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The Maharashtra government has informed the state assembly that it will intensify efforts to recover pending dues ordered by the Maharashtra Real Estate Regulatory Authority (MahaRERA), as the recovery rate remains at around 34 per cent. Urban Development Minister Shambhuraj Desai said district collectors have been directed to speed up action against defaulting developers. Properties of errant builders will be identified and attached through Revenue Recovery Certificates. The government will monitor weak-performing districts closely. A significant portion of the total INR 792 crore ordered for recovery is still pending, affecting homebuyers awaiting compensation.
The Maharashtra government has decided to step up recovery proceedings in cases where developers have failed to comply with compensation and refund orders passed by the Maharashtra Real Estate Regulatory Authority (MahaRERA). Advertisement
Responding to a question in the state legislative assembly, Urban Development Minister Shambhuraj Desai informed members that only about 34 per cent of the total dues ordered by MahaRERA have been recovered so far. He indicated that the government intends to significantly improve this percentage through stricter enforcement measures.
As per the data shared in the House, MahaRERA has issued recovery warrants amounting to nearly INR 792 crore against defaulting developers. Out of this, around INR 279 crore has been recovered. About INR 103 crore is linked to proceedings before the National Company Law Tribunal (NCLT), while the remaining amount is still pending recovery.
The minister stated that district collectors across the state have been instructed to accelerate action under the Revenue Recovery Certificate (RRC) mechanism. Under this process, unpaid amounts are treated as arrears of land revenue, enabling authorities to attach and auction properties of defaulting builders.
To trace assets, officials will use land revenue records, property registration data, stamp duty records and other government databases. Assistance from departments such as registration and revenue will be taken wherever required to identify attachable properties. Once identified, these assets will be attached in accordance with legal provisions.
He further conveyed that regular review meetings are being conducted with divisional commissioners and district collectors to monitor progress. Districts where recovery performance has been weak, including Mumbai, Palghar and Kolhapur, have been flagged for closer supervision.
The minister also informed the House that Deputy Chief Minister Eknath Shinde has been reviewing the recovery process and has directed officials to ensure that orders passed in favour of homebuyers are implemented without undue delay.
MahaRERA was established in 2017 under the Real Estate (Regulation and Development) Act to regulate the real estate sector and protect homebuyers. While the authority has passed a large number of refund and compensation orders over the years, recovery of awarded amounts has remained a challenge, especially in cases where developers have limited assets or are undergoing insolvency proceedings.
The renewed focus on recovery comes amid continued complaints from homebuyers that favourable orders are not translating into actual refunds. The government's latest direction aims to ensure that regulatory orders lead to tangible financial relief.
Source PTI
FAQ
1. What decision has the Maharashtra government taken regarding MahaRERA recoveries?
The Government of Maharashtra has decided to intensify efforts to recover pending dues ordered by the Maharashtra Real Estate Regulatory Authority. With the recovery rate currently at only around 34 per cent, the government has directed district collectors to speed up enforcement action against defaulting developers to ensure homebuyers receive compensation awarded to them.
2. How much money is involved and how much has been recovered so far?
MahaRERA has issued recovery warrants totalling nearly INR 792 crore against errant developers. Out of this, approximately INR 279 crore has been recovered. Around INR 103 crore is linked to proceedings before the National Company Law Tribunal, while the remaining amount is still pending, significantly affecting homebuyers awaiting refunds or compensation.
3. What enforcement mechanism will be used to recover dues?
Authorities will rely on the Revenue Recovery Certificate (RRC) mechanism. Under this process, unpaid amounts are treated as arrears of land revenue, allowing district administrations to attach and auction properties belonging to defaulting developers to recover the outstanding dues.
4. How will the government identify properties for attachment?
Officials will use land revenue records, property registration databases, and stamp duty records to trace assets owned by developers. Coordination between revenue, registration, and other government departments will help identify attachable properties that can be legally seized to enforce MahaRERA's orders.
5. Which areas are under closer monitoring?
Districts where recovery performance has been relatively weak including Mumbai, Palghar, and Kolhapur have been flagged for stricter supervision. Regular review meetings are being held with divisional commissioners and district collectors to track progress and remove bottlenecks in the recovery process.
6. Why is this recovery drive significant for homebuyers?
While MahaRERA, established in 2017 under the Real Estate (Regulation and Development) Act, has passed numerous refund and compensation orders, enforcement has remained a challenge. The renewed push aims to ensure that favourable rulings translate into actual financial relief for homebuyers, restoring confidence in regulatory mechanisms and improving accountability within the real estate sector.
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