The Maharashtra Real Estate Regulatory Authority (MahaRERA) has recovered a record amount of INR 125 crores in compensation payments for homebuyers across the state over just 14 months. This makes MahaRERA the most effective real estate regulator in India in recovering amounts owed to homebuyers in a short time period. To further strengthen its recovery efforts, MahaRERA will now include developers' bank account details in warrants issued to the Revenue Department, allowing them to directly debit owed compensation amounts. These focused efforts have led to MahaRERA recovering amounts related to 237 complaints in 117 projects, with INR 125 crores recovered just in 2023. MahaRERA aims to further strengthen its recovery system to better serve homebuyers.
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has successfully recovered INR 125 crores in compensation for homebuyers over the past 14 months. This makes MahaRERA the only real estate regulator in India to achieve such a high recovery amount in such a short period of time.
In total, MahaRERA has now recovered INR 160 crores in compensation payments for homebuyers across the state. To further strengthen recovery efforts, MahaRERA will now include developers' bank account details in the warrants issued to the Revenue Department. This will allow the department to directly attach the bank account of the developer to collect owed compensation.
In January 2023, MahaRERA had appointed a retired Additional Collector to recover compensation on behalf of homebuyers. He coordinates closely with collectors, deputy collectors, tehsildars and talathis across Maharashtra's districts. MahaRERA says that it gives top priority to the recovery exercise and the progress is reviewed in each of the department head meetings.
Due to these focused efforts, MahaRERA has so far recovered INR 159.1 crore related to 237 complaints in 117 projects. Of this, INR 125 crore was recovered in 2023. So far, MahaRERA has issued 1,095 warrants to recover INR 661.15 crore.
The highest recoveries came from the suburban Mumbai district, with INR 71.06 crore collected through 75 warrants for 40 projects. A total of 434 warrants from 114 projects were issued to recover INR 298 crore in the Mumbai suburban area.
Pune had the second highest recovery of INR 38.9 crore from 35 projects. It had issued 239 warrants to recover INR 181.49 crore from 123 projects. Thane region issued a total of 174 warrants from 77 projects to recover INR 58.7 crore, of which INR 4.73 crore was recovered through 7 warrants through 8 projects.
In case of any wrongdoing, and after conducting hearings involving the opposing parties, the MahaRERA orders developers to compensate or refund the sum with interest within a prescribed timeframe.
When developers fail to comply with MahaRERA orders to pay compensation or refunds, the collector's office steps in using their legal powers to forcibly recover the amounts. Under Section 40(1) of the Immovable Property (Regulation and Development) Act, 2016 and provisions of Maharashtra Land Revenue Act, the Collector's office has the power to recover the arrears. Hence, the recovery warrants are sent to the concerned Collectors office.
MahaRERA is committed to strengthening this recovery system to better serve homebuyers. Through most of these measures, MahaRERA is trying its best to ensure effective implementation of orders it passes.
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