Understanding Maharashtra RERA Orders Against Builders

The Real Estate (Regulation and Development) Act, 2016 (RERA Act 2016), particularly in Maharashtra, provides a robust framework for regulating the real estate sector. A cornerstone of this framework is the power vested in the Maharashtra Real Estate Regulatory Authority (MahaRERA) to issue orders against promoters (builders) for violations of the Act.

Grounds for MahaRERA Action

MahaRERA can initiate action and issue orders against builders on several grounds, primarily stemming from complaints filed by aggrieved homebuyers or suo motu. Common reasons include:

• Delay in Possession: This is one of the most frequent complaints. RERA Act 2016 §18 mandates promoters to return the amount received with interest, or pay compensation, if they fail to complete or hand over possession of the unit within the stipulated time, as per the agreement for sale.
• Deviation from Sanctioned Plans: Builders are obligated to construct as per the sanctioned plans and specifications. Any significant alteration without the consent of two-thirds of the allottees is a violation.
• Defects in Construction: RERA Act 2016 §14 and §19 address structural defects or any other defects in workmanship, quality, or provision of services, requiring rectification by the promoter within five years of possession.
• Non-compliance with Agreement for Sale: Any breach of the terms and conditions outlined in the agreement for sale, which must conform to the model agreement prescribed by RERA rules, can lead to action.
• Lack of Project Registration: Promoters are mandated to register their projects with MahaRERA before advertising, marketing, booking, selling, or offering for sale any part of the project.
• Misleading Advertisements: False or misleading advertisements regarding the project's features, amenities, or completion timelines are strictly prohibited.
• Failure to Provide Information: Promoters are required to upload and regularly update project information on the MahaRERA website, including quarterly updates on construction progress.

Types of Orders Issued by MahaRERA

MahaRERA can issue a range of orders to ensure compliance and provide relief to homebuyers:

• Refund Orders: Directing the promoter to refund the amount paid by the allottee, along with prescribed interest, especially in cases of project delays or cancellation by the allottee due to promoter default.
• Possession Orders: Directing the promoter to hand over possession of the real estate unit to the allottee.
• Compensation Orders: Ordering the promoter to pay compensation for losses incurred by the allottee due to the promoter's default.
• Interest Payment Orders: Mandating the payment of interest for delayed refunds or delayed possession.
• Rectification Orders: Directing the promoter to rectify structural defects or other deficiencies within a specified period.
• Penalty Orders: MahaRERA can impose significant monetary penalties on promoters for non-compliance with its orders or various provisions of the RERA Act 2016, as outlined in Sections 59 to 68.
• Revocation of Registration: In serious cases of persistent non-compliance or fraudulent activities, MahaRERA has the power to revoke the registration of a real estate project.

Enforcement of Orders

MahaRERA orders are enforceable as a decree of a civil court. If a promoter fails to comply with an order, the allottee can apply for the execution of the order. The Authority itself or the appropriate government can also initiate recovery proceedings for non-compliance with penalty orders, often through the District Collector as arrears of land revenue.

These provisions collectively strengthen homebuyer protection and introduce a much-needed layer of regulation in the Maharashtra real estate market, aiming for greater accountability from builders.