Homebuyers facing delays in their projects due to insolvency proceedings are encountering obstacles as MahaRERA has stopped hearing complaints when projects enter National Company Law Tribunal (NCLT) proceedings. Once MahaRERA is informed that insolvency proceedings have been initiated, the authority halts hearing complaints and adjourns these cases until the NCLT resolution is completed.
In a recent order, MahaRERA stated that since the NCLT proceedings were ongoing, it could not adjudicate the complaints and directed the resolution professional to accept claims from the homebuyers.
Legal experts have raised concerns over MahaRERA’s practice of halting hearings when insolvency proceedings begin. They argue that the Insolvency Resolution Professional (IRP) appointed for the project should continue to be responsible for delivering homes to the buyers who have already paid for them. There is no law preventing MahaRERA from continuing to hear complaints or providing relief to homebuyers despite the insolvency proceedings.
In situations where a bank issues an NOC for the sale of a flat, homebuyers gain third-party rights, which the IRP cannot disregard. However, MahaRERA’s decision to stop hearings has left many buyers in limbo, waiting for years without resolution.
Currently, there are numerous projects under NCLT proceedings, with many also having complaints pending before MahaRERA. Homebuyers, who were expecting relief from MahaRERA, now face delays and confusion as their cases are adjourned indefinitely.
Homebuyers can file claims with the IRP, but this often results in minimal relief and long delays, as large creditors take precedence over the claims of individual buyers. This situation leaves homebuyers with no clear path forward.
Experts believe the government should intervene and engage all stakeholders to ensure a fair solution for homebuyers, preventing them from being left in a prolonged and unfair limbo during insolvency proceedings.