Relief to home buyers: MahaRERA appoints nodal officer to monitor execution of refund orders

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has appointed a retired additional collector to monitor the execution of recovery warrants, providing a much-needed relief to many home buyers who are aggrieved by the delay in getting back their money owing to the developers’ non-compliance with the orders.

Anant Dahiphale, who will operate from the housing regulator’s headquarters in Bandra Kurla Complex, will have to work in coordination with the 13 collectorates in the state. MahaRERA has already written to the collectors of Mumbai, Mumbai Suburban, Pune, Thane, Raigad, Palghar, Aurangabad, Nagpur, Nashik, Chandrapur, Sindhudurg, Satara, and Ratnagiri seeking their cooperation.

MahaRERA chairperson Ajoy Mehta had in August 2021 said that a recovery cell would be set up soon.

Data shows as many as 733 warrants, worth ₹729.68 crore, have been issued in the last five years, but many of them are still stuck in the offices of tehsildar. Mumbai Suburban tops the chart with 330 warrants issued for 75 projects and the total money to be recovered stands at a whopping ₹469.50 crore.

The Bombay High Court recently held the Mumbai Suburban collector and Borivali tehsildar guilty of not obeying its June order directing them to execute a recovery warrant against two developers. The court even threatened to initiate contempt proceedings if they failed to act on the orders. Six home buyers have been waiting since 2019 when MahaRERA ordered Vidhi Realtors and Vijaykamal Properties to refund their money with interest for the delay in possession of flats in Gaurav Discovery project.

Mumbai Grahak Panchayat chairperson Shirish Deshpande has welcomed the move.

“It is a big relief to the consumers. From the complaints and feedback I receive, firstly there is a delay in MahaRERA issuing the recovery warrants. Then there is further delay at the collector’s end because they are busy with other matters and recovery warrants is just one of the many things they have to look after. This new appointment will hopefully speed up the execution of these orders,” he said.

As per the Real Estate (Regulation and Development) Act 2016, home buyers can approach the authority under the Maharashtra Land Recovery Code. MahaRERA issues a recovery warrant and sends it to the collector under whose jurisdiction the home buyer’s project is located. The collector delegates the tehsildar to execute the warrant. The tehsildar serves two show cause notices to the developer to comply with the order, failing which he can attach the property and recover the money through an auction. If the flat is sold in the auction, the money is returned to the home buyer.

With the collectors burdened with administrative tasks, the MahaRERA warrants gather dust at the offices of tehsildar.

Under RERA provisions, the regulator’s orders can be challenged by the affected parties before the Maharashtra Real Estate Appellate Tribunal within 60 days. Even during the appeal period, home buyers can file for non-execution unless the tribunal stays the process. The tribunal takes months to schedule and complete a hearing. After it issues its verdict, the parties can approach the Bombay High Court in second appeal.