MahaRERA Conciliation Forum Achieves 35-50% Success Rate
The Real Estate (Regulation and Development) Act, 2016, mandates that MahaRERA establish a platform for consumer or promoter associations to facilitate dispute resolution. This process strives to promote the amicable settlement of disagreements between real estate developers and homebuyers. MahaRERA's conciliation efforts have yielded a success rate of 35% to 50% in resolving these disputes. Data provided to MahaRERA reveals that roughly half of the cases proceed to hearings after conciliation attempts fail.
Conciliation Forum Statistics
According to MahaRERA's data, the organization has addressed over 1,200 cases since the conciliation forum's inception in 2018. Out of 1,231 conciliation cases handled, 1,061 have been resolved, while 170 remain pending.
"The conciliation process is progressing effectively, demonstrating a 35-50% success rate. This method is significantly faster because matters are concluded without further appeals. We also address cases that are returned to us.", Ajoy Mehta, Chairman of MahaRERA, informed Moneycontrol. "50% of cases that return to us are still resolved, representing a decent success rate."
Conciliation Forum Structure and Process
Section 32(g) of the Real Estate (Regulation and Development) Act, 2016, stipulates that MahaRERA must provide developers and homebuyers with a mechanism to resolve disputes amicably through platforms established by promoter or consumer organizations. The forum comprises representatives from promoters' associations and the Mumbai Grahak Panchayat. This forum handles disputes arising between developers and homebuyers under the purview of the RERA Act.
The process begins with the buyer registering with the conciliation forum. Once the developers agree to the request for conflict resolution, the MahaRERA conciliation forum conducts hearings. If developers decline to participate in conciliation, homebuyers can lodge a complaint with MahaRERA. Should a developer or homebuyer fail to adhere to the terms of the agreement reached at the conciliation forum, the affected party can also file a complaint with MahaRERA.
Overall Grievances and Improving Success Rates
MahaRERA has received 24,379 complaints from homebuyers against developers, and vice-versa, leading to orders being issued in over 16,474 cases across Maharashtra.
Members of the conciliation forum emphasize that a focus on the involved individuals is crucial for successful mediation or conciliation. The success rate is expected to increase only when all participants approach the process with a mindset geared towards settlement. "A conciliator acts as a mediator, and a settlement requires cooperation from all parties involved. The forum's hearings don't focus on the specific details of cases, and all parties involved need to approach the process with a mindset of resolution considering that the success of the conciliation also hinges on this approach.", explained Hitesh Thakkar, a partner at Prem Group and conciliator of the MahaRERA conciliator forum on behalf of NAREDCO, the apex body for real estate developers.