The RERA Act mandates that MahaRERA provide a forum for consumer or promoter associations to establish dispute resolution to promote the peaceful resolution of conflicts between developers and homebuyers.
The success rate of MahaRERA’s conciliations in settling disputes between real estate developers and homebuyers was 35 to 50 percent. Data given to MahaRERA indicates that approximately half of them proceed with hearings following the failure of conciliation.
According to MahaRERA’s data, since the conciliation forum’s establishment in 2018, the organization has handled over 1,200 cases.
“The conciliation process is going well, with a 35-50% sensation. As things are closed, it is much faster, and there are no more appeals. We do handle cases that go back to us. Ajoy Mehta, Chairman of MahaRERA, told Moneycontrol 50% of the cases, which is a respectable rate.
Of the 1,231 conciliation cases handled, 1,061 have been settled, and 170 are still pending. However, according to MahaRERA, the success rate of conciliation is between 35% and 50%.
Conciliation forum
As per the Real Estate (Regulation and Development) Act, 2016, Section 32 (g), MahaRERA must allow developers and homebuyers to settle their disputes amicably using dispute resolution forums established by the promoter or consumer associations.
The forum consists of promoters’ association representatives from Mumbai Grahak Panchayat. This forum handles disputes between developers and homebuyers resulting from the RERA Act.
It occurs following the buyer’s registration with the conciliation forum. The MahaRERA conciliation forum holds hearings after the developers approve the request to resolve conflicts.
Homebuyers can file a complaint with MahaRERA if the developers refuse to participate in conciliation. If a developer or homebuyer fails to comply with the terms of the agreement reached at the conciliation forum, the aggrieved party may choose to complain with MahaRERA.
Grievances
The MahaRERA has received 24,379 complaints from homebuyers against developers, or vice versa; orders have been in more than 16,474 cases from Maharashtra.
Ways to raise the rate of success?
Members of the conciliation forum assert that party-centricity is the cornerstone of any mediation or conciliation process, and the success rate will only rise when all parties involved approach the process with a settlement mindset.
“A conciliator functions as a mediator, and for there to be a settlement, all parties must cooperate. According to Hitesh Thakkar, a partner at Prem Group and conciliator of the MahaRERA conciliator forum on behalf of NAREDCO, the apex body of developers, “the hearings at the forum do not happen on merits, and all concerned parties have to come with that mindset considering the success of conciliation is also depending on that.”