In recent years, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has been seen as a vital mechanism for safeguarding homebuyers' interests, offering them a platform to seek justice and resolution in disputes with developers. However, with over 8,000 complaints currently pending, many homebuyers are finding it increasingly difficult to get the relief they expected from the regulator. Experts believe that the system is struggling under the weight of its workload and needs significant reforms to improve efficiency and execution.
Challenges Faced by Homebuyers and Delayed Resolutions
A key concern among homebuyers is the significant delay in resolving their grievances. One such case involves Sumeet Mehta, a Goregaon resident who has been waiting since January 2024 for the execution of a MahaRERA order that mandates a developer to sign an agreement for sale. Despite paying up to 75% of the total cost, Mehta's issue remains unresolved. The order also included a penalty for non-compliance, which is still pending collection. This delay highlights the broader issue: While MahaRERA issues orders, the execution of these orders is often stalled, leaving homebuyers without the much-needed relief.
In some instances, the regulator has directed developers to execute registered agreements for sale and compensate homebuyers for delayed possession. However, enforcement has proven problematic. One particular case was transferred to a district judge after the developer disregarded the order. In several complaints, hearings have been delayed by over two years, and cases can take years to even be heard, much less resolved.
A Strained System: MahaRERA's Limited Capacity
MahaRERA is grappling with a backlog of cases, and experts suggest that its current structure is insufficient to meet the growing demand for intervention. According to Ramesh Prabhu, a representative for homebuyers at MahaRERA, many complaints that were filed in 2021 and 2022 are still awaiting hearings. The authority’s limited number of members exacerbates the issue, as only a few officials are available to handle the large volume of complaints. However, there is some hope on the horizon. The current MahaRERA Chairman, Manoj Saunik, is pushing for faster case disposal, and a record number of cases were heard in a recent session.
To address this, experts believe that the Maharashtra government should consider increasing the number of MahaRERA members. Additionally, establishing a more efficient system to expedite the handling of complaints could help clear the mounting backlog. Given the growing real estate challenges, this is a pressing concern that demands immediate attention.
Execution Woes: A Long Road to Justice for Homebuyers
Even when MahaRERA issues orders, their execution remains a challenge. A notable area of concern is the execution of recovery warrants. MahaRERA has issued recovery warrants worth over Rs 771 crore to reclaim homebuyers' money from developers who have failed to pay compensation, interest, or refunds within the prescribed time limits. However, these recovery warrants, which are supposed to be enforced by revenue authorities, remain largely unexecuted. Legal experts argue that the delay in executing these orders is due to a lack of action or interest from the authorities. In one particularly troubling case, over 80-year-old Arun Sheth has been waiting for the recovery of Rs 78 lakh for six years, despite a recovery warrant being issued in 2019.
While MahaRERA claims its role is limited to issuing recovery warrants, it has taken steps to address the issue. The authority has appointed an additional collector and is working with retired tehsildars to follow up with revenue authorities to ensure enforcement of the warrants. However, despite these efforts, the execution of orders remains a significant bottleneck.
Comparing MahaRERA with the Consumer Protection Act
The growing challenges within MahaRERA have prompted comparisons with the Consumer Protection Act, which provides for stricter penalties for non-compliance. Under the Act, penalties for non-compliance can include fines ranging from Rs 25,000 to Rs 10 lakh and imprisonment of up to one month. In one recent case, a district consumer commission sentenced a builder to three years of imprisonment for contempt of its 2019 order, in addition to imposing a fine. This highlights a contrast in the power of enforcement between the two systems.
The Need for Reform: Enhancing MahaRERA's Effectiveness
Despite the challenges, MahaRERA still plays an essential role in regulating the real estate sector and protecting the rights of homebuyers. However, for the authority to live up to its potential, several reforms are necessary. First and foremost, increasing the number of members and improving case disposal mechanisms is critical to reducing the backlog of complaints. Additionally, ensuring that orders are enforced promptly and that recovery warrants are executed without delay will significantly boost the credibility of the regulator.
Furthermore, it would be beneficial for MahaRERA to strengthen its enforcement powers, similar to the more stringent penalties found in the Consumer Protection Act. This would send a clear message to developers that non-compliance will not be tolerated and that the regulator has the authority to take swift and decisive action.
Conclusion
MahaRERA was established with the promise of protecting homebuyers and ensuring a fair and transparent real estate market in Maharashtra. However, with a growing backlog of complaints, delayed hearings, and poor execution of orders, the authority’s effectiveness has been called into question. While steps are being taken to address these issues, significant reforms are needed to make MahaRERA a more powerful and efficient force in the real estate sector. Only then can it truly fulfill its mission of providing timely and effective justice to homebuyers across the state.