Mumbai: The Cooperative Societies Residents Users and Welfare Association (CSRUWA) has raised a flag against Maharashtra Real Estate Regulatory Authority (MahaRERA) stating that the regulator is going soft on thousands of errant builders who repeatedly are violating various rules.
According to the association, the regulator also ensures that the brand image of the erring developers remains unaffected by not revealing their names, which puts homebuyers at risk.
Purchasers shaken by flouting of laws and blatant violations of MahaRERA
President CSRUWA Advocate Vinod C Sampat said, “Faith of thousands of flat purchasers is shaken in view of flouting of laws and blatant violations of MahaRERA, specifically with regards to the investment of funds in separate bank accounts of 1,781 developers.”
The law stipulates that the developer has to maintain an escrow account to deposit 70% of the amount received from the buyers, without creating any third-party rights on it. Yet 1,781 realtors have not complied with the law.
Secondly, over 5,700 projects worth Rs1,13,023 crore in Maharashtra have lapsed. In these projects, 4,08,350 apartments were booked, putting the home buyers in a quandary.
16,000 show-cause notices sent to developers
This month over 16,000 show-cause notices have been sent for the second time to the developers who did not respond to the one sent in January. Of the around 19,500 developers only about 18% or 3,500 acted on the legal communication issued by MahaRERA.
There are also 261 projects wherein less than 40% of work has been achieved and the promoters are about to run out of money or have given unrealistic possession deadlines of December 2023.
In another instance, 14 builders had advertised their projects without the mandatory MahaRERA registration number.
The association demands that such law-violating promoters, developers, as well as auditors, should be blacklisted and they should be penalised 5% of the project cost.
Crores of rupees of buyers at stake
“Several crores of Rupees of buyers is at stake in the realty projects. The flat purchasers look upon MahaRERA authorities to protect their interest. Unfortunately, the faith of the flat purchaser is shaken in view of the builder’s lobby openly flouting the laws, particularly laws related to MahaRERA,” added advocate Sampat.
Moreover, even the orders in favour of the home purchasers given by MahaRERA are often not honoured by the developers.
In view of such gross violations that continue to occur even six years since its establishment, MahaRERA is also referred to as a toothless tiger.
