The Maharashtra government is open to amendments or changes to strengthen the Real Estate Regulatory Act (RERA) Act, 2016, and the interest of buyers, possibly including steps to improve the recovery of dues from developers for delaying delivery of homes.
The state government will consider any issues or changes suggested by the Maharashtra Real Estate Regulatory Authority (MahaRERA) headed by Ajoy Mehta, who is also a member of the Central Advisory Council (CAC), deputy chief minister Devendra Fadnavis told the state assembly. Matters will be taken up with the Central government if needed, he added.
The deputy CM was responding to a question from Sachin Ahir, a member of the legislative council, on changes or amendments in the RERA Act.
Fadnavis said he attended a meeting of the CAC recently where the heads of all regulators were present. They discussed the challenges in implementing the RERA Act and the changes required to strengthen the law.
Fadnavis said he told the CAC that they should consult other stakeholders and inform the government of the problems faced. The government would do whatever possible to solve those issues.
“Wherever Central authorities are involved, we will take up the issues with them also and whatever changes are required will be taken after that," Fadnavis said.
Recovery warrants
Mehta told Moneycontrol in April 2023 that the CAC was considering a proposal to improve the process of executing recovery warrants issued to developers for not handing over possession of homes to buyers.
Recovery warrants are issued by the regulator when developers fail to compensate homebuyers for delays in handing over their flats. The warrants are sent to the collectors who are empowered to attach the property and auction them to recover the dues.
Currently, the recovery process is hampered by issues such as claims on the title or ownership of the property and, in many cases, there is ongoing litigation.
“Execution of recovery warrants issued by RERA regulatory authorities across states is facing several issues. We are working on a proposal that will be submitted to the Central government for amendment or improvise the current provisions to make RERA stronger for execution of recovery warrants,” Mehta said at the time.
The CAC is working on ways to empower RERA in this regard. The council was set up by the government for effective implementation of real estate laws.
“We are planning some mechanism to give more powers under the existing provisions and are also considering a proposal on some form of amendment,” he added.
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