MahaRERA issues warrants for Rs 633 crore against errant builders

Over the last four years, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has issued recovery warrants worth Rs 633 crore against errant developers, with the suburbs of Mumbai accounting for the highest value. The action, which was carried out in collaboration with 13 collectorates, including those in Mumbai and Pune, involved the issuance of 717 such warrants in order to expedite refunds to flat purchasers.

The suburban area of Mumbai led the pack with 302 such recoveries, followed by Pune (162) and Thane (161). (99). The warrants were issued in connection with 256 projects, 83 of which are in Pune, 63 in Mumbai suburbs, and 41 in Thane. Raigad, Alibaug, Palghar, Mumbai city, Nagpur, Aurangabad, Nashik, Sindhudurg, and Satara are among the other collectorates involved.

According to sources, MahaRERA Chairman Ajoy Mehta has begun discussions with the revenue secretary and district collectors to execute the orders as soon as possible in order to assist homebuyers in recouping their investments. Under the Real Estate (Regulation and Development) Act, adjudicating officers of MahaRERA issue recovery warrants against errant developers. They are forwarded to collectors for property attachment and debt recovery.

MahaRERA Secretary Vasant Prabhu stated that the list of recovery warrants would be posted on the MahaRERA website, and that the collectors would be notified of the warrants’ execution. The collector issues an attachment certificate, after which the property is attached and the developer is given the opportunity to repay the amount. If he fails to do so, the auction process is initiated. However, activists claim that orders are mostly on paper, with no one to carry them out or follow up, leaving citizens in a bind.

One apartment purchaser stated that he has been waiting for the order to be implemented for the past three years without success. “We contacted the officials several times, but they were preoccupied with the Covid-19 work,” he explained. Ramesh Prabhu, Chairman of Maharashtra Societies Welfare Association, stated that if MahaRERA issues a recovery warrant order and the respondent/promoters do not comply, allottees can file a petition for non-execution of the order. “The buyer may wish to withdraw from a project and invest elsewhere. These orders must be carried out in order to instil trust in citizens “Prabhu stated.