A prospective homeowner from Kandivli, who lodged a complaint with the Maharashtra Real Estate Regulatory Authority (MahaRERA) in July 2023, was summoned for a hearing only last month. In a separate case, residents of another Kandivli development are still waiting for their homes, despite the Maharashtra Real Estate Appellate Tribunal (MREAT) instructing the developer in 2022 to finish construction, which was supposed to commence in 2010, within a year and to provide interest to the buyers until they receive possession.
Buyers have claimed that no construction has taken place to date, leaving allottees in a difficult situation. The authority is currently facing a significant backlog, with approximately 7,500 complaints pending.
MahaRERA’s current chairman, Manoj Saunik, is making efforts to expedite the resolution of these complaints by addressing around 200 cases daily. However, the enforcement of orders, including recovery warrants, remains a challenging issue. Legal representatives have noted that developers frequently disregard these orders, and instances of contempt are common, as regulatory bodies fail to utilize their prosecutorial powers to ensure compliance.
The absence of an effective mechanism for the execution of recovery warrants through district collectors continues to hinder the system, forcing home buyers to engage with revenue authorities to reclaim their funds. Furthermore, the conciliation process, which initially showed promise in resolving disputes, has seen a decline in successful resolutions.
Nilesh Gala, an advocate practicing at MahaRERA, emphasized the necessity for systemic reforms. He stated, ‘The transfer of ownership of developer firms or projects has occurred without the consent of two-thirds of the allottees who had engaged with the previous promoters. There are also cases where two MahaRERA registration numbers have been assigned to the same project.’ Gala further asserted that any changes in the shareholding or ownership of developer firms should require prior approval from MahaRERA in the form of a No Objection Certificate (NOC).
Given the backlog of cases, he proposed that promoters be given a 30-day deadline to submit their responses and advocated for an increase in the number of benches at both MahaRERA and MREAT. Nevertheless, he acknowledged that the current chairman is actively working to address the backlog of complaints. ‘An institutional mechanism should be established for MahaRERA to enforce recovery warrants, relieving home buyers of this burden,’ Gala added.
Shirish Deshpande, Chairman of Mumbai Grahak Panchayat, expressed a desire for MahaRERA to reinstate physical or hybrid hearings. He noted a decline in the resolution of complaints through conciliation, stating, ‘Conciliation is a crucial aspect of MahaRERA, initially achieving an 80 to 90 percent success rate when advocates were not involved. However, since advocates were permitted to participate, the success rate has plummeted to merely 30 percent.’
Referring to another problem area in the functioning of MahaRERA, Deshpande said that “MahaRERA does not hear complaints of redevelopment projects. However, the definition of “allottee” in real estate projects covers those who are part of redevelopment or SRA projects.”