Over the past four years, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has issued takeover orders of Rs 633 crore against misleading developers, with Mumbai’s suburbs bearing the greatest value. Action taken in coordination with 13 debt collection agencies, including those in Mumbai and Pune, included 717 such requests to expedite refunds to flat buyers.
The Mumbai suburb leads with 302 such recoveries, followed by Pune (162) and Thane (99). Warrants have been issued for 256 projects, of which 83 are in Pune, 63 in the suburb of Mumbai and 41 in Thane. Other collections involved include Raigad, Alibaug, Aurangabad, Palgar, Mumbai City, Nagpur, Satara, Nashik, and Sindhudurg.
According to sources, MahaRERA chairman Ajoy Mehta has initiated talks with the revenue secretary and district collectors to execute orders as soon as possible to help home buyers get their investment back. Under the Real Estate (Regulation and Development) Act, the adjudicating officers of MahaRERA issue recovery warrants against misleading developers. They are sent to collectors to confiscate property and recovery of dues.
Details of recovery warrants
MahARERA Secretary Vasant Prabhu said he would publish a list of recovery order details on the MahARERA website. Collectors are notified when arrest warrants are executed. The recovery process involves the collector issuing an attachment certificate. The property then confiscated and the developer has the option to repay the amount. Failure of repayment, follow the auction process. But activists say the orders are mostly on paper and that no one is following them and not executing them, leaving citizens in battle.
Maharashtra Societies Welfare Association Chairman, Ramesh Prabhu said, when MahaRERA issues a debt collection order and the defendant / organizer fails to comply, the recipients can file a request for non-execution of the order. The buyer may want to leave the project and invest elsewhere. These orders need to followed to build the trust of the citizens
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