The notice, dated 24 June 2025, demands payment of ₹42,44,940 within 20 days. This amount arises from interest dues on ₹2.63 crore that the Maharashtra Real Estate Regulatory Authority (MahaRERA) had ordered the builder to pay to a homebuyer.

According to officials, if the developer does not clear the dues promptly, the Tahsildar will proceed with compulsory recovery, including attachment and sale of movable and immovable properties.

Legal Basis of the Action
The recovery is being enforced under Section 267 of the Maharashtra Land Revenue Code, 1966. This powerful provision allows the government to:

• Attach and sell any movable property, such as vehicles or equipment.
• Attach and sell land or flats owned by the defaulter to satisfy the payment.
• Seize the rights and interests in other immovable properties.

This section essentially treats the unpaid amount as if it were arrears of land revenue, giving the administration sweeping powers to recover dues without the need for fresh litigation.

Background
The action follows a MahaRERA order dated 25 March 2025 in Complaint No. CC006000000193619, which directed the developer to pay compensation, interest, and penalties under the Real Estate (Regulation and Development) Act, 2016.

Despite repeated reminders, the builder failed to comply, prompting the Collector Mumbai City to initiate recovery proceedings.

What This Means for Homebuyers
This development reinforces the enforceability of MahaRERA orders, sending a strong message that developers can no longer ignore their obligations. The Maharashtra government’s move demonstrates its commitment to protecting the interests of aggrieved homebuyers.

 Key Takeaway
If developers do not honour RERA orders, their properties can—and will—be attached and auctioned to recover dues.

Headline Suggestions for Homebuyer-Friendly Appeal

• “No Escape for Defaulting Builders: Govt to Attach Properties for MahaRERA Dues”
• “MahaRERA Triumph: Builder’s Assets Face Seizure Over Homebuyer Compensation”
• “Big Win for Homebuyers—Developer’s Property Attachment Begins for Non-Payment”

Also Read: MahaRERA Clarifies: Possession Without an OC is Not Legally Recognized

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Developers have been instructed by MahaRERA to open three separate bank accounts in a single bank, namely, 1) RERA Designated Collection Account- For all revenue received from homebuyers, 2) RERA Designated Separate Account- For 70% of funds allocated for project’s land and construction, and 3) RERA Designated Transaction Account- For balance 30% of revenue received. This decision will be effective from 1st July

RERA Designated Collection Account and RERA Designated Separate Account are legally protected from getting attached by any government agencies

Ultimately, this decision will help in enhancing the flat purchaser’s confidence and further improve the real estate sector’s credibility. This is another significant decision by MahaRERA for improved customer experience

 Starting July 1, developers in Maharashtra will not be able to take money from homebuyers and deposit in different bank accounts as it will become mandatory for them to maintain different designated bank accounts for purposes as stated by the Maharashtra Real Estate Regulatory Authority (MahaRERA).

So far, several developers have been asking homebuyers to draw payments towards different bank accounts for different purposes. For example, flat booking amount is deposited in one bank account and another bank account for amenities and infrastructure such as gymnasium, swimming pool, parking, etc.

To discontinue this practice and enforce discipline, ensure compliance, enhance efficiency, transparency, accountability and uniformity in financial operations of housing projects, thereby securing and protecting homebuyers’ investments, the MahaRERA has mandated developers to open three bank accounts in a single bank.

These include 1) ‘RERA Designated Collection Account’ for 100% of revenue from the flat buyer, 2) ‘RERA Designated Separate Account’ for 70% of funds allocated for project’s land and construction and 3) ‘RERA Designated Transaction Account’ for balance 30% of funds.

This directive will be mandatory to follow and effective from July 1, 2024. Relevant consultation paper was issued in mid-March to discuss the same with various stakeholders. Following extensive consultation and discussion, these measures will now be implemented.

Projects with more than one promoter will also have the flexibility to open a ‘RERA Designated Master Account’ to receive all collections from the homebuyers.

Section 4(2)(i)(D) of the Real Estate (Regulation and Development) Act, 2016, has a provision for dedicated bank accounts. This is to ensure transparency, financial discipline and better monitoring of transactions.

It is mandatory to segregate 100% of the revenue, that is the amount related to apartment’s booking and other charges (excluding government taxes and charges), received from the homebuyers. Thereafter, a minimum of 70% of the revenue will have to be transferred to another account, i.e. RERA Designated Separate Account, solely for land and construction expenditures. The balance 30% of the revenue can be transferred to the RERA Designated Transaction Account. Banks will facilitate this process through auto sweep. Funds in any of these accounts cannot be withdrawn via cheques, online banking, credit cards, debit cards or any other means.

With the entire operating procedures defined for receipt, expenditure and refund, the developers will not be able to excuse themselves, citing lack of funds, from returning the booking amount to those flat purchasers who intend to exit the project.

If a homebuyer cancels their registration, they will have to pay back 70% of the amount received as well as compensation for any losses from RERA Designated Separate Account. Interest on the amount will also be applicable. Furthermore, 30% of the original amount will be transferred from the developer’s RERA Designated Transaction Account.

