Real Estate Regulation Authority (RERA) will be set up from May 1, 2017 and lenders and developers have raised some concerns about dispute resolution mechanism with the Maharashtra’s implementation of Real Estate Regulatory Authority Act.
In a recent case against Orbit Developer for not completing the project on time, the Bombay High Court awarded control of project to home buyers and not lenders which is a key concern that lenders have raised. Lenders have also raised concerns about who will get control of escrow account as proceeds for each project goes into escrow account whether it will be the lender or the developer.
Developers are pushing Maharashtra government not to bring current project under the ambit of the regulator as they will face a severe cash crunch.
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