MahaRERA Issues Recovery Warrant Against Developer Over Unpaid Interest Mumbai Flats

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has issued a recovery warrant against Omkar Realtors and Developers, directing officials to recover over ₹26 lakh in delayed interest payments for homebuyers of the Alta Monte Signet project in Malad. The decision follows repeated delays in handing over flats and the developer’s failure to comply with a September 2024 order.

The warrant, forwarded to the Mumbai suburban district collector, instructs authorities to recover the amount from the developer and disburse it to complainants. The case involves two buyers who booked flats in December 2017 and were initially promised possession by December 2020, with a one-year grace period. After successive postponements, the buyers approached MahaRERA, seeking possession, interest on the delayed payments, and reimbursement of pre-EMI contributions. In its order, the authority noted the developer’s communication claimed near completion, whereas construction progress reflected on MahaRERA’s portal remained minimal. Officials observed that the developer had collected the full sale consideration without advancing the project as committed.

MahaRERA highlighted that the buyers had opted for a loan scheme wherein the developer was to pay their EMI installments until possession. The developer’s cessation of these payments forced the buyers to manage instalments themselves to protect their credit scores. While MahaRERA refrained from adjudicating on this contractual matter, it advised buyers to pursue alternative legal remedies. The developer subsequently revised possession to December 2024, yet the authority concluded that this violated the RERA Act. Consequently, the developer was directed to pay interest on amounts already collected. More than a year later, Omkar Realtors failed to comply, prompting the issuance of the recovery warrant.

Industry observers noted that such enforcement actions underline the regulatory framework’s role in safeguarding homebuyers’ financial and legal interests. “MahaRERA’s proactive intervention reinforces accountability in Mumbai’s residential real estate sector,” said a senior urban policy analyst. Officials highlighted that recovery warrants serve as a critical mechanism to ensure compliance with timely delivery norms and financial obligations. The incident also emphasises the importance of transparent communication and project monitoring by developers. Stakeholders view this as a cautionary example for real estate firms across Maharashtra, underlining the regulatory emphasis on equitable treatment and consumer protection.

MahaRERA’s action ensures that buyers are compensated for delays, reinforcing the authority’s mandate to uphold fairness and protect citizen investments in urban housing projects. The recovery process will be closely monitored by the collector’s office to ensure swift disbursement to the complainants.

MahaRERA Issues Recovery Warrant Against Developer Over Unpaid Interest Mumbai Flats