MahaRERA Clarifies: Compensation And Refunds In Consumer Cases Are Paid Directly To Homebuyers, Not To Regulator

Mumbai: Whenever the Maharashtra Real Estate Regulatory Authority (MahaRERA) orders compensation, interest for delayed possession, or a refund in favour of an aggrieved homebuyer, the money is paid directly into the buyer’s account—not to the regulator itself.

Clarifying a common misconception, MahaRERA officials and industry experts confirmed that in consumer-centric cases, such as delay in possession or loan-related cancellations, the relief granted—whether a financial refund or compensation—is meant solely for the complainant.

While MahaRERA does have powers to impose penalties or fines on errant developers for violations or non-compliance, those punitive amounts—if levied—are separate and may be directed to the authority. However, in consumer complaint cases, the ordered sums are purely reparative and intended to redress the grievances of homebuyers.

Anand Gupta, Chairperson of the Housing and RERA Committee at the Builders Association of India (BAI), emphasized that RERA has been a transformative force in the real estate sector.

“Earlier, there was no regulator and the sector lacked transparency. But now, with MahaRERA in place, there is accountability. It is important to understand that compensations or refunds go to the buyer, not to MahaRERA, which acts as a watchdog and facilitator,” Gupta explained.

He added that RERA norms, such as the requirement that 70% of funds collected must be allocated to the same project, help protect the interests of buyers and build trust in the sector.

The clarification comes amid increasing public interest in RERA rulings, particularly in cases where buyers win refunds or interest payments after facing project delays, loan issues, or booking cancellations. The regulator has been issuing orders consistently to ensure timely justice and restore consumer confidence, as per stakeholders.