Builder Ignoring a MahaRERA Order? What Mumbai Buyers Can Do Under Sections 40 and 63
A MahaRERA Pune order reported on 10 October 2026 imposed a Rs 10 lakh penalty under Section 63 on developers who did not allot a flat as ordered. This guide explains how Mumbai buyers can enforce MahaRERA orders through recovery under Section 40(1) and penalties under Sections 63 and 64.
In 2010, two homebuyers in Pune received an allotment letter for a flat. In October 2025, after years of waiting, they won a MahaRERA order directing the developers to allot a 795 square foot flat, execute a registered agreement for sale within 45 days and pay interest. A year later, the flat had still not been allotted. On 10 October 2026, a news report described what MahaRERA did next: a lump sum penalty of Rs 10 lakh under Section 63 of the RERA Act, and a recovery warrant for the interest.
For a Mumbai buyer holding a MahaRERA order that a builder has not honoured, the case is a useful map. Winning the order is one step. Enforcing it is another, and the RERA Act provides tools for both.
The short answer. Under Section 40(1) of the RERA Act, interest, penalty or compensation that a promoter fails to pay can be recovered as an arrear of land revenue. Under Section 63, a promoter who fails to comply with the Authority's orders is liable to a penalty for every day of default that may cumulatively extend up to five percent of the estimated cost of the project; Section 64 raises the ceiling to ten percent, with possible imprisonment of up to three years, for ignoring the Appellate Tribunal. The trade-off: these tools add pressure and a recovery route, but using them takes further proceedings and time, and in the Pune case the buyers were still waiting for a flat when the penalty was imposed.
What happened in the MahaRERA case reported on 10 October?
According to a LawStreet report published on 10 October 2026, the Adjudicating Officer at MahaRERA Pune imposed a lump sum penalty of Rs 10 lakh under Section 63 on two developers, to be deposited with the MahaRERA office within two months. Failing payment, a recovery warrant would issue under Section 40(1).
The report says a final order dated 31 October 2025 had directed the developers to allot a flat of 795 square feet carpet area and execute a registered agreement for sale within 45 days, on receipt of the balance consideration under an allotment letter of 29 May 2010. They were also to pay simple interest on Rs 17.49 lakh from 24 June 2012 until possession, and Rs 20,000 as costs.
The flats in the project were reportedly sold and none was allotted to the complainants. The officer found non-compliance, including non-payment of interest, and issued recovery warrants for the accrued interest and the costs, addressed to the District Collector, according to the report. The project was in Pune, but the provisions used apply to every MahaRERA order, including those passed for Mumbai projects.
What can you do when a builder ignores a MahaRERA order?
You go back to the forum that passed the order. The Ministry of Housing and Urban Affairs' FAQs on the RERA Act, dated July 2025, explain the two enforcement routes. On money, if a promoter fails to pay any interest, penalty or compensation imposed by the adjudicating officer, the Regulatory Authority or the Appellate Tribunal, the amount becomes recoverable as an arrear of land revenue under Section 40. The FAQs add that an order or direction that is not followed can be enforced through prescribed legal procedures.
On defiance itself, Section 63 applies. The FAQs say that if the promoter fails to comply with the orders of the Authority, the promoter shall be liable to a penalty for every day of default, which may cumulatively extend up to five percent of the estimated cost of the real estate project.
The Pune case shows both tools used in the same order once non-compliance was established: a penalty under Section 63 and recovery warrants under Section 40(1) for the unpaid interest and costs.
How do the enforcement tools compare?
Each tool does a different job. The table below sets out five, with what the MoHUA FAQs say each provides and its limit for a buyer:
| Tool | What it provides | Limit for the buyer |
|---|---|---|
| Section 31 complaint | A complaint by an aggrieved person to the Authority or adjudicating officer | Form, manner and fee are set by state rules |
| Section 40(1) recovery | Unpaid interest, penalty or compensation recovered as an arrear of land revenue | Covers interest, penalty or compensation already ordered |
| Section 63 penalty | Daily penalty for not complying with the Authority's orders, up to 5% of project cost | In the Pune case, deposited with the MahaRERA office |
| Section 64 penalty | Daily penalty for not complying with the Appellate Tribunal, up to 10% of project cost or up to 3 years' imprisonment or both | Applies to Tribunal orders only |
| Appeal | Appeal to the Appellate Tribunal, and from the Tribunal to the High Court | Adds time if either side appeals |
The middle column is drawn from the MoHUA FAQs; the right hand column is our reading of what each tool means for a buyer. In the Pune case, Section 40(1) was the route used for the buyers' interest and costs, while the Section 63 penalty was to be deposited with MahaRERA.
