The Maharashtra Real Estate Regulatory Authority (MahaRERA) has collected over Rs 140 crore in compensation this year from real estate developers who neglected to give ownership of units to purchasers, causing them undue hardship.
This is one of the most significant recoveries carried out by any real estate authority in the nation.
So far this year, the government has issued 1,123 warrants to collect about Rs 764 crore from developers for the delay in turning over flats, with a threat to freeze their bank accounts and attach assets. Recovery has been achieved from 110 of the 459 such projects identified by the government based on complaints from homeowners.
The recovery is especially significant in light of the enforcement of orders and execution of recovery warrants issued by RERA regulatory bodies in different jurisdictions experiencing various challenges and homeowners voicing concerns about the same.
“Recovery for distressed homebuyers is our top priority.” We have been issuing warrants to project developers and directing the recovery to the collector if it is not completed within the specified time range. “We are also in constant contact with all district collectors regarding warrant recovery,” Ajoy Mehta, Chairman of MahaRERA, told ET.
He further said that MahaRERA has made key choices this year to empower and protect homeowners, resulting in beneficial and long-term benefits for the real estate market. MahaRERA has increased openness in the real estate market by holding developers responsible, setting a precedent for others to follow. This not only helps the developers by providing responsibility, but it also benefits homebuyers.
These decisions include the establishment of a micro control room to meet regulatory requirements, standardized agreements for sale and allotment letters, providing detailed information on all project proponent transactions via a unique identification number (DIN), and a self-affidavit with details of past work.
According to Mehta, MahaRERA wants to improve developer responsibility by providing a strong framework that makes their duties unambiguous. The basic idea is to avoid any conflicts or complaints and to respect the core principles of the Real Estate (Regulation & Development) Act, 2016.
“This commitment to a systematic approach is critical not only for ongoing projects but also for the construction sector’s future development. MahaRERA will continue to design and implement approved operating procedures in line with the increasing demands and difficulties of the real estate business to avoid conflicts and ensure the heightened security of homebuyers,” he added.
Furthermore, MahaRERA has created a detailed framework for quality construction to guarantee that accountability for flaws stays within the specified time limit. To address this, a thorough paper was issued, outlining the steps that would be done to ensure accountability.
Following the completion of the deadline for providing input on this consultation paper, an in-depth discussion with experts and practitioners in this sector will take place to develop Standard Operating Procedures (SOPs) for immediate implementation.
