Developers from greater Mumbai and Thane top list of those cocking a snook at real estate regulator, with 300 repayment warrants over pending projects issued in city and suburbs and 94 in the neighbouring district
MahaRERA issued over 700 recovery warrants in 14 districts last year. Representation pic
Despite MahaRERA’s order, developers failed to compensate hundreds of home buyers in Mumbai and the suburbs for pending projects. Last year, the regulator stepped up efforts and issued 304 warrants for recovery of close to Rs 336 crore. Thane district has the second-highest defaulters, with 94 warrants of the 700 issued in 14 districts.
The Maharashtra Real Estate Regulatory Authority (MahaRERA) started working on complaints last year, after the COVID-19 pandemic restrictions were lifted. The officials reviewed all the complaints received since 2017 and prepared a list of developers who have failed to comply with the regulator’s order related to refund of money or compensation to home buyers for pending/stalled projects or delayed delivery.
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Owing to a huge number of complaints from home buyers about developers not paying compensation, MahaRERA chairman Ajoy Mehta and other members appointed a retired additional collector in December to expedite the process of executing the pending warrants that are issued through the office of district collectors. Since December, of the 700 plus warrants that had been issued across 14 districts, 118 were executed and over Rs 101 crore was recovered. As of now, nearly 582 warrants are pending state-wide.
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The warrants
Of the 700 warrants, nearly 304 were issued to erring developers in Mumbai city and the suburbs, the highest in the state, followed by Thane with 94 warrants. According to sources, the 304 warrants were to recover around Rs 336 crore, including Rs 54 crore from the island city and nearly Rs 282 crore from the western and eastern suburbs. Sources, however, did not reveal how many of the 118 recovered warrants were from Mumbai and the suburbs. “Collector offices concerned have been asked to recover fines from the developers,” a MahaRERA official told mid-day on condition of anonymity.
MahaRERA issued recovery warrants after developers failed to comply with its order to issue refund/compensation to buyers for pending projects or delayed delivery. Representation pic
Under Section 40 of the Real Estate (Regulation and Development) Act, 2016, on recovery of interest, penalty or compensation or refund, if the developer/promoter or real estate agent fails to pay up, the cost is recovered as arrears of land revenue. According to provision of the Maharashtra Land Revenue Code, the office of the district collector has right to recover arrears of land revenue. Once the adjudicating officer issues the recovery warrants, the collector office starts the process to attach the property. “If the erring person still doesn’t pay the amount, then the property will be auctioned to recover the arrears,” the official said.
What’s being done
Asked about measures taken for effective implementation of MahaRERA orders, the official said, “Mr [MahaRERA chairman Ajoy] Mehta, along with other senior officials, is closely monitoring the developments. District collectors concerned have been asked to appoint an official dedicated for execution of recovery warrants,” the official said.
“The retired additional collector will coordinate with the offices of all the 14 district collectors who have been asked to execute the warrants. This will not only help keep track of the status of the warrants, but will also ensure that buyers do get their dues on time or as soon as possible,” the official added. “If required, another meeting of all officials concerned will be called to ensure that pending warrants are taken to its logical end at the earliest,” the official concluded.
12 developers fined Rs 5.85 lakh
On Thursday, MahaRERA conducted hearings of developers who are accused of advertising their projects without registration. It had issued notices to 54 developers for advertising without the necessary registration number issued by MahaRERA. “In the first phase, 15 cases were heard and 12 of them fined Rs 5.85 lakh combined for violation,” MahaRERA said in a press release. The penalty on each developer ranges from Rs 10,000 to Rs 1.5 Lakh.
Rs 54 cr
Approx amount owed to buyers in island city
Rs 282 cr
Approx amount owed to buyers in the suburbs
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