Maharashtra’s draft real estate faces criticism
The Maharashtra government’s version of the Real Estate (Regulation and Development) Act (RERA) has come under fire from city-based Right to Information (RTI) activists who allege that the rules in their present form actively help to promote a builder-bureaucrat nexus. Instead of protecting buyers rights, the State government’s version of the RERA is designed to intimidate consumers and aid developers, said noted Pune-based RTI activist Vijay Kumbhar. He pointed out that the rules in the State government’s version are “utterly diluted” with its clause of prohibitive appeal costs designed to prevent buyer from filing a complaint. “In the State RERA draft, a complainant is required to pay a staggering Rs. 10,000 to lodge a complaint or an appeal with the requisite authority, as opposed to the RERA rules framed by the Centre, which stipulates a fee of only Rs. 1,000 while filing,” he said. Mr. Kumbhar further points out that in the State government draft, a builder can terminate a flat purchase agreement on just a week’s notice via e-mail to any buyer who defaults on an installment. But the developer can refund the money without interest to the purchaser at leisure over a period of six months. “What it implies is that even if the buyer has paid 90 per cent of the amount, the developer can terminate the agreement on any ground. And his refund will be without interest. This is unfair to say the least.” Mr. Kumbhar observes that information pertaining to the current status of the said projects — an important indicator in keeping tabs on builders — has been entirely done away with. Importantly, the Centre’s RERA rules mandate the revocation of the license of any real estate agent suspected of deceiving buyers. “The primary object was to protect the interest of consumers in the real estate sector and to establish an adjudicating mechanism for speedy dispute redressal, while ensuring sale of a plot, an apartment or building in an efficient and transparent manner. However the draft rules framed by government of Maharashtra are contrary to the basic objective of the Act,” said Major General S.C.N. Jatar (retired), who heads the Nagrik Chetna Manch. He points to an important omission in the State’s draft (as opposed to the Centre’s RERA) which stipulates that a promoter shall not discriminate against any allottee at the time of allotment of any apartment, plot or building. “It appears that Maharashtra real estate rules have been framed by some builders with great influence in the Mantralaya and if passed as it is, will create havoc in real estate sector across the State,” Mr. Kumbhar said.
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