India, Nov. 23 -- The Maharashtra Real Estate Regulatory Authority (MahaRERA) has issued a new Standard Operating Procedure (SOP) that could see developers landing in jail for up to three months if they fail to pay compensation awarded to homebuyers.

In a circular released earlier this week, MahaRERA laid out a step-by-step mechanism to enforce compensation orders passed by its designated Adjudicating Officers. Homebuyers can approach the regulator on a range of issues, including delayed possession, poor construction quality, inadequate parking, or missing amenities, following which adjudicating officers determine compensation based on the merits of each case.

Despite thousands of orders directing builders to compensate homebuyers, reco...