This practice contravenes the core provisions of the Real Estate (Regulation and Development) Act, 2016 (RERA). Under Section 4(2)(l)(D) of the Act, every promoter must maintain a separate designated bank account for each registered project. At least 70% of the funds collected from homebuyers (allottees) must be deposited into this project-specific “separate account,” which can only be used for land acquisition costs and construction expenses related to that specific project. The remaining 30% goes into a transaction account for other permissible uses.

MahaRERA reinforced this in mid-2024 by mandating three separate accounts per project (in a single scheduled bank): a collection/master account for all inflows, the 70% separate account for protected project funds, and a 30% transaction account. These accounts must be free from liens, escrows, or third-party controls to prevent misuse.

Using a common bank account for multiple projects defeats this ring-fencing mechanism. It allows funds from buyers in one project to be diverted to another (or for unrelated purposes), risking delays, incomplete construction, or defaults — issues that plagued the sector pre-RERA. By violating project-specific financial segregation, promoters breach transparency and buyer protection rules, prompting MahaRERA to freeze accounts, halt new sales, and prohibit execution of agreements for sale or sale deeds until full compliance.

This list, available on the official MahaRERA website (maharera.maharashtra.gov.in) under the Home Buyers section → Abeyance Project List → Due to Common Bank Accounts, currently features around 100 projects (last updated around January 21, 2026). The authority’s action freezes the project’s bank accounts and bars promoters from fresh bookings or transfers.

What should homebuyers do?

• Always verify the project’s status on the MahaRERA portal before paying any amount or signing documents.
• Avoid projects listed in abeyance — new purchases are legally blocked.
• If already invested, monitor updates, consider filing complaints via MahaRERA if delays occur, and seek legal advice for refunds or possession issues.
• Prefer established promoters with clean compliance records and RERA-registered projects showing active status, quarterly updates, and separate accounts.

Here is the complete list of projects currently in abeyance due to common bank accounts (as per MahaRERA records):

You can visit https://maharera.maharashtra.gov.in/common-bank-account directly, as the list is dynamic. If a project you’re interested in is here, avoid new transactions—accounts are frozen, and sales are prohibited until compliance.

Also Read: MahaRERA Directs Developer to Allocate Car Parking to Homebuyers, Warns of Penalty for Non-Compliance

The post Buying a Home? Then Check This List: MahaRERA Has Prohibited These Builders from Selling Flats appeared first on Square Feat India.

From now on, if a builder (or allottee) fails to sign and register the document as directed by MahaRERA, an authorised MahaRERA officer will step in, sign the document on behalf of the defaulter, and the Sub-Registrar has been directed to register it immediately.

What the New Circular Does

• Applies to all orders directing execution and registration of Agreement for Sale or Deed of Cancellation.
• If the defaulting party does not comply, MahaRERA will appoint a “fit and proper person” (usually a senior officer) to execute the document in place of the builder/allottee.
• Every such MahaRERA order will now specifically direct the concerned Sub-Registrar / Registrar of Assurances to register the document even when signed by the MahaRERA officer.
• The rule applies with immediate effect and also covers all pending non-compliance/execution cases.

This circular directly implements the Bombay High Court Division Bench judgment dated 06.10.2025 in Writ Petition (L) No. 18256 of 2025.

End of a 8-Year Nightmare

For years, even after winning MahaRERA complaints, homebuyers remained stuck because builders simply refused to appear before the Sub-Registrar to sign the final documents. Courts earlier ruled that MahaRERA itself could not sign on behalf of the builder — forcing buyers into lengthy civil suits.

The High Court has now closed that loophole forever. With Circular 50/2025, registration will happen even if the builder never shows up.

How It Works in Practice

1. MahaRERA passes order → “Execute and register Agreement/Cancellation Deed within X days, failing which authorised officer of MahaRERA will execute and register the same.”
2. Builder ignores → homebuyer files simple non-compliance application.
3. MahaRERA officer signs the document on builder’s behalf.
4. Document presented to Sub-Registrar with the MahaRERA order → registration completed the same day.

Homebuyers no longer need to chase builders or file separate civil suits for execution.

Related Development – Circular 51/2025 (Same Date)

Builders now face civil jail for non-payment of money orders On the very same day, MahaRERA issued Circular 51/2025 giving itself full civil-court execution powers for refund + interest orders. Defiant builders now risk:

• Property & bank account attachment
• Heavy penalties
• Reference to civil court for arrest and detention in civil prison (up to 3 months)

Together, Circulars 50 & 51 have made MahaRERA orders virtually bullet-proof in Maharashtra.

What Homebuyers Should Do Now

If your MahaRERA order for registration of Agreement for Sale or Cancellation Deed is pending execution:

• File/update the non-compliance application on maharera.mahaonline.gov.in
• Quote Circular 50/2025 — registration can now happen within weeks instead of years.

Legal experts are calling 18 November 2025 a “red-letter day” for Maharashtra homebuyers — the day MahaRERA finally got real teeth.

Also Read: MahaRERA Updates Guidelines for Hearing Complaints, Prioritizes Seniority

The post MahaRERA Officer Will Now Register Your Flat or Cancellation Deed if Builder Refuses appeared first on Square Feat India.

Issued on 18 November 2025, the new rules give MahaRERA orders the same legal force as a civil court decree and, for the first time, open the door to civil imprisonment of builders or their directors who wilfully refuse to pay despite having the means.

The circular is in direct compliance with the Bombay High Court Division Bench judgment dated 06.10.2025 in a Writ Petition.

Key Features of the New Enforcement Mechanism

• After 60 days of non-payment, the homebuyer can file an online “Non-Compliance / Execution Application” on the MahaRERA portal.
• Case listed and heard within 4 weeks.
• Builder given one last chance to comply.
• On continued defiance, MahaRERA will order the builder to file a sworn affidavit disclosing all movable and immovable assets, bank accounts and investments.
• Failure to file the affidavit → builder/director summoned in person for examination (Order XXI Rule 41 CPC).
• Persistent non-compliance triggers simultaneous triple action:
  1. Imposition of heavy penalty
  2. Revenue Recovery Certificate to the District Collector for attachment and auction of properties and freezing of bank accounts
  3. Reference to the principal civil court for execution under Order XXI Rule 1(2) & (3) CPC – the provision that allows arrest and detention in civil prison (up to 3 months) of a judgment-debtor who can pay but refuses to pay.

Since MahaRERA does not have its own prison, the actual arrest and detention will be carried out by the civil court.

Why This Changes Everything

Until now, many builders treated MahaRERA monetary orders as toothless, forcing homebuyers into years of follow-up. With this circular, defaulters now risk losing their properties, bank balances and, in extreme cases, personal liberty.

Homebuyer associations and lawyers have hailed it as the strongest recovery mechanism introduced by any RERA authority in the country.

What Homebuyers Should Do Immediately

If you have a MahaRERA order awarding refund + interest or compensation that remains unpaid for more than 60 days:

1. Visit https://maharera.mahaonline.gov.in
2. Log in and file the new “Non-Compliance / Execution Application” (the portal has been updated to accept these applications)
3. Keep a copy of the original order ready

Legal experts predict a dramatic improvement in compliance once the first few recovery warrants and civil court references are issued.

With this Circular now in force, MahaRERA has finally given homebuyers the real enforcement power they were promised under the RERA Act.

Also Read: MahaRERA Asks Builder to Submit Completion Milestones to Homebuyers While Granting Extension

The post MahaRERA Circular: Builders Who Defy Refund & Interest Orders Can Now Face Jail, Property Attachment and Bank Freeze appeared first on Square Feat India.