MahaRERA fines two developers ₹10 lakh for ignoring an order to give buyers their flat

Rules and rates as of 12 October 2026.

What the order says

A buyer who wins at MahaRERA has not necessarily got her flat. On 8 October 2026, MahaRERA's Adjudicating Officer in Pune, R. K. Malabade, dealt with exactly that gap in a non-compliance application filed by Madhu Alvani and Bina Kamal Khiani against Sai Enterprises and Super Construction, the developers of the project registered as P51800015798 ("Sethia Imperial Avenue", earlier called "Sun Gates").

On 31 October 2025, a Member of MahaRERA had ordered the developers to allot the buyers a flat of 795 sq ft carpet area and execute a registered agreement for sale within 45 days, once the buyers paid the balance price under their 2010 allotment letter. The developers were also told, jointly and severally, to pay simple interest on the ₹17,49,000 already paid, from 24 June 2012 until possession, at the rate prescribed under rule 18 of the Maharashtra RERA rules, and Sai Enterprises was to pay ₹20,000 costs.

Almost a year later, none of it had happened. The developers said all flats in the project were sold. Sai Enterprises argued it had no contract with the buyers and that the flat did not exist in its registered project. Super Construction said an architect's certificate showed about 480 sq ft carpet area, that 795 sq ft was a saleable figure, and that a review application was pending.

The Adjudicating Officer found non-compliance and noted the interest was unpaid. He ordered the developers to pay a lump-sum penalty of ₹10,00,000 under section 63 of the RERA Act within two months, deposited with MahaRERA, failing which it too will be recovered under section 40(1). He also issued a recovery warrant to the concerned District Collector for the interest accrued since 24 June 2012 and the ₹20,000 costs, with a compliance report to come back to the Authority.

The order does not rule on the 480 versus 795 sq ft dispute or on the pending review, and it does not appoint anyone to sign the agreement on the developers' behalf. The flat itself remains unresolved.

The order at a glance

Direction	Who pays	Amount	How it is enforced
Penalty for not complying (s.63)	Both developers	₹10,00,000 lump sum	Deposit with MahaRERA within two months, else recovery under s.40(1)
Interest on ₹17,49,000 from 24 June 2012	Both developers	Accrued interest at the rule 18 rate (not quantified in the order)	Recovery warrant to the District Collector under s.40(1)
Costs from the 2025 order	Sai Enterprises, under the 2025 order	₹20,000	Included in the same recovery warrant
Compliance report	District Collector	-	To be filed with MahaRERA

What the law gives a buyer when a builder ignores an order

Three provisions of the RERA Act, 2016 do the work.

• Section 40(1): unpaid interest, penalty or compensation ordered by the Authority, Adjudicating Officer or Appellate Tribunal is recoverable "as an arrears of land revenue". In practice the Collector recovers it with the same powers used for unpaid land revenue.
• Section 40(2): any other direction, such as executing an agreement, is to be enforced "in such manner as may be prescribed" by the state rules.
• Section 63: a promoter who fails to comply with the Authority's orders is liable to a penalty for every day the default continues, which can add up to 5% of the estimated cost of the project. The penalty goes to the regulator, not to the buyer. Its job is pressure.

The interest itself rests on the proviso to section 18(1): a buyer who stays in the project is paid interest for every month of delay, till possession, at the prescribed rate. In Maharashtra, rule 18 sets that rate at the State Bank of India's highest marginal cost of lending rate (MCLR) plus 2%.

Worked example: how big is the interest?

The order does not put a number on the interest, so this is an illustrative estimate only. SBI's highest MCLR on its website today is 8.80% (three-year tenor, effective 15 September 2026). Plus 2% gives 10.80%. SBI's MCLR has moved many times since 2012, and the Authority or Collector may compute it differently.

Formula: interest = principal × rate × days ÷ 365.

From 24 June 2012 to 12 October 2026 is 5,223 days. So ₹17,49,000 × 10.80% × 5,223 ÷ 365 = about ₹27,02,967. That is roughly ₹1,88,892 a year, or ₹15,741 a month, and it keeps running until possession. At 10% the figure would be about ₹25,02,747; at 11.5%, about ₹28,78,159.

Set against that, the ₹10 lakh penalty is smaller than the interest bill already owed to the buyers.

What buyers holding an unexecuted order can do

File a non-compliance application in the original complaint on the MahaRERA portal, attaching the order and proof that the deadline has passed. Ask specifically for a recovery warrant under section 40(1) for money dues, and for a section 63 penalty. Keep a running interest computation ready. Once a warrant issues, follow up with the Collector's office, which handles the recovery. Where the order is for something other than money, a lawyer can advise on what the state rules allow.