INDIA. Mumbai: The Maharashtra Real Estate Regulatory Authority (MahaRERA) has been able to recover Rs 133.56 crore by issuing warrants to the developers, who failed to handover possession of the flats to the buyers, thus causing undue hardships to them.
The MahaRERA issued 1053 warrants in July to recover Rs 627.70 crore from the defaulting developers, with a warning to seal their bank accounts and attach their assets. Of this, an amount of Rs 133.56 crore was recovered against 190 warrants.
Rs 10.93 crore is due to 18 flat buyers whose investment is blocked in 06 projects in Nagpur. Of these, Rs 4.71 crore were recovered from Hagwood Commercial Developers, Nagpur, giving relief to 08 flat buyers, MahaRERA spokesman Ram Dotonde said.
The warrants earlier issued include: Mumbai city- warrants-33, Projects-22, Recoverable amount- Rs 78.40 crore, Mumbai suburban- warrants-383, Projects-99, Recoverable amount- Rs 248.22 crore, Pune- warrants 165, Projects-87, Recoverable amount-Rs. 110.07 crore, Thane- warrants 140, Projects-70, Recoverable amount- Rs. 60.05 crore, Raigad – warrants 53, Projects-28, Recoverable amount- Rs 12.27 crore, Alibaug – warrants 31, Projects-08, Recoverable amount- Rs 5.23 crore, Palghar – warrants 46, Projects-24, Recoverable amount- Rs 14.32 crore, Aurangabad- warrants 09, Projects-02, Recoverable amount- Rs 3.45 crore, Nagpur- warrants 13, Projects-03, Recoverable amount- Rs 7.36 crore, Nashik- warrants 06, Projects-04, Recoverable amount- Rs 4.06 crore, Chandrapur- warrant 01, Project-01, Recoverable amount-Rs 0.09 crore, Sindhudurg- warrants 02, Project-01, Recoverable amount- Rs 0.14 crore, Satara- warrant 01, Project-01, Recoverable amount-Rs 0.12 crore and Ratnagiri- warrant 01, Project,- 01, Recoverable amount-Rs 0.06 crore.
MahaRERA issues recovery orders against developers in cases of default in handing over possession of property to homebuyers. The execution of recovery warrants has to be implemented by the respective district collectors of the location based on the warrant issued by the regulator.
The execution of recovery warrants issued by RERA regulatory authorities across states is facing several issues. As such, MahaRERA is in the process of submitting a proposal to the Central Government for amendments or to improvise the current provisions to make RERA stronger for the execution of recovery warrants.
The Central Advisory Committee (CAC) was set up by the Central government for effective implementation of the real estate law. In a meeting of a sub-committee constituted by the CAC on November 2, 2022, under the chairmanship of the secretary of the Ministry of Housing and Urban Affairs, the need for a mechanism to execute recovery warrants was also discussed.
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