A collective compensation of Rs 717 crore is yet to be paid to home buyers who have been cheated in various housing projects across Maharashtra. Builders and developers have not only delayed flat possession but have also turned a blind eye to compensation orders issued by MahaRERA, the real estate regulator.
As per norms, if a developer fails to compensate aggrieved homebuyers even after orders from MahaRERA, a recovery warrant is issued by the revenue department. The warrant is sent to respective collectors, with a provision of attachment and subsequent auction of developer’s properties.
Since the inception of MahaRERA in 2017, 751 such warrants have been issued to recover Rs 717 crore in compensation. However, these warrants are stuck in a limbo at 14 collectors’ offices across the state, as the district head executes the auction process.
Suburban Mumbai tops the chart with 316 warrants against 71 projects valued at Rs 461 crore, followed by Pune with 160 warrants against 84 projects and Thane with 115 warrants against 59 projects.
Another 43 warrants are languishing with the Raigad collector’s office, which has taken up 12 warrants issued since December 2021. However, no properties of the erring developers have so far gone under the hammer.
Notably, all the 11 warrants have been issued against the Belapur-based Shadow Builders and Developers for recovery of interest, compensation and fine payable under the Real Estate Regulation and Development Act.
Passed by MahaRERA secretary, Dr Vasant Prabhu, these warrants were issued after the aforementioned builder “failed to abide by the compensation orders”, said a MahaRERA official, adding that they are waiting for feedback from the collector’s office.
MahaRERA officials claimed that talks with the revenue department and collectors to execute orders and help home buyers get back their investments is being held regularly.
Cheated buyers complained that despite recovery warrant orders, their non-execution has adversely affected MahaRERA's authority.
“If there are arrears despite attaching the property mentioned in the orders, the other movable and immovable properties of the defaulters should be attached and auctioned, failing which the debtor be sent to jail for three months,” reads the MahaRERA order against the erring developer.
Shantanu Kuchya from RERA Easy, a RERA Expert and real estate consultant, said that people will lose faith in judiciary if the MahaRERA orders aren’t executed in a timely manner.
