An advertisment for a real estate agency. (Photographer: Anindito Mukherjee/Bloomberg)  

We Can’t Force Errant Developers To Compensate Buyers, Says MahaRERA Chairman

Developers in Maharashtra have failed to honour nearly 170 orders of the Maharashtra Real Estate Regulatory Authority that favoured homebuyers, the chief of the state’s real estate regulator said.

That’s because we don’t have the powers to force the developers to compensate buyers, Gautam Chatterjee, chairman of MahaRERA, told BloombergQuint in an interview. “Enforcement (of orders) requires to be done though the collector, who has the right to attach assets of erring developers,” he said, adding: “Intervention (in seeking refunds) is not in the realm of the act (RERA).”

Also read: Two Years Of RERA: How Has The Legislation Fared?

Maharashtra was the first state to implement the Real Estate Regulation Act nearly two years ago. At least half of realty projects in India that are registered under the legislation are from the state.

He said that was why RERA authorities have focused on completion of projects. “No one has been prevented from going to the consumer fora available in the country,” Chatterjee said.

Watch the full interaction here: