Panvel tehsildar’s office auctions properties of developer N K Bhupeshbabu for Rs 4.82 crore; latter says will challenge auction in Bombay High Court
MahaRERA had issued 99 warrants to recover Rs 22.2 crore from 38 projects. Representation pic
Home buyers awaiting compensation from N K Bhupeshbabu, promoter of Enkay Garden, are a step closer to receiving their pending dues. The Panvel tehsildar’s office has recovered Rs 4.82 crore by auctioning the Navi Mumbai builder’s properties. The developer, however, is planning to contest the recovery in the high court on grounds that it has been done in violation of rules and he was not given any notice for the same.
ADVERTISEMENT
MahaRERA had issued 99 warrants to recover Rs 22.2 crore from 38 projects as compensation to home buyers in Raigad district. Of these, the Panvel tehsildar’s office had recently announced an auction of various properties of N K Bhupeshbabu, for recovery of around Rs 6.5 crore against 33 pending warrants in the name of the developer.
Spread around 25 acres, the Enkay Garden has around 1,000 flats of which the developer claims 650 have been 100 per cent complete and the remaining are 90 per cent ready. “The project started in 2010. The project has been delayed due to many factors; one of them is several changes in government, especially the planning authority. My priority is to complete the project and not refund the amount,” the developer said, adding, “I will be challenging this recovery process in the high court on grounds that it was done without giving any notice for the same.”
Also Read: Builders owe Mumbai homeowners Rs 336 cr!
The developer further told mid-day that a private NBFC had sanctioned Rs 30 crore and taken over his existing loan of Rs 15 crore. “The NBFC didn’t disburse the further amount as promised. This has caused more damage to the project,” N K Bhupeshbabu added.
Meanwhile, a senior official attached to the regulatory body stated that the revenue department was expecting Rs 3.72 crore recovery from the auction process. “But, in reality, the auction fetched nearly Rs 4.8 crore,” the official added.
Last year, in December, MahaRERA Chairman Ajoy Mehta and other members of the authority collectively took the decision to appoint a retired additional collector to expedite and monitor recovery through execution of warrants. Nearly four months after the appointment of the nodal officer, the first auction process for recovery of dues from developers was successfully executed. Now, all eyes are on the other 13 districts collectorate, especially Mumbai city and suburbs as developers owe Mumbai homeowners Rs 336 crore.
Further speaking about the auction by the Panvel tehsildar, the official stated that there is a difference between the recovery amount and actual fine levied on the developer. “The amount recovered will be first disbursed to the flat buyers who are awaiting compensation. Other properties of the erring developer will be identified and auctioned to recover the shortfall [difference in the penalty and amount recovered till date],” the official said.
Last week, mid-day had reported that developers owe Mumbai homeowners Rs 336 crore (including Rs 54 crore from the island city and nearly Rs 282 crore from the western and eastern suburbs). Since December, about 700 plus warrants have been issued across 14 districts of the state. Of these, nearly 304 were issued to erring developers in Mumbai city and the suburbs, the highest in the state, followed by Thane with 94 warrants.
In 2022, MahaRERA officials reviewed all complaints it had 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. Accordingly, over 700 warrants were issued for recovery of the pending dues.
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 provisions of the Maharashtra Land Revenue Code, the office of the district collector has the right to recover land revenue arrears.
Once the adjudicating officer issues the recovery warrants, the collector office starts the process to attach the property. If the developer still falls to pay the fine, then the process to auction the property for recovery of dues is initiated.
Subscribe today by clicking the link and stay updated with the latest news!" Click here!
