MahaRERA Introduces Jail Term for Developers Who Ignore Recovery Orders; Maharashtra Becomes First State to Enforce Such Action

Mumbai, 21st November 2025: In a landmark move aimed at strengthening consumer protection in the real estate sector, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has announced that developers who fail to comply with its recovery orders can now face imprisonment. The provision was formalised through a circular issued on November 18, making Maharashtra the first state in India to adopt such an aggressive enforcement mechanism.

Why the Directive Was Needed
MahaRERA routinely receives complaints from homebuyers alleging fraud, project delays, and violations of RERA norms. When these complaints are upheld during hearings, the authority typically directs developers to refund the amounts paid by homebuyers along with interest.

However, a significant number of developers have been accused of ignoring these orders, leaving aggrieved homebuyers waiting indefinitely for their dues.

To ensure compliance, MahaRERA issues recovery warrants, executed through district collectors, empowering them to seize and auction developer properties and remit the recovered amount to the complainant. Despite this mechanism, non-compliance has remained a persistent challenge.

New Enforcement Powers: Seizure, Account Freeze, and Jail

The new circular dramatically expands MahaRERA’s enforcement capabilities. Developers who continue to defy recovery orders may now face:

Seizure of movable and immovable property

Freezing of bank accounts

Imprisonment for up to three months

The authority clarified that since it does not have its own detention facilities, imprisonment will be implemented through the civil court system.

Revised Procedure for Handling Non-Compliance

The circular outlines a structured process for homebuyers seeking enforcement:

60-Day Window: Developers must refund the ordered amount with interest within 60 days.

Filing Non-Compliance Application: If the payment is not made, complainants must file a non-compliance application on the MahaRERA portal.

Hearing Within Four Weeks: MahaRERA will schedule a hearing, giving the developer a final opportunity to comply.

Mandatory Affidavit: Continued non-compliance will require the developer to submit a sworn affidavit listing all assets, bank accounts, and investments.

Summons for Failure: If the affidavit is not filed, MahaRERA will issue a summons and initiate further action.