MahaRera: Recovery warrants against developers


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In the last two months, recovery warrants against developers who refused to comply with the orders to refund homebuyers under Section 40(1) of Real Estate (Regulation and Development) Act have been issued by the Maharashtra Real Estate Regulatory Authority (MahaRERA). Revenue officers such as a tehsildar retain the power to execute searches, seize a property, freeze bank accounts and also put it on auction blocks, according to Section 18 of the Maharashtra Land Revenue Code (MLRC).

MahaRERA Secretary, Vasant Prabhu shared that 11 recovery warrants have been issued so far. These warrants include one each in Mumbai city, Chandrapur, Thane and Raigad. Six warrants were issued in Pune, including five against one developer. In April, Kapadnis had issued recovery warrant against many developers, and the developers were then served a show cause notice under RERA Section 63, as to why a penalty should not be imposed on them. Despite the notice, developers did not appear to justify as to why the order was not complied with. Therefore, it became necessary to issue recovery warrants under section 40(1) of RERA instead of proceeding under Section 63 of the Act. The issued warrants will be further sent to the Collector. 

Advocate OS Tilekar took a time of four days on May 3 to submit an appeal against the January 3 order. The appeal was not granted by Kapadnis, pointing out that RERA allows an appeal to be filed within a timeline of 60 days of the Authority’s order and the scheduled time was over. 

Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. 99acres does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.

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