The FPