Home buyers question MahaRERA's disposal of complaint against HDIL

Home buyers of HDIL’s stalled housing project Majestic Towers in Nahur are upset that the housing regulator Maharashtra Real Estate Regulatory Authority (MahaRERA) has disposed of their complaint seeking revocation of the developer’s registration in view of the insolvency proceedings against Housing Development and Infrastructure Limited. A year and half ago, 53 home buyers had approached MahaRERA seeking its intervention to complete the project. The buyers told MahaRERA that they are not seeking a withdrawal if the construction progresses swiftly. HDIL submitted that they will try to revive the project by April 2019. In its December 27, 2018 order, MahaRERA asked the developer to hand over a list of all allottees in the project to the home buyers so that if HDIL fails to revive the project by April 2019, they can form an Association of Allottees and use Section 7 provisions to remove the developer and take control of the project. When HDIL failed to revive the project as per the deadline, the buyers approached MahaRERA again and they were told to get more members to join the group so that an Association of Allottees could be formed. “We got 58 more members and the hearing [to revoke HDIL’s registration] was scheduled for September 4. But, to our shock, on September 3, MahaRERA gave an order that on August 26 they received a letter from HDIL stating that the company has gone into insolvency and our complaint should be kept in abeyance. Based on the letter, they disposed of our case,” said Chandrakishore Kolindewala, president of the Majestic Towers Flat Owners Association. Bank of India had initiated insolvency proceedings against HDIL to recover its dues of Rs 522 crore and the National Company Law Tribunal had admitted the proceedings on August 20 and appointed an Insolvency Resolution Professional under the Insolvency Bankruptcy Code.