MahaRERA to regulate real estate sector, has recovered only 34 per cent of the total R792 cr recovery dues from errant developers
The Maharashtra Real Estate Regulatory Authority office. File pic
The state government has announced a special recovery drive against defaulting builders which could give major relief to thousands of homebuyers awaiting refunds. The move comes after it was observed that the Maharashtra Real Estate Regulatory Authority (MahaRERA) has recovered only 34 per cent of the total Rs 792 crore recovery dues from errant developers.
In his reply in the Assembly on Thursday, on behalf of Urban Development Minister Eknath Shinde, Cabinet Minister Shambhuraj Desai assured that the recovery process would be expedited and stricter action would be taken against defaulters.
MLA questions
BJP MLA Atul Bhatkhalkar. Pic/X/@Bhatkhalkara
BJP MLA Atul Bhatkhalkar raised concerns over MahaRERA’s functioning, alleging, “MahaRERA feels like an extension counter of the developer.” Highlighting huge pendency in recovered cases from the erring developers, Bhatkalkar demanded a regular performance audit of the authority to ensure accountability.
Minister gives assurance
Maharashtra Minister Shambhuraj Desai. Pic/X/@shambhuraj desai
Cabinet Minister Shambhuraj Desai said, “The current recovery rate is 34 per cent. We will conduct a special drive in districts where recovery from defaulting developers is low and work to improve this percentage.” Desai mentioned that information about defaulters is being sought from transport, revenue, and other concerned departments. “If required, the government will seek assistance from the Income Tax Department to trace accounts, assets, and other information of developers who have failed to comply with the recovery order,” he said.
Why does RERA matter?
The Real Estate (Regulation and Development) Act, commonly known as RERA, a Central law, was introduced in May 2017 to bring transparency and accountability to the real estate sector. The law was introduced after years of complaints about delayed housing projects, misleading advertisements, and broken promises by developers. In Maharashtra, it is known as MahaRERA.
. Recovery order of more than Rs 792 crore issued.
. Rs 279 crore recovered through the revenue recovery process
. Rs 103 crore cases pending before the NCLT
. Rs 430.66 crore recovery still pending
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