MahaRERA Makers Developers Bank Details Mandatory In Recovery Warrants
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has decided to make it mandatory for real estate developers to include their bank account details in the recovery warrants forwarded to the revenue department to enhance the efficiency of compensation recovery processes. This strategic measure is expected to alleviate the financial burden on homebuyers who have faced delays or discrepancies in their property transactions, the authority said. The move will help streamline identification and attachment of property developers' bank accounts by the revenue department, facilitating the retrieval of their owed compensation. By mandating the disclosure of developers' bank account information, MahaRERA said it aims to bolster accountability and ensure timely restitution for affected parties within the real estate sector. The move assumes significance in the backdrop of homebuyers across the country raising concerns regarding non-compliance or delay in enforcement of recovery orders issued by the authorities against defaulting developers. MahaRERA has recovered over Rs 125 crore from defaulting property developers as compensation for homebuyers in the last 14 months. This takes the total recovery by the real estate regulator to over Rs 160 crore and makes it the only regulator in the country to recover quantum of such dues. In January 2023, MahaRERA had appointed a retired additional collector to recover compensation on behalf of troubled homebuyers. The regulator has so far recovered nearly Rs 160 crore linked with 237 complaints in 117 real estate projects. It has issued 1,095 warrants seeking to recover a total Rs 661.15 crore. From across the state, the highest number of warrants were issued to developers of projects in the suburban Mumbai district. A total of 434 warrants from 114 projects have been issued to recover Rs 298 crore. So far, Rs 71.06 crore has been recovered through 75 warrants related to 40 projects. Pune is the second highest with 239 warrants to recover Rs 181.49 crore from 123 projects. Out of these, 55 warrants worth Rs 38.90 crore from 35 projects have been recovered, the authority said. When misconduct is suspected, the regulator conducts thorough hearings involving all relevant parties and subsequently issues directives to developers to reimburse or refund the required amount, including interest, within a specified timeframe. When the developer fails to comply with these orders and defaults on compensation payments, the intervention of the district collector's office is required to ensure the retrieval of the outstanding sum. Under Section 40(1) of the Immovable Property (Regulation and Development) Act, 2016 and provisions of Maharashtra Land Revenue Act, the collector's office has the power to recover the arrears. Hence, the recovery warrants are sent to the concerned collectors' office.
Tags : Maharashtra Real Estate Regulatory Authority bank account information Maharashtra Land Revenue Act homebuyers.