FPCE criticises MahaRERA: The People’s Forum for Collective Efforts (PFCE) has expressed concern over Maharashtra’s real estate regulator MahaRERA and its new establishment of a conciliation forum aimed at resolving disputes between builders and homebuyers.
According to the FPCE, this could lead to a conflict of interest. In a letter dated August 19, FPCE Chairman Abhay Upadhyay wrote to Additional Secretary of the Union Ministry of Housing and Urban Affairs Satinder Pal Singh and criticised MahaRERA’s decision.
Legal basis questioned
Upadhyay said the formation of the forum by MahaRERA is not supported by the Real Estate (Regulation and Development) Act, 2016 (RERA), which only supports the authority to make recommendations, not to create such a forum. The FPCE has asked the ministry to look into the setup, operations and decisions of the conciliation forum to ensure that it is not biased in favour of builders.
They argue that MahaRERA’s actions circumvent the authority granted by the Act and could potentially favour builders over consumers.
Use Lok Adalats instead
The association said the ministry should lay down guidelines for the establishment and functioning of the conciliation forums, ensuring that they are impartial and independent. They suggest that if there are active Lok Adalats in a state, they should be used instead of such forums. According to the FPCE, the forum includes one consumer representative organisation and three builder representative organisations, with a ratio of two individual consumer representatives for every six individual builder representatives. The FPCE has urged the ministry to suspend the functioning of the forum until clear and fair guidelines are issued.(With PTI inputs)
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