The Maharashtra Real Estate Regulatory Authority (MahaRERA) has issued a recovery warrant against Omkar Realtors and Developers for failing to pay interest to homebuyers for delays in handing over a residential unit in Mumbai.

The warrant, sent to the Mumbai suburban district collector, directs the recovery of over ₹26 lakh as arrears of land revenue, based on a MahaRERA order passed in September 2024. The action follows prolonged delays in the Malad-based Alta Monte Signet project, where the developer allegedly collected the full sale consideration without completing construction or providing clear timelines for delivery, according to a report by The Hindustan Times.

“You are hereby directed to recover the ordered amount from the respondents as the arrears of land revenue and pay it to the complainant…” reads the warrant issued last month.

The case involves Rohit Wade and Bhavika Patil, who booked a flat in Malad’s Alta Monte Signet project in December 2017. They were supposed to get the flat in December 2020, with a grace period of one year.

After repeated delays, the buyers approached MahaRERA seeking possession of their flat, interest for the delay, and reimbursement of the pre-EMI payments they had paid. In its September 2024 order, MahaRERA noted that despite several follow-ups, the developer had failed to provide clear updates on construction progress.

The authority observed that in email exchanges between the developer and the complainant, he claimed the project was nearing completion. However, information available on MahaRERA’s website showed minimal progress, limited to the early stages of construction. MahaRERA found that the developer had collected the entire sale amount without completing the project. MahaRERA noted that the developer had “miserably failed to come up with concrete timelines for finishing the project.”

While buying the flats, the buyers had opted for a loan scheme under which the developer was supposed to pay their loan installments until they were in possession of the flats. MahaRERA noted that the developer stopped paying these installments, forcing the buyers to pay them to avoid damage to their credit score. MahaRERA said it could not decide this issue since it was an agreement between the buyer and the developer, and advised the buyers to seek other legal remedies.