The Maharashtra Real Estate Regulatory Authority (MahaRERA) is set to auction off the assets of N K Bhupeshbabu, a Navi Mumbai builder to compensate aggrieved homebuyers. The authority hopes to recover over six crore rupees through this auction, which will be conducted by the Raigad district authorities. The builder owes more than fifteen crore rupees in unpaid dues.
In order to recover over Rs 6.8 crore, the Panvel tehsildar's office is set to auction off the assets of a Navi Mumbai builder. The Raigad district has received recovery orders from the Maharashtra Real Estate Regulatory Authority (MahaRERA) for an amount of more than Rs 15 crore. When promoters fail to pay the interest, refund, or compensation that MahaRERA has imposed, recovery orders are issued. The authority has started evaluating the warrants and has reminded the state's 13 district collectorates of the problem.
MahaRERA had issued warrants in 74 cases to recover Rs 15.1 crore that was owed to Raigad district homebuyers in compensation. In order to recover around Rs 6.8 crore the Panvel Tehsildar's Office has announced an auction of many properties owned by N K Bhupeshbabu, the proprietor of Enkay Garden.
The offices of the 13 district collectorates in the state have received a reminder to assist in the recovery of occasionally issued warrants, according to MahaRERA authorities. According to a press release from MahaRERA, home buyers can file complaints with the organisation when promoters and developers fail to complete projects on time, abandon them midway through or fail to maintain the required level of quality.
The promoters and developers are required to pay interest, compensation, or a refund once the authority holds a hearing to address these objections. Recovery warrants are issued through the district collector's office which recovers the money if the developer fails to pay it. If a promoter, an allottee or a real estate agency fails to pay up it will be recovered as arrears of land revenue under Section 40 of the Real Estate (Regulation and Development) Act, 2016 which governs the recovery of interest, penalty or compensation.
According to the guidelines in the Maharashtra Land Revenue Code, the district collector's office has the authority to recover unpaid land taxes. As a result, the MahaRERA sends warrants to the district collectors' offices. The recovery process is then carried out by the district collector's office and revenue officials using an auction of the developers' properties.
"Home buyers regularly criticise the district collectors' agencies for taking too long to initiate recovery proceedings. MahaRERA’ s only function is to issue recovery warrants, but we are currently pursuing this with the district collectors' offices to make sure that the home buyers receive their money back " explained a MahaRERA official.
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