MahaRERA Recovers Rs 200 Crore from Developers to Compensate Homebuyers

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has recovered over Rs 200 crore from developers to compensate homebuyers affected by delayed or incomplete projects. As of December 3, 2024, this recovery is part of MahaRERA’s efforts to ensure developers are held accountable for delays and financial losses faced by homebuyers under the Real Estate (Regulation and Development) Act, 2016 (RERA). The Act mandates developers to compensate buyers in cases of delays or incomplete projects.

Recovery Actions

MahaRERA has issued 1,163 recovery warrants across Maharashtra, targeting a total of Rs 705.62 crore in dues from developers. The authority has successfully recovered Rs 200.23 crore from 283 warrants, involving 139 projects. The majority of recoveries have come from two areas: Mumbai suburban and Pune. Mumbai suburban has seen Rs 76.33 crore recovered from 85 warrants across 42 projects, while Pune has contributed Rs 39.10 crore from 57 warrants across 36 projects. Mumbai city has also seen Rs 46.47 crore recovered from 22 warrants, covering 13 projects.

Despite these recoveries, large amounts remain unpaid. In Mumbai suburban, Rs 304.45 crore is still due, and Pune has Rs 189.82 crore in outstanding dues.

Challenges in Recovery

Although MahaRERA has made substantial progress, challenges remain, particularly in high-demand areas like Mumbai suburban and Pune, where the amounts due are large. Many developers have been slow to pay, leaving homebuyers still waiting for compensation.

To address this, MahaRERA has appointed retired Tahsildars (revenue officers) to assist with the recovery process in areas with high volumes of pending cases, including Mumbai suburban and Pune. These officers are stationed at district collectorates to speed up the recovery process. The initiative aims to use their expertise to improve the efficiency of the recovery system and ensure that developers fulfill their obligations.

This approach is being tried as a pilot project, and if successful, it may be extended to other districts in Maharashtra where there is a backlog of cases.

Legal Framework for Recovery

The recoveries are carried out under the provisions of the Real Estate (Regulation and Development) Act, 2016. Section 40(1) of the Act gives District Collectors the authority to recover dues as arrears of land revenue. If developers do not pay the required amount within the prescribed time, the District Collector’s office takes over the process of recovery.

This system ensures that homebuyers do not need to bear the burden of chasing developers for compensation. It also provides a formal mechanism for enforcing compliance with MahaRERA’s orders, ensuring that the money owed to homebuyers is recovered and delivered.

Regional Breakdown of Dues

The recovery efforts have shown mixed results across different districts in Maharashtra:

• Thane: Rs 62.58 crore is due from 191 warrants involving 81 projects. However, only Rs 11.65 crore has been recovered so far.
• Palghar: In Palghar, Rs 19.86 crore is due from 79 warrants across 32 projects, with only Rs 4.49 crore recovered.
• Chandrapur: Rs 9 lakh has been recovered from a single warrant in Chandrapur, a relatively small amount compared to other areas.
• Other districts: Other regions, including Sindhudurg, Satara, Ratnagiri, and Solapur, have smaller dues and lower recoveries. However, the focus in these areas has been less intense compared to regions with larger amounts pending.

While these districts have seen slower recovery, the focus remains on areas like Mumbai suburban and Pune, where the outstanding dues are higher. This approach ensures that efforts are targeted at where the financial impact is greater, and homebuyers are most affected.

Future Plans for Recovery

MahaRERA is committed to continuing its recovery efforts and addressing the challenges it faces. The appointment of retired revenue officers is one step in a broader strategy to reduce delays and increase the efficiency of the recovery process. By assigning these officers to regions with large amounts of dues, MahaRERA aims to clear the backlog of cases and provide quicker relief to affected homebuyers.

Image source- maharera