Pune: Mumbai Grahak Panchayat (MGP) chairman Shirish V Deshpande has said that the conciliation forum set up by MahaRERA is very much within its Act even as an association of homebuyers raised doubts over its legality and sought intervention of the Ministry of housing and Urban Affairs. "MahaRERA Conciliation Forum originates from Sec. 32 (g) of RERA, 2016, which mandates state RERA authorities to recommend to the state govt measures to facilitate amicable conciliation of disputes between promoters and allottees through dispute settlement forum set up by the consumer or promoters association," said Deshpande.
MGP had requested MahaRERA to set up a conciliation forum. The conciliation forum was started only after due deliberations with promoters' association and it was notified on January 29, 2018. The Forum for Peoples' Collective Efforts (FPCE), a nationwide homebuyers' association, had raised concerns over MahaRERA's decision to form a conciliation forum aimed at resolving disputes between homebuyers and builders in Maharashtra.
In a letter addressed to Satinder Pal Singh, additional secretary, Ministry of Housing and Urban Affairs, in August, FPCE President Abhay Upadhyay argued that the real estate regulatory authority lacks legal authority to create such a forum, and the move could potentially lead to a "conflict of interest". "Maharashtra Real Estate Regulatory Authority has constituted a conciliation forum for amicable settlement of dispute between promoters of real estate projects and allottees under Section 32 of Real Estate (Regulation and Development) Act 2016 (RERA). Section 32 of RERA merely gives power of recommendations to the Authorities and not the power to constitute such a forum itself," the letter stated.
However, Deshpande of MGP said, "The forum is functioning well within the framework of RERA and has necessary legal sanctity. Those who allege illegality in MahaRERA conciliation or accuse it of exceeding the brief by MahaRERA should challenge its legality in a court of law," He said that while MahaRERA provides administrative backup for effective functioning, none of the MahaRERA members ever participate in any conciliation proceedings. The conciliation bench comprises only two conciliators — one from MGP and another from either National Real Estate Development Council, Confederation of Real Estate Developers Associations of India or Maharashtra Chamber of Housing Industry.
MGP further said that conciliation or mediation are legally recognised modes of alternative dispute resolution. The advantages of such settlements through conciliations are many, as usually it does not take more than 3-4 sessions, thereby saving a lot of time and money. Since these are mutually agreed terms of settlement between disputing parties, there is no question of either party going into appeal against it.
There are also penal provisions under RERA for non-compliance. Sec. 63 provides a penalty for every day of non-compliance, which may cumulatively extend up to 5% of total project cost.
.
