. The legal roadmap provided by MahaRERA ensures that builders are held accountable for non-compliance with orders.

The significance of this process lies in its ability to provide relief to homebuyers who have been affected by delayed or stalled projects. By following the standard operating procedure, homebuyers can recover their investments and seek compensation for delayed possession.

In conclusion, the enforcement of MahaRERA refund orders is a critical step towards ensuring transparency and accountability in Mumbai's real estate market. Homebuyers can now seek redressal through a well-defined legal process, and builders will be held liable for non-compliance with orders.

The process of enforcing MahaRERA refund orders is a significant development in the real estate sector, and it is expected to have a positive impact on the market. With the legal roadmap in place, homebuyers can now approach the authorities with confidence, knowing that their rights will be protected.

Overall, the enforcement of MahaRERA refund orders is a major step forward in regulating the real estate sector in Mumbai. It is a testament to the authorities' commitment to protecting homebuyers' rights and promoting transparency in the market.