MAHARERA

CA. Mahadev Birla, CA Nipun Singhvi

1. Case Law Study

Macrotech Developers Ltd vs. Joint Sub-Registrar and Ors. (WRIT PETITION (L) NO. 18256 OF 2025)

This article attempts to discuss the issue regarding power of RERA Authority for cancellation of registered documents?

Issues:

“Whether MahaRERA has the power to direct the Sub-Registrar to cancel a registered Agreement for Sale in execution of its order”?

What is the correct procedure for execution of order where the cancellation of registered agreement was allowed?

Fact of the Case:

In the present case, the Promoter filed a complaint before the MahaRERA against the Allottee for default in payment. The Promoter sought relief for execution of a Deed of Cancellation by the Allottee, or alternatively, for appointment of a fit person to execute and register the Deed of Cancellation.

The MahaRERA allowed the complaint; however, the Allottee failed to comply with the order. Consequently, the Promoter initiated execution proceedings before MahaRERA. In the execution proceedings, MahaRERA directed the Sub-Registrar to unilaterally cancel the Agreement for Sale.

Aggrieved by the said order passed in execution, the Promoter preferred a writ petition before the Hon’ble Bombay High Court. The Hon’ble Bombay High Court allowed the petition and directed the Promoter to approach MahaRERA for proper execution of the original order. While granting relief, the Hon’ble Court observed that MahaRERA had committed a grave error in directing Sub-Registrar to unilaterally register the cancellation of the Agreement for Sale instead of appointing a fit person to execute and register the Deed of Cancellation as originally contemplated.

2. MahaRERA Updates

MahaRERA Circular 50/2025 dated 18.11.2025

In pursuance of the order passed by the Hon’ble Bombay High Court in Writ Petition (L) No. 18256 of 2025, the MahaRERA issued Circular No. 50/2025. By the said circular, it has been directed that in all pending non-compliance applications awaiting final adjudication, wherein complaints have been filed seeking registration of an Agreement for Sale or a Deed of Cancellation, a fit and proper person shall be appointed to execute and register the Agreement for Sale or the Deed of Cancellation, as the case may be.

3. MahaRERA Circular 51/2025 dated 18.11.2025

In pursuance of the order passed by the Hon’ble Bombay High Court in Writ Petition 3565 Pursuant to the order dated 06.10.2025 passed by the Hon’ble Bombay High Court, the MahaRERA issued Circular No. 51/2025 for enforcement of orders relating to recovery of interest, compensation, or penalty. The Hon’ble High Court held that the execution of MahaRERA orders must follow the same procedure as execution of decrees of a civil court.

Circular No. 51/2025 provides as follows:

  1. For recovery of the consideration amount along with interest, interest for delayed possession, or compensation, a non-compliance (execution) application shall be filed after expiry of 60 days from the date of the order.

  2. The execution application shall be listed for hearing within 4 weeks.

  3. The respondent shall be given a reasonable opportunity to comply with the order of the Authority.

  4. If the respondent fails to comply within the time allowed, the respondent shall be directed to file an affidavit disclosing all movable and immovable assets, including bank accounts and investments.

  5. If the respondent does not file the disclosure affidavit, the respondent shall be required to produce the relevant books and documents.

  6. If books and documents are also not produced, the execution application will be heard on merits and the Authority shall pass an order incorporating the following:

    • Imposition of penalty;

    • Issuance of a Recovery Warrant (Revenue Recovery Certificate) to the Collector for attachment and auction of movable/immovable assets;

    • Invocation of the Code of Civil Procedure, 1908 and transmission of the matter to the Principal Civil Court under Order XXI.

  7. If asset details are subsequently received, the Recovery Warrant shall be amended and forwarded to the concerned Collector to attach and auction the property to recover the outstanding amount.

  8. The MahaRERA IT system shall facilitate and support the above execution mechanism.