Regarding MahaRERA’s decision to establish a forum to resolve builder-buyer disputes, FPCE writes to the center of inquiry.

NEW DELHI: The Forum for People’s Collective Efforts (FPCE), an association representing homebuyers, has raised concerns over the Maharashtra Real Estate Regulatory Authority’s (MahaRERA) recent decision to establish and participate in a conciliation forum aimed at resolving disputes between builders and customers. FPCE argues that this move may overstep the authority’s legal powers and potentially create a conflict of interest.

On August 19, FPCE President Abhay Upadhyay addressed a letter to Satinder Pal Singh, Additional Secretary of the Union Ministry of Housing and Urban Affairs, expressing objections to MahaRERA’s conciliation forum. The letter calls into question the forum’s legitimacy and raises concerns about its “suspicious functioning.”

FPCE has urged the ministry to conduct a thorough investigation into the constitution and operations of this forum and the rulings it has issued to determine whether it exhibits favoritism towards builders.

“Maharashtra Real Estate Regulatory Authority (MahaRERA) has constituted a Conciliation Forum for the amicable settlement of disputes between real estate project promoters and allottees under Section 32 of the Real Estate (Regulation and Development) Act, 2016 (RERA),” Upadhyay stated. However, he pointed out that Section 32 of RERA merely grants the authority the power to make recommendations, not to establish such a forum independently.

FPCE has suggested that the ministry develop guidelines for establishing and functioning conciliation forums, in consultation with all relevant stakeholders.

“It is essential to ensure that any conciliation forum established is independent, uniform, and composed of impartial individuals of good repute, selected through a clear and fair process,” Upadhyay emphasized.

The FPCE also stressed the importance of keeping RERA authorities separate from these conciliation forums to prevent any potential conflicts of interest. The association further proposed that states with functioning Lok Adalats should prioritize these over the formation of new conciliation forums.

“In light of the serious allegations surrounding the MahaRERA conciliation forum, we respectfully request that your Ministry investigate its constitution, functioning, and the orders it has passed to ascertain whether the forum’s actions favor builders,” the association urged.

FPCE also recommended that the ministry instruct all state RERA authorities to suspend the operation of any conciliation forums until detailed guidelines are issued by the Union ministry.

FPCE claimed that MahaRERA has overstepped its legal mandate under the Act, creating potential conflicts of interest. “It is clear that this move has been made under the influence of, and to benefit, builders, which is evident from the composition of MahaRERA’s Conciliation Forum,” FPCE stated.

The association noted that the forum’s membership includes only one organization representing consumers, compared to three organizations representing builders.

Furthermore, the forum comprises just two individual consumer representatives, compared to six individual representatives for builders, indicating a bias in favor of builders, FPCE asserted in the letter.