After UP, MahaRERA Issues Recovery Warrant Against Builders
After its counterpart in Uttar Pradesh asked the Noida Administration to slap recovery certificates (RC) on two developers and recoup Rs 1.23 crore from them over their failure to comply with the body’s previous order, the Maharashtra Real Estate Regulatory Authority (MahaRERA) is seen adopting a similar measure. According to media reports, the state authority has slapped recovery notices on at least 11 realtors in the past two months. These developers failed to comply with orders passed by the MahaRERA.
Developers against whom recovery warrants have been issued include Darode Jog Homes, Kambar Constructions, Sigma One Shilp Ventures and Falco Developers. These builders have projects in Mumbai, Pune, Thane, Raigad and Chandrapur.
Section 40 of the Real Estate (Regulation & Development) 2016, says that buyers can demand issuance of an RC in case a builder refuses to refund him. Issuance of an RC means the developers would first receive a notice demanding the money, after which he could be sent to jail. In the third stage, assets of the offender could be frozen and they could be sold to recover the dues in the fourth stage.
Under Section 18 of the Maharashtra Land Revenue Code, revenue officers could carry out searches, freeze bank accounts, seize assets and auction it to recover dues from developers.