Maharashtra Government Launches Drive to Recover Pending RERA Penalties from Builders
In a significant development, Maharashtra Excise Minister Shambhuraje Desai has revealed that the state's recovery rate for penalties imposed by the Maharashtra Real Estate Regulatory Authority (RERA) stands at a mere 34%. This admission came during a session in the state assembly on Thursday, where the minister outlined urgent measures to address the substantial backlog of unpaid dues from real estate developers.
Alarming Statistics on RERA Penalty Recovery
Minister Desai provided detailed figures that highlight the severity of the situation. Of the total pending RERA penalties amounting to Rs 792 crore across Maharashtra, the government has managed to recover only Rs 279 crore. An additional Rs 103 crore is currently entangled in proceedings at the National Company Law Tribunal (NCLT), while outstanding dues still amount to a staggering Rs 430.6 crore.
"The state government will undertake a special drive to recover these dues," declared Desai, emphasizing the need for immediate action. He has directed district officials to compile comprehensive information to initiate property attachment proceedings against defaulting builders, regardless of whether they are based in other districts. This cross-district enforcement approach marks a new strategy in the recovery efforts.
Political Criticism and Legislative Concerns
The issue was brought to the forefront by BJP MLA Atul Bhatkalkar, who raised serious concerns about the effectiveness of RERA implementation in Maharashtra. "After RERA orders are issued, it is taking an excessively long time for the state to recover the dues," Bhatkalkar stated during the assembly session. He questioned whether the regulatory framework had become "an extension counter for builders" rather than a mechanism for consumer protection.
Bhatkalkar cited a specific case he personally monitored, where it took 317 days for RERA to deliver an order. Following the builder's failure to pay the imposed penalty, an additional three months were required to obtain an order from the adjudicating authority. "If this is the situation for someone whose case is being tracked by their local MLA, imagine the plight of the common citizen," he remarked, highlighting the systemic delays affecting ordinary homebuyers.
Government Response and Future Actions
In response to these criticisms, Minister Desai has mandated that the Urban Development Department conduct regular reviews with collectors and divisional commissioners to monitor recovery progress. The directive to collate information for property attachment proceedings represents a more aggressive stance against defaulters, potentially involving seizure of assets to compel compliance with RERA orders.
The minister's announcement signals a renewed focus on enforcing real estate regulations and protecting homebuyers' interests. With billions in penalties remaining uncollected, the success of this special recovery drive will be closely watched by stakeholders across the real estate sector and consumer advocacy groups.