What does the Section 63 ceiling mean in rupees?
The ceiling is tied to the size of the project, not the size of your claim. Take an illustrative project with an estimated cost of Rs 200 crore. Five percent of that, the cumulative ceiling under Section 63 for not complying with the Authority's orders, works out to Rs 10 crore. Ten percent, the ceiling under Section 64 for not complying with the Appellate Tribunal, would be Rs 20 crore. These are illustrations of the arithmetic, not figures from any MahaRERA order.
The ceiling is a maximum. The penalty actually imposed is for the Authority to decide, and in the Pune case it was a lump sum of Rs 10 lakh. What the ceiling tells a buyer is that the Act gives the regulator room to escalate if non-compliance continues, which is why a clear record of each missed deadline matters.
How long should the process take?
The Act sets targets rather than hard limits. According to the MoHUA FAQs, Section 29 says the Authority should endeavour to dispose of complaints as expeditiously as possible but not later than sixty days from the date of filing, and where it cannot, it must record its reasons. Section 44 sets the same sixty day endeavour for the Appellate Tribunal.
The Pune case shows how far real timelines can stretch. The allotment letter was dated 2010, possession was due in 2012, the final order came in October 2025, and the penalty for non-compliance was reported in October 2026. Enforcement applications are part of that timeline, which is why they are worth filing promptly once a compliance deadline in an order has passed.
The provisions themselves have long been in force. The MoHUA FAQs say Sections 3 to 19, Section 40 and Sections 59 to 70 were notified for commencement with effect from 1 May 2017.
Where does a Mumbai buyer start if the order is about delay?
If your order arises from delayed possession, Section 18 is where it began. Section 18 of the Act, the FAQs say, gives an allottee whose possession is delayed the right to withdraw from the project and claim a full refund with interest and compensation, or to stay with the project and receive interest for the delay. We set out how that choice works in our guide to refund or interest under Section 18 for Mumbai buyers.
The FAQs also say the adjudicating officer is mandated to decide disputes under Sections 12, 14, 18 and 19, and must be a person who is or has been a District Judge. When deciding those disputes, the officer has regard to the amount of disproportionate gain or unfair advantage, the amount of loss, the repetitive nature of the default and other factors.
Before you file anything, confirm the project's registration details on MahaRERA, which our guide to verifying a MahaRERA registration walks through. Whether your flat is in an older project or a newer one such as Prestige Place in Kanjurmarg, the registration number is the reference every filing will need.
What should you prepare before filing for enforcement?
A compliance application is stronger when the record is complete. Use this checklist:
- Keep a certified copy of the MahaRERA order with every direction and deadline marked.
- Note the date each deadline in the order expired without compliance.
- Record every payment you made, with receipts, and any balance consideration the order mentions.
- Calculate the interest due under the order up to the date of your application.
- Keep copies of letters or emails asking the promoter to comply.
- Note the project's MahaRERA registration number and the promoter entities named in the order.
- Ask, in the same application, for penalty under Section 63 and recovery under Section 40(1).
A lawyer familiar with MahaRERA practice can help with the form of the application. The point of the checklist is that the facts of non-compliance are yours to prove.
Frequently asked questions
Can MahaRERA recover money a builder owes me under its order?
Yes. Section 40(1) of the RERA Act, as explained in MoHUA's July 2025 FAQs, makes unpaid interest, penalty or compensation imposed by the adjudicating officer, the Authority or the Appellate Tribunal recoverable as an arrear of land revenue. In the Pune case reported on 10 October 2026, a recovery warrant was addressed to the District Collector.
How large can the penalty be if a builder ignores a RERA order?
For orders of the Authority, Section 63 provides a penalty for every day of default that may cumulatively extend up to five percent of the estimated project cost. For orders of the Appellate Tribunal, Section 64 allows up to ten percent, or imprisonment of up to three years, or both.
Where was the Section 63 penalty paid in the Pune case?
According to the LawStreet report of 10 October 2026, the Rs 10 lakh penalty was to be deposited with the MahaRERA office within two months. The buyers' own money claims, the accrued interest and Rs 20,000 in costs, were covered by recovery warrants under Section 40(1) of the RERA Act.
How quickly must MahaRERA decide a complaint?
According to MoHUA's FAQs, Section 29 says the Authority should endeavour to dispose of complaints as expeditiously as possible and not later than sixty days from filing. Where it cannot, it must record its reasons. The Appellate Tribunal has the same sixty day endeavour under Section 44.
Last updated 2026-10-20. PropNewz Team.
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