In case of cancellation of a flat’s booking, the homebuyer in several instances has to take a time consuming and longer route of lodging a complaint, attending hearings, securing an order, sending relevant documents to the district collector for issuing of recovery warrants. This entire lengthy process will be shortened as funds will be available with the developer to refund and compensate the homebuyer for losses, if any. With bank details and funds available now, MahaRERA can efficiently provide instructions for recovery from the specified account. This decision will be crucial for such recoveries and prove to be a game-changer.

For the developer, the RERA Designated Transaction Account will be utilised for project related expenses other than land and construction.

RERA Designated Collection Account and RERA Designated Separate Account are legally protected from getting attached by any government agencies. The bank has to be vigilant that they do not allow creating any third party encumbrances on either or both of these two accounts. The collection and diversion of funds to any unauthorised accounts will be unacceptable.

All transactions in these RERA designated bank accounts will have to cease upon project’s completion. The bank accounts cannot be used unless MahaRERA extends the project. The developer cannot alter the bank account without MahaRERA’s approval.

Funds can be withdrawn only on submission of certificates from project’s chartered accountants, engineers and architects. If there is more than one promoter, their responsibilities will be as per their mutual agreement. This protocol has been made for the first time.

Due to several such provisions, there will be restrictions on misappropriation of money, transparency in fund’s utilisation, bring in financial discipline and immensely help in project’s timely completion.

Apart from this, many developers finance the project by mortgaging the land or flats or the entire project. Furthermore, they may divert funds from the project’s account without the knowledge of homebuyers. This lack of transparency could potentially lead to problems in the future for the project and buyers alike. Now, the promoter must declare the loans availed from any financial institutions against the mortgage of land or flats or the entire project. It will be mandatory for the developer to disclose the financial institution’s name, address, transaction date, sanctioned amount, withdrawn amount, balance amount, etc. The availed loan’s overall details along with amount utilized for construction should be certified by project’s Chartered Accountant with their UDIN number. It is only after following this process a developer can be allowed to withdraw the interest on loan.

Ajoy Mehta, Chairman, MahaRERA, “MahaRERA is committed to building trust among home buyers by legally empowering them to ensure their investments are secured and protected. MahaRERA has highlighted the legal rights of homebuyers in the housing projects concerning various crucial aspects such as parking, amenities, standardised agreements for sale, allotment letters, etc. To ensure financial discipline in project operations, MahaRERA has taken a crucial decision mandating opening of three bank accounts in a single bank for each of the projects. If a project involves more than one promoter, four bank accounts will be required. These measures will be effective from July 1. This move is aimed at having financial discipline and transparency in the managing revenue as well as expenditures related to project’s development, thereby enabling precise financial oversight in the real estate sector. Such a measure is expected to minimise potential delays in project’s completion, thereby benefiting homebuyers and enhancing the real estate sector’s credibility. MahaRERA is committed to fostering this trust.”

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To resolve homebuyers grievances, the Maharashtra Real Estate Regulatory Authority (MahaRERA) in August last year had directed the developers to set up a “Complaint Redressal Cell” for their respective projects. A review of the directive was done and it was found that only 195 across Maharashtra have set up such a cell and posted the details on their website. To ensure compliance of the directive, MahaRERA has taken cognisance of the same to ensure establishment of “Complaint Redressal Cell” in all the projects.

Usually, during the initial phase of home buying, there are multiple avenues from the developer’s end, including the marketing team, to provide project related information either on its website or in person. However, many projects do not specify who a homebuyer should contact if there is any complaint or a challenge after the entire project is sold off. As a result, the flat purchaser faces difficulties in getting their complaints resolved promptly, leading to misunderstandings and grievances even after project’s completion. This lack of communication can have a bearing on the project’s timeline. Considering this fact, MahaRERA expects the developers to set up a “Complaint Redressal Cell” for their respective projects to resolve homebuyers grievances. As per the circular, Cell should have at least one Complaint Redressal Officer dedicated towards this work. This person’s name and contact details should be prominently displayed at the project’s site.

It should have at least one Grievance Redressal Officer dedicated to this task, and their name, contact details, at project site should be clearly displayed. Apart from this, MahaRERA has also ensured that this information is readily available on the project’s website.

Dedicated Complaint Redressal Cells will help the complainant to get timely access to official and credible information. Additionally, if the developer puts up details of the total number of complaints received and redressed, the project’s credibility will get elevated.

Setting up of Complaint Redressal Cells is the need of the hour for prompt redressal of homebuyer’s grievances, and to give them the confidence that their investment is protected and secure. This will further elevate the real estate sector’s credibility and MahaRERA is committed towards the same.

Ajoy Mehta, Chairman MahaRERA said, “The establishment of trust in the service sector is necessary for the growth of business. So far, the construction sector has only been recognised as a product sector. Now it has started to grow as a service sector. In such a case, it is the need of the hour to have a grievance redressal mechanism in place. MahaRERA has given instructions to establish a grievance redressal cell in every project and has asked the stakeholders to take prompt action to further the sector’s credibility.”

Also Read: MahaRERA urges homebuyers to be cautious while investing in any of these projects

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