MahaRERA Recovery Warrants Crisis: Only 31% Executed Despite Government Directives

Maharashtra's real estate regulatory authority has revealed concerning statistics showing that despite state government directives, only a fraction of recovery warrant cases have been successfully resolved, leaving thousands of homebuyers in distress.

Sluggish Progress Despite Government Assurances

Senior MahaRERA officials disclosed that merely 31% of recovery warrant cases have been executed, falling far short of the state government's three-month disposal target. The data reveals that only Rs 233 crore has been recovered across 352 complaints, while a substantial Rs 760 crore remains outstanding across 1,212 cases throughout Maharashtra.

This disappointing progress comes despite Revenue Minister Chandrakant Bawankule's commitment during the state Budget session, where he had announced that recovery warrant orders issued by MahaRERA must be executed expeditiously with the backlog cleared within three months.

Understanding Recovery Warrants

Recovery warrants are issued under Section 40(1) of the Real Estate (Regulation and Development) Act (RERA) against developers who fail to complete projects or provide refunds to homebuyers. Once MahaRERA issues these orders, they are forwarded to district collectors for enforcement actions, including property attachment and dues recovery.

Regional Challenges and Coordination Issues

The districts of Mumbai Suburban, Pune, and Thane continue to report the highest backlog of pending cases. A senior MahaRERA officer acknowledged that while some improvement in execution rates has been observed, the scale of pendency remains significant and requires more proactive coordination from revenue officials.

This situation persists despite the appointment of additional collectors in multiple districts specifically to expedite recovery warrant execution. For homebuyers looking at residential projects in Pune, these delays represent ongoing uncertainty in the market.

NCLT Cases Adding to Delays

Further complicating the situation are 172 complaints involving Rs 157 crore currently pending before the National Company Law Tribunal (NCLT), which handles insolvency and bankruptcy cases. These cases remain in legal limbo, adding to the frustration of affected homebuyers, officials stated.

Prime Minister's Direct Intervention

Prime Minister Narendra Modi addressed the issue directly at the Pragati review meeting on May 29, expressing dissatisfaction with merely counting "disposed" complaints rather than ensuring genuine redressal. The PM directed all state chief secretaries to regularly review RERA enforcement and verify whether real estate projects and builders listed on websites are properly registered as required under the Act.

In response, Maharashtra chief secretary Sujata Saunik conducted a review meeting in the second week of June with collectorates across the state, directing officials to fast-track recovery warrant execution and ensure accountability in the process.

Statewide Verification Initiative for Developer Certificates

MahaRERA has initiated a comprehensive statewide verification of 2,600 Occupancy Certificates (OCs) submitted by developers on its official portal. These certificates have been sent to respective planning authorities to ensure authenticity and prevent discrepancies or forgery.

So far, only 136 OCs have been verified by the authorities. This move follows the fallout of the Dombivli scam involving illegal constructions, where developers used fake approvals for unauthorized projects.

Learning from the Kalyan-Dombivli Scam

The verification drive stems from the 2022 Kalyan-Dombivli Municipal Corporation scam, where 65 illegal buildings were constructed using forged documents, including fake 7/12 extracts (land records), fabricated building plans, and counterfeit MahaRERA registrations. The scam led to the arrest of 15 individuals, including developers and agents, and a Bombay High Court-ordered demolition drive that displaced over 6,500 residents.

A senior MahaRERA official explained that many developers have uploaded Occupancy Certificates on the MahaRERA portal, and the authority is now verifying them with respective planning authorities. The OC serves as the completion certificate for real estate projects, making its authenticity crucial for legal aspects of property purchase.

Integration Challenges with Planning Authorities

According to an earlier directive by the state's urban development department, verified commencement certificates (CCs), building plans, and OCs issued to developers must be sent by planning authorities to MahaRERA's designated email if their websites are not integrated. While many authorities have submitted CCs and building plans, officials noted that OCs are often not uploaded by developers.

Legislative Session Focus

MahaRERA officials indicated that the recovery warrant execution issue is likely to be raised in the upcoming legislative session. An official emphasized the importance of revenue officials providing concrete and time-bound plans for executing these orders.

For potential investors considering areas in Pune for home purchase or exploring luxury gated communities, these regulatory developments represent both challenges and eventual strengthening of buyer protection mechanisms.