Read what the Mr. Ajoy Mehta has to say on key issues of RERA like recovery warrants, notices & grading of developers.
In a recent interview of Mr. Ajoy Mehta (Chairman MahaRERA) with Moneycontrol, gave inputs on several key aspects of Real Estate Regulatory Act, 2016 (RERA) and how it will shape in the future.
Recovery Warrants
He said that the Central Advisory Committee of RERA (CAC) is reportedly considering strengthening the Real Estate Regulatory Act (RERA), 2016, through an amendment to improve the process of executing recovery warrants issued to developers who fail to deliver homes to buyers. Recovery warrants are issued by the regulator to collectors, who are tasked with attaching the property of defaulting developers to auction and recover dues.
A sub-committee constituted by the Central Advisory Council had expressed the need for a mechanism to execute recovery warrants at a meeting in November 2022. The recovery rate in Maharashtra, according to the Maharashtra Real Estate Regulatory Authority (MahaRERA), stands at 20-30% out of Rs 625 crore worth of recovery warrants issued.
Non-compliance to Developers
Mehta's approach of issuing non-compliance notices to developers is aimed at ensuring transparency and accountability in the real estate sector. The notices serve as a warning to developers who fail to provide details about their projects, including financial aspects. Mehta clarified that the notices are not meant to punish or penalize developers but to encourage compliance and expedite the completion of projects. Ultimately, the goal is to protect the interests of homebuyers and ensure that they receive possession of their properties as per their agreements with developers. By holding developers accountable, Mehta hopes to bring about a positive change in the real estate sector, where transparency and accountability have often been lacking.
RERA compliance in non-urban areas
MahaRERA is focusing on increasing awareness of RERA compliance in smaller cities and towns in the state, as more than 50% of project registrations and complaints come from the Mumbai Metropolitan Region. “We are trying to ensure penetration of RERA compliance in tier two cities and tier three towns and ensure RERA does not remain a Mumbai and Pune thing. We are getting registrations and complaints from small towns and this is proof that the compliance level is increasing,” said MahaRERA Chairman, Dilipkumar Khandelwal.
Rating of Real Estate Developers
The concept of grading real estate developers and their projects is gaining traction in the industry. The Bombay High Court recently asked the Maharashtra government whether MahaRERA could classify developers to help homebuyers make informed decisions. While legal experts say that grading is possible under the RERA Act, MahaRERA chief Gautam Chatterjee refrained from commenting on the matter as it is sub judice. Nonetheless, the idea of grading developers and projects could provide greater transparency and accountability in the real estate sector.
Overall, MahaRERA's efforts to increase awareness and ensure compliance with RERA regulations are aimed at providing a more transparent and reliable real estate market for homebuyers across the state of Maharashtra.
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