Similar to the House of Cards housing scam in Vasai-Virar, the Karrm project, too, had obtained a MahaRERA registration number, which led to buyers developing trust in the project. Registration certificates obtained by unscrupulous builders based on bogus approvals have raised questions about MahaRERA’s lapses. Meanwhile, the developer of the Karrm projects moved the Bombay High Court for Anticipatory bail after it was rejected by the Sessions Court in June, this year.

Babanrao Miratkar, who invested in the Shahpur project, said, “Karrm projects’ MahaRERA registration on its official portal developed trust among buyers. The MahaRERA gave an extension to the developer without verifying the situation of the projects in Shahpur, Ambernath, and Kelwe Road in Palghar. Had MahaRERA done its due diligence, at least some buyers, who invested after seeing the projects’ registration, would have been saved from being cheated.” Miratkar wanted to submit an online complaint with MahaRERA but dropped the idea due to the R5,000 fee. “I could not afford the fee for submission of the complaint,” Miratkar said.

‘Developer misled MahaRERA’

Whistleblower Prabhuram Giri claimed that the developer misled MahaRERA to obtain the registration numbers. “The developer gave a consent letter to MahaRERA stating that Sector 1 to 3 of Karrm Residency is a project of past experience. The project is not in MahaRERA. In 2017, it was made mandatory to register incomplete projects. A few flat buyers and I have filed a case in the Appellate Tribunal of MahaRERA and the final hearing is due in the second week of September. The OC for Sector 1 and 2 was issued on February 29, 2016, and was cancelled on November 25, 2022.” 

‘Tsunami hitting citizens’

Advocate Anil D’Souza, secretary, Bar Association of MahaRERA, said, “Of the several cases against Karrm developers, orders have been passed only in four and the developer has complied with none. There’s a lapse with regard to Duplicate Registration of one plot with different project names. How can the regulator not notice the same CTS numbers being uploaded for different projects? MahaRERA’s lapses and failures are like a tsunami hitting the middle class which relies on its certifications to invest their life savings. Every document should have been scrutinised instead of relying on the builder’s undertaking. Every project uploaded must be vetted periodically on multiple parameters. Also, new projects continue to be uploaded, while new documents are getting uploaded on existing projects. Here MahaRERA should exercise maximum due diligence.”

‘Check unscrupulous builders’

Advocate Godfrey Pimenta, a trustee of the Watchdog Foundation, said, “Recently, in several buildings in Vasai-Virar, buyers trusted MahaRERA’s registration certificate. However, bogus approvals based on which unscrupulous developers got MahaRERA registration certificates have shattered people’s dreams. Karrm Infrastructure Project had been failing to take off since 2011 when bookings were done. It was, as such, incumbent on the MahaRERA to thoroughly scrutinise and vet the documents before issuing registration certificates with a realistic date of completion.”

“After the outbreak of COVID-19 in March 2020, cases filed before MahaRERA are getting delayed for want of appointments of members. Cases filed with MahaRERA are to be disposed of within 60 days. The current delays are running into two to three years. There are several stalled projects and cases filed by the Association of Allottees, who wish to take over a given real estate project. However, such projects are never given preference by the MahaRERA and are heard on the basis of seniority only. Cases filed under Section 7 and 8 of RERA have to have priority in hearing over individual cases,” said Pimenta.

Way out

According to Pimenta, MahaRERA should consider scrutinising real estate projects where a number of cases have been filed for a particular registration number so as to examine whether appropriate directions under Section 35 of RERA can be issued. This will include a forensic audit of the accounts of the developer for diversion of funds. “If the developer has transferred funds from one project to another, MahaRERA should consider handing over the project to another developer. In such cases, the Slum Rehabilitation Authority (SRA) allows  cancellation of a letter of intent of a developer of a stalled project and hands it over to another developer,” Pimenta said. Ramesh Prabhu, founder chairman of Maharashtra Societies Welfare Association, (MahaSEWA), said, “MahaRERA has, for the past year, begun a close scrutiny of registration applications. Three different departments verify information provided by the promoter before granting registration. The legal department verifies the title documents of land, agreements for sale, allotment letters, etc. Technical department scrutinises the sanctions received and cross-checks with competent authorities. The financial department checks RERA-designated bank accounts and other financial details. There can still be many proactive steps like verification of sites by officials or agencies from RERA. A separate inspection fee may be charged. Presently, only off-site verifications are done. Now it is time to conduct regular half-yearly site inspections by the agencies directly appointed by RERA.”

3
Approx. years actually taken to resolve complaints

60
Days to dispose of MahaRERA complaints

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