MahaRERA Tightens Conciliation Timelines: Builders and Homebuyers Now Get Just 30 Days After First Hearing
MahaRERA has issued Circular No. 38A/2026 (dated 5 November 2026) that sharply shortens the time available for resolving complaints referred to its Conciliation Forum. Once a complaint is assigned, the process must move much faster. After the first hearing, builders and homebuyers have only 30 days to either settle the dispute or see the matter closed and sent back to the Authority for regular adjudication.
The circular replaces the timelines set under the earlier Circular No. 38/2021 and comes into force immediately.
What is the MahaRERA Conciliation Forum?
The Conciliation and Dispute Resolution Forum is an alternative dispute resolution mechanism set up by MahaRERA under Section 32(g) of the Real Estate (Regulation and Development) Act, 2016. It was created to help promoters (builders/developers) and allottees (homebuyers) resolve disputes amicably, without going through the full formal complaint process before the Authority.
The Forum typically works through benches that include representatives from consumer associations (such as Mumbai Grahak Panchayat) and promoter associations. It is meant to be cheaper, less formal, and quicker than regular MahaRERA hearings. Both sides must generally agree to participate. If they reach a settlement, the terms are recorded and can be made into a binding order. If conciliation fails, the complaint is referred back to MahaRERA for regular adjudication on merits.
Over the years, MahaRERA has issued several circulars (including Circulars 15/2018, 31/2021 and 38/2021) to streamline how the Forum functions and to set deadlines so that conciliation does not become a source of delay.
What the New Circular Actually Says
Circular 38A/2026 revises the timelines for complaints that are referred to the Conciliation Bench. The key points are:
- Once a complaint is assigned, the Conciliation Bench must issue notice and fix the first hearing within 15 days.
- After the first hearing is conducted, the entire conciliation process should be completed within a further period of 30 days.
- If the matter is not progressing towards settlement, or if finalized settlement terms are not submitted on record, the complaint must be closed and referred back to MahaRERA within those 30 days — marked either as conciliation “settled” or “failed”.
The circular explicitly states that the timelines under the 2021 circular are substituted by these new ones. It has been approved by the Hon’ble Chairperson (in-charge) and Member-I of MahaRERA and is signed by the Secretary.
Old Rules vs New Rules: What Has Changed
Under Circular No. 38/2021 (8 November 2021):
- After the first hearing, the process was supposed to be completed within 60 days.
- If the matter was not moving towards settlement, it had to be closed and sent back within those 60 days.
- There was a flexibility: if the Bench felt the parties were progressing towards settlement but could not finalize terms in 60 days, the period could be extended by up to another 30 days (after informing the Secretary). This effectively allowed a total of about 90 days from the first hearing in some cases.
The new circular cuts the post-first-hearing window from 60 days (with possible extension) to a strict 30 days, with no extension provision mentioned. It also clearly restates the 15-day outer limit for issuing notice and fixing the first hearing after assignment.
In practical terms, the overall window for conciliation has become significantly tighter.
What This Means for Homebuyers and Builders
For homebuyers, the change is a double-edged sword. On the positive side, conciliation can no longer drag on for months. Builders who were previously using the longer window to delay or avoid meaningful settlement now face a much shorter clock. Complaints that are not settling quickly will be sent back faster for regular MahaRERA hearings, where the Authority can pass binding orders on possession, refunds, interest, compensation, or other reliefs.
On the other hand, the compressed 30-day period after the first hearing means both sides must be fully prepared with documents, proposals, and decision-making authority. Homebuyers who enter conciliation without clear settlement terms or supporting papers may find the window too short to negotiate effectively.
For builders, the pressure is higher. Delaying tactics or vague settlement offers are less likely to work. If a genuine settlement is possible, it must be finalized and put on record within the new deadline. Otherwise, the matter returns to the regular complaint track, where the builder faces the risk of adverse orders, interest, and possible further penalties.
Why the Change Matters Now
MahaRERA has repeatedly tried to make conciliation a real alternative rather than a holding pattern. Earlier circulars already set timelines, but the Authority has now decided that even those were not fast enough. By cutting the main window in half and removing the extension route, the regulator is signalling that conciliation must either produce a quick settlement or end promptly so that the formal complaint process can begin without further loss of time.
For homebuyers stuck in long-delayed projects, this is relevant because many complaints are routinely referred to conciliation at the first hearing if both parties agree. A shorter, stricter process reduces the chance that a case remains in limbo while the project continues to face delays.
The circular does not change the voluntary nature of conciliation, the composition of the benches, or the legal status of a settlement once recorded. It only accelerates the timeline and makes failure to settle within the window lead to an automatic referral back to MahaRERA.
Homebuyers and housing society members facing ongoing disputes should note the new deadlines carefully. If a complaint is referred to conciliation after 5 November 2026, the clock starts running under these revised rules. Preparation, clear demands, and readiness to decide within the 30-day window after the first hearing will now be critical.
