Why This Landmark MahaRERA Order Strengthens Homebuyers’ Rights Under RERA

Authored by Adv. Sulaiman Bhimani | The Law Suits – Best Law Firm in Mumbai

After a prolonged and arduous legal battle spanning more than eight years, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has once again sent a strong and unequivocal message: orders passed under the Real Estate (Regulation and Development) Act, 2016 are not merely declaratory in nature but are fully enforceable decrees in law

In a decisive order dated 22 January 2026, MahaRERA allowed a review-cum-rectification application and issued a fresh recovery warrant under Section 40(1) of the RERA Act, directing recovery of ₹2.05 crore plus interest of ₹1,63,86,266 (interest calculated till 31 January 2026) at MCLR + 2%, with further interest continuing until realisation.

The case stands out not merely for the quantum involved, but for the Authority’s firm stand against procedural abuse by developers who attempted to frustrate the execution of a final order passed as far back as April 2022.

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Background of the Dispute

The dispute arose from the booking of two residential flats in a MahaRERA-registered project in Borivali, Mumbai. Despite full payment of consideration, stamp duty, and registration charges, possession was never handed over, compelling the homebuyer to approach MahaRERA in 2018.

By its final order dated 18 April 2022, MahaRERA had:

• • Protected the allottee’s rights

• • Directed refund of the entire consideration

• • Awarded interest under Section 18 of RERA

• • Clarified limited applicability of COVID moratorium notifications

However, instead of complying, the builder and the associated trust engaged in prolonged delay tactics, forcing the allottee into repeated execution proceedings.

Execution, Review & Rectification: No Escape Through Technicalities

In December 2024, MahaRERA issued a recovery warrant, but due to a clerical error in recording flat numbers and consideration amounts, the complainant was compelled to file a review application.

In the present order, MahaRERA categorically held that:

• • Errors in recording consideration cannot dilute decretal rights

• • Execution proceedings cannot reopen issues decided on merits

• • Builders cannot exploit procedural lapses to avoid payment

The Authority corrected the record and confirmed that a total amount of ₹2,05,81,900, along with interest, is recoverable from the respondents.

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Appeal Withdrawn to Avoid Section 43(5) Deposit

Significantly, the respondents filed an appeal against the MahaRERA order but later withdrew it, as they were unwilling to comply with Section 43(5) of RERA, which mandates deposit of the entire decretal amount as a pre-condition to maintain an appeal.

This withdrawal exposed the respondents’ lack of bona fide intent and further justified the issuance of a coercive recovery warrant.

Fresh Recovery Warrant Issued

By its order dated 22 January 2026, MahaRERA has now:

• • Recalled the earlier execution order

• • Issued a fresh recovery warrant under Section 40(1) read with Rule 3

• • Directed recovery of:

₹2,05,81,900 (principal amount)

₹1,63,86,266 (interest calculated till 31 January 2026)

Further interest at MCLR + 2% from 1 February 2026 till recovery

The Authority clarified that moratorium periods were already factored in, and could not be used as a shield against liability.

Strategic Legal Representation That Made the Difference

The matter was handled by Sharon Fernandez and Sulaiman Bhimani, who represented the allottee through The Law Suits.

Their role was pivotal in:

• • Securing the original MahaRERA order

• • Successfully pursuing review and rectification

• • Ensuring effective execution and recovery

• • Preventing dilution of the homebuyer’s rights through procedural abuse

This case further strengthens The Law Suits’ reputation as the Best Law Firm in Mumbai for RERA and real-estate litigation, particularly in complex execution and enforcement matters.

Conclusion: A Strong Message to Errant Developers

This order sends a clear and unequivocal signal:

Developers cannot defeat homebuyers by delay, attrition, or abandoned appeals.

MahaRERA has reaffirmed that execution is not optional, and that Section 43(5) of RERA is a mandatory safeguard—not a formality.

For homebuyers facing delayed possession or refund disputes, this judgment reinforces confidence that RERA, when pursued decisively, delivers results.

Click Here to Read and Download The Order 

The Law Suits, 

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adv.Bhimani@gmail.com 

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