Over the last four years, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has taken significant action against deceitful developers, issuing recovery warrants totaling Rs 633 crore. Mumbai's suburban areas represent the largest portion of this amount. Working in conjunction with 13 debt collection agencies across Mumbai and Pune, MahaRERA has initiated 717 recovery requests to facilitate refunds for apartment purchasers.
Regional Breakdown of Recovery Efforts
Mumbai suburbs lead with 302 recovery attempts, followed by Pune with 162 and Thane with 99. Warrants have been issued for a total of 256 projects. Of these, 83 are situated in Pune, 63 in Mumbai's suburbs, and 41 in Thane. Recovery efforts also extend to other regions, including Raigad, Alibaug, Aurangabad, Palghar, Mumbai City, Nagpur, Satara, Nashik, and Sindhudurg.
Expediting the Recovery Process
MahaRERA chairman Ajoy Mehta has reportedly opened discussions with the revenue secretary and district collectors to expedite the execution of these warrants, prioritizing the return of homebuyers' investments. The Real Estate (Regulation and Development) Act empowers MahaRERA's adjudicating officers to issue these recovery warrants against developers engaging in misleading practices. These warrants are then forwarded to collectors, who are responsible for seizing the developers' properties and recovering the owed funds.
Details of Recovery Warrants and Challenges
MahARERA Secretary Vasant Prabhu stated that details regarding the recovery orders will be published on the MahARERA website. Collectors are to be notified upon execution of these warrants. The recovery procedure entails the collector issuing an attachment certificate, followed by property seizure. Developers are given an opportunity to repay the outstanding amount, failing which, an auction process is initiated. However, housing activists contend that these orders largely remain unexecuted, trapping homebuyers in protracted legal struggles.
Concerns and Calls for Action
Maharashtra Societies Welfare Association Chairman Ramesh Prabhu highlighted the plight of homebuyers. He explained that when MahaRERA issues a debt collection order, if the defendant/builder fails to comply, the affected homebuyers can file a request for non-execution of the order. The buyer might even choose to abandon the project and seek other investment opportunities. According to Prabhu, enforcing these orders is crucial to maintaining public trust.
"when MahaRERA issues a debt collection order and the defendant / organizer fails to comply, the recipients can file a request for non-execution of the order. The buyer may want to leave the project and invest elsewhere. These orders need to followed to build the trust of the citizens"
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