HC Slams Collector's Office Over RERA Refund Delays

The Bombay high court, on July 11, 2026, expressed strong disapproval of the collector's office regarding the execution of RERA decrees, labeling the situation "extremely sorry." Justices AS Gadkari and Kamal Khata noted that decrees mandating RERA refunds are not being implemented diligently by the collectorate.

Previously, on July 10, 2026, the court issued notices to the Mumbai suburban district collector and a tehsildar concerning their failure to comply with an order to disclose a builder's assets. The court also appointed a court receiver for a Khar flat to safeguard the interests of a buyer seeking a Rs 1.5 crore refund.

In February 2026, the HC had observed builders exploiting legal loopholes to evade refund orders. The court had requested the state advocate general's assistance in formulating measures against such practices. A buyer initiated proceedings in 2019 to withdraw from a Chembur project due to delays and sought a refund with interest.

MahaRERA had ordered the builder to provide a refund with 10.4% interest in 2020. Despite the builder's appeals reaching the HC in 2022, the recovery process remained stalled. The buyer's lawyers approached the HC again in 2024 seeking directions.

The builder was directed to disclose financial stakes in various entities. On July 8, 2026, the HC noted the builder's incomplete disclosure, prompting a directive for the collector to personally verify and report the builder's financial interests by July 10, 2026. A subsequent reply from a tehsildar on July 10, 2026, was deemed insufficient by the HC.

To secure the refund, the HC ordered the court receiver to take physical possession of a builder's flat in Khar by July 13, 2026. The matter was scheduled for further hearing on July 17, 2026.