In recent years, the real estate sector in India has witnessed significant regulatory reforms aimed at protecting the interests of homebuyers and ensuring transparency in the industry. One such crucial development is the enactment of the Real Estate (Regulation and Development) Act, 2016 (the Act), by the Government of India. This comprehensive legislation has been instrumental in bringing accountability and efficiency to the real estate sector. In the state of Maharashtra, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has been established to enforce the provisions of the Act and safeguard the rights of homebuyers and real estate agents.
Case Number: MaiaRERA/Secy /FtleNo.27 / q /2023
Date: 9th June 2023
In a recent matter concerning the execution of warrants issued by the Maharashtra Real Estate Regulatory Authority, MahaRERA has issued Circular No. 14/2023 to ensure the timely and effective recovery of interest, penalties, and compensations imposed on promoters, allottees, and real estate agents who fail to fulfill their obligations under the Act and its associated rules and regulations.
The Act, which came into force on 1st May 2017, empowers MahaRERA to impose penalties, interest, and compensation on non-compliant promoters, allottees, and real estate agents. Section 40 of the Act specifically states that in cases of non-payment, these dues shall be recoverable as arrears of land revenue. To facilitate the recovery process, the Maharashtra Real Estate (Regulation and Development) (Recovery of Interest, Penalty, Compensation, Line Payable, Forms of Complaint and Appeal, etc.) Rules, 2017, were notified.
Execution of Warrants:
Under Rule 3 of the aforementioned rules, MahaRERA has the authority to recover the outstanding amounts from defaulting parties in the same manner as land revenue recovery is conducted under the Maharashtra Land Revenue Code, 1966 (Mah. XLI of 1966). Additionally, MahaRERA's Chairperson is entrusted with the powers of general superintendence and directions in the conduct of MahaRERA's affairs, as per Section 25 of the Act.
Standard Operating Procedure:
To ensure expeditious and effective execution of warrants, MahaRERA has emphasized the need to follow the Standard Operating Procedure prescribed by the Revenue and Forest Department of the Government of Maharashtra. This procedure, detailed in circulars, outlines the specific steps and guidelines to be followed by the respective Collectors' offices in recovering the outstanding amounts.
Quarterly Compliance Reporting:
To monitor the progress and status of warrant execution, MahaRERA has mandated that the Collectors and their offices submit a quarterly compliance report. This report should include the current status and level of execution of warrants issued by MahaRERA. By closely monitoring the compliance with warrant execution, MahaRERA aims to achieve its objectives of speedy dispute redressal and ensuring compliance with the Authority's regulations, orders, and directions under the Act.
The issuance of Circular No. 14/2023 by MahaRERA marks another significant step towards ensuring the effective recovery of outstanding amounts from defaulting parties in the real estate sector. By aligning with the Standard Operating Procedure established by the Revenue and Forest Department, MahaRERA aims to expedite the execution of warrants and promote accountability within the industry. The quarterly compliance reporting further enhances transparency and allows for better monitoring of the progress made in recovering the dues.
In its relentless pursuit of protecting the interests of homebuyers and promoting a fair and transparent real estate market, MahaRERA continues to demonstrate its commitment to enforce the provisions of the Act and deliver justice to all stakeholders involved.
Note: The information provided in this article about Maharashtra Real Estate Regulatory Authority (MahaRERA) is for informational purposes only. It is not intended as legal or professional advice and readers should consult qualified professionals for advice specific to their circumstances. The information provided in this article is based on MaiaRERA/Secy /FtleNo.27 / q /2023 before the Maharashtra Real Estate Regulatory Authority
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