15 October,2026 11:21 PM IST | Mumbai | Vinod Kumar Menon
The state has introduced a new procedure to speed up the recovery of compensation ordered by MahaRERA. Representational Pic
For homebuyers who have spent years chasing developers for delayed flats, a favourable ruling should bring an end to the struggle. But winning the case is only half the battle; receiving the compensation is another.
Since its establishment in May 2017, MahaRERA has recovered Rs 369.45 crore against compensation orders worth Rs 1,037.86 crore, leaving a substantial amount still unpaid. Collections have accelerated, with around Rs 260 crore recovered between May 2017 and December 2025, followed by another Rs 110 crore in 2026.
While the uptick offers hope to homebuyers awaiting compensation, the key question remains: how quickly will these orders translate into money in their bank accounts?
The state has introduced a new procedure to speed up the recovery of compensation ordered by MahaRERA. Resident deputy collectors and additional district collectors in every district have been designated as revenue recovery officers for MahaRERA cases, a MahaRERA official explained.
The move addresses a gap in the process: MahaRERA adjudicates complaints and orders developers to pay compensation, but the actual recovery is handled by revenue authorities.
Under Section 40(1) of the RERA Act, 2016, if a developer fails to comply with an order within the stipulated period, MahaRERA issues a recovery warrant and sends it to the district collectorate. Revenue officials then initiate recovery proceedings under the Maharashtra Land Revenue Code, 1966.
The government hopes that dedicated officers will improve coordination and reduce delays in executing recovery warrants.
Mumbai Suburban leads the state in compensation recovery, having collected Rs 142.31 crore against orders worth Rs 415.93 crore.
Mumbai City follows, with Rs 85.80 crore recovered against Rs 231.81 crore, while Pune has recovered Rs 68.63 crore against Rs 230.45 crore.
Thane City has recovered Rs 36.79 crore against Rs 87.45 crore, while Alibaug has collected Rs 12 crore against Rs 27.54 crore.
These five jurisdictions account for most of the recovery. However, the gap between the amounts ordered and those collected shows that substantial dues remain outstanding in major urban markets, where homebuyers have fought prolonged disputes with developers.
Together, the five jurisdictions account for Rs 345.53 crore of the Rs 369.45 crore recovered statewide. The remaining Rs 23.92 crore has been recovered across other districts.
Across the five jurisdictions, compensation orders total Rs 993.18 crore. Of this, Rs 345.53 crore has been recovered, leaving Rs 647.65 crore outstanding. This represents a recovery rate of approximately 35 per cent.
The figures do not specify the nature of the compensation or the developers against whom the orders were issued.
Mumbai Suburban: The highest compensation amount was ordered here, at Rs 415.93 crore. Of this, Rs 142.31 crore has been recovered, leaving Rs 273.62 crore outstanding. The recovery rate is approximately 34 per cent.
Mumbai City: Of the Rs 231.81 crore ordered, Rs 85.80 crore has been recovered, leaving Rs 146.01 crore outstanding. The recovery rate is approximately 37 per cent.
Pune: Against orders worth Rs 230.45 crore, Rs 68.63 crore has been recovered, leaving Rs 161.82 crore outstanding. Pune has the lowest recovery rate among the five jurisdictions, at approximately 30 per cent.
Thane City: Of the Rs 87.45 crore ordered, Rs 36.79 crore has been recovered, leaving Rs 50.66 crore outstanding. The recovery rate is approximately 42 per cent.
Alibaug: Against orders worth Rs 27.54 crore, Rs 12 crore has been recovered, leaving Rs 15.54 crore outstanding. Alibaug has the highest recovery rate among the five jurisdictions, at approximately 44 per cent.
MahaRERA has also reported that seven districts, Nagpur, Palghar, Nashik, Chhatrapati Sambhajinagar, Sindhudurg, Solapur and Chandrapur, have brought their outstanding compensation amounts down to zero.
Together, these districts accounted for Rs 23.92 crore in recoveries, representing the difference between statewide collections and those from the five major jurisdictions.
Their zero-outstanding status means the pending compensation in these districts has been cleared. However, it does not indicate how long homebuyers waited to receive their money, a MahaRERA official explained.
Legal hurdles are impeding the recovery of a substantial portion of the compensation. An amount of Rs 104.70 crore is tied up in proceedings before the National Company Law Tribunal (NCLT), while another Rs 104.46 crore falls under the Maharashtra Protection of Interest of Depositors (MPID) Act, 1999.
Together, these legal restrictions affect Rs 209.16 crore in compensation, which cannot currently proceed through the regular recovery process.
MahaRERA has recovered Rs 369.45 crore against recovery orders covering compensation worth Rs 1,037.86 crore. This leaves Rs 668.41 crore yet to be recovered.
MahaRERA says its recovery rate of approximately 45 per cent is the highest among India's RERA authorities. This figure measures the amount collected against the value of recovery orders, not the proportion of homebuyers who have received their compensation.
The recovery drive is gaining pace, with Rs 110 crore collected in 2026 so far. Dedicated recovery officers are expected to help sustain this momentum.
However, for buyers who have spent years paying EMIs, rent and legal fees, the real test is how much of the awarded compensation has reached them, and how soon. That gap remains wide.
"RERA law is not a standalone law; it does not operate in isolation. The real estate sector requires the involvement of lenders and the mortgaging of property, as liquidity and capital play a key role. Hence, apart from flat purchasers, other factors and stakeholders may determine the actual outcome of recovery proceedings," said Advocate Mithil Sampat.
"While the report may paint an optimistic picture, the on-ground realities we see in metropolitan regions like Mumbai and Pune remain grim. A predominant cause for less-than-ideal recoveries remains the lack of transparency and accountability in the execution of RERA orders. The onus of execution by law remains with the government executive, typically the office of the district collector. While, as of recently, there are nodal officers who are seemingly assigned exclusively with the tasks of execution of RERA orders, an improved statutory ecosystem with more aggressive recovery processes and better transparency of execution statuses is the need of the hour. Public faith in the system will be restored if the law can bridge these systemic flaws," said Advocate Akash Menon.
