Mumbai: Homebuyers seek relief from MahaRera woes

Delayed possession prompts surge in refund complaints, experts weighing Gujarat RERA Model adoption

Flat buyers, aggrieved by delayed possession of their flats and who are flooding MahaRERA with refund complaints, are now raising serious concerns about ineffective order enforcement. Experts debate whether to penalise non-compliant developers or adopt the Gujarat RERA Model.

Despite appointing a retired collector for recovery, MahaRERA’s objectives remain unmet. Litigants have reported fruitless pursuits with MahaRERA orders, and subsequent warrants, but to date, few have received any money, as the recovery and auction of property is handled by the revenue officials under the respective district collectors, after MahaRERA issues warrants.

Numbers speak

Ramesh Prabhu, the founder chairman of Maharashtra Societies Welfare Association (MahaSEWA), mentioned that as of August 31, 2022, MahaRERA had issued 884 warrants under section 40 of RERA, aiming to recover a total of Rs 543.3 crore.

Mumbai city accounted for 33 warrants targeting Rs 78.40 crore, Mumbai suburban had 378 warrants for Rs 247.93 crore, Pune had 163 warrants seeking R108.73 crore, and Thane had 140 warrants for the recovery of Rs 60.02 crore, among others.

Justice delayed 

"MahaRERA's lax recovery process, coupled with revenue officials' other priorities, results in prolonged suffering for litigants. Establishing a dedicated recovery department and amending the land revenue code, akin to GujRERA, is crucial for timely justice," said Prabhu.

Sluggish recovery process

Expressing concern, Advocate Godfrey Pimenta said, “The need for an immediate and robust follow-up mechanism to enforce MahaRERA warrants swiftly, citing alarming delays undermining the regulatory framework and compromising homebuyers' rights and interests is imperative. The delays in this process not only jeopardise the rights and interests of homebuyers but also erode confidence in the regulatory framework.”

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Association reacts

Advocate Anil D’souza, Secretary of the MahaRERA Bar Association, said, “When MahaRERA reports over 15,620 resolved cases, it's essential to note that this figure includes: a) cases settled through conciliation but hindered by builder reluctance to comply with their own consent terms, leading to additional legal complexities like builders cheque bounce and additional legal charges including court fees; b) cases marked as resolved after Maha RERA issues a final order/warrant, initiating a recovery process with subsequent legal hurdles; due to lack of compliance from builders; c) a new phase begins involving allottee advocates navigating government offices for property attachment or auction, a process spanning multiple locations like Mumbai, Thane, Raigad, and Pune."

"The retired Additional Collector, appointed by MahaRERA in December 2022, oversees the process until the warrant is dispatched to the Collector/Tehsildar's office. But what is more important is that MahaRERA needs to ensure the execution of warrants to prevent litigants' frustration with bureaucratic processes,” he added.

“Errant builders should see MahaRERA orders implemented with lightning speed so that current and future orders of MahaRERA are not ignored or under non-compliance by them,” he concluded.

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Litigants speak

Haricharan Yadav, a 72-year-old retired MTNL employee, invested his retirement funds of Rs 22.51 lakh in a Virar (W) project registered with MahaRERA in 2013. Following a December 2020 MahaRERA order and warrant against the developer, Yadav is awaiting a refund of R43 lakh with interest, currently pending action by the Thane Collector. “I wonder when I will get my money back; it has been a long wait,” expressed Yadav.

Vishal Raut, a 45-year-old businessman, received a favourable MahaRERA order in June 2022, instructing a developer to refund over R14 lakh with interest. Despite continuous follow-ups with the Shahpur Tahsildar office, Raut is still awaiting his refund, facing unresponsive developers.

Other side

As of December 15, 2023, MahaRERA issued 1,123 warrants, and by February 20, 2024, 1,214 warrants were issued, recovering Rs 763.66 crore and Rs 932.57 crore from 459 and 488 projects, respectively. The additional collector (retired) assumed charge in December 2022, and significant recovery occurred under his tenure. The process is time-consuming due to legal constraints on auctioning disputed properties, explained a MahaRERA insider, requesting anonymity. 

884
No. of warrants issued by MahaRera

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