Read more how MahaRERA is taking big steps in delivering actual relief to the consumers of real estate transactions. Erring builders & developers can not get arrested for not paying the warrants issued by MahaRERA.
At the end of last year and the beginning of this year, many reports and consumer complaints emerged saying that Recovery of Warrant/Orders against erring builders & developers were not being executed on ground. Warrants remained only on paper, with no real compensation being paid to the suffering consumers. Reports started coming in January this year that MahaRERA had taken cognisance of the same and will soon start tracking the warrants issued and their end outcome.
On June 09, 2023, MahaRERA has issued a circular guiding the respective Collectors to ensure that the warrants issued by MahaRERA shall expeditiously enforced upon as per the SOPs issued by the Revenue & Forest Department, Maharashtra Government. The demands raised in the warrants shall be treated as arrears of land revenue by the Revenue & Forest Department.
Collectors shall also submit quarterly compliance report to MahaRERA of the status of the warrants issued by MahaRERA including the stage / level of execution of the warrants.
This seems that MahaRERA has taken into its own hands the execution of its warrants against erring builders & developers. It is left to be seen how this affects the compliance with RERA Regulations by the builders & developers. This certainly brings a lot of heft in the orders and warrants of MahaRERA. In our opinion, if implemented correctly, now MahaRERA will no longer remain a toothless lion!
Some key highlights of the kinds of powers the Collector has to recover arrears of land revenue:
Maharashtra Land Revenue Code, 1966:
181. The Collector may also cause the right, title and interest of the defaulter, (not being a person belonging to a Scheduled Tribes) in any immovable property other than the land on which the arrear is due to be attached and sold.
182. (1) If the Collector deems it inexpedient to adopt any of the processes specified in the foregoing provisions for recovery of arrears, he shall, in case where the immovable property belongs to a person belonging to a Scheduled Tribe, and in any other case, he may, cause the immovable property of a defaulter to be attached and taken under the management of himself or any agent whom he may appoint for that purpose.
183. (1) At any time after any arrear becomes due, the defaulter (not being an argiculturist from whom such arrear in respect of his occupancy is due) may be arrested and detained in custody for ten days in the office of the Collector or of a Tahsildar unless the revenue due together with the penalty or interest and the cost of arrest and of notice of demand and the cost of his subsistence during detention is sooner paid.
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