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What happened
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has introduced a new standard operating procedure (SOP) for compensation recovery, aimed at improving accountability among developers and ensuring timely compensation for homebuyers. This SOP, issued following Bombay High Court directions, requires developers to disclose their assets and establishes a structured, time-bound enforcement pathway. Homebuyers can now expect a clearer process for recovering compensation in cases of delayed possession or construction defects. Developers have a 60-day compliance window, after which non-compliance can lead to legal actions, including civil court involvement and potential imprisonment. This marks a significant shift in how MahaRERA handles developer defaults, aiming to enhance buyer confidence and streamline recovery processes.
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Key insights
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1
Mandatory Asset Disclosure
Developers must disclose all assets to ensure transparency.
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Time-Bound Enforcement
The SOP establishes clear timelines for compliance and recovery.
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3
Legal Consequences for Non-Compliance
Failure to comply can lead to civil court actions and imprisonment.
Takeaways
MahaRERA's new SOP is a significant step towards enhancing accountability in the real estate sector, providing homebuyers with a clearer path to compensation and potentially deterring developer defaults.
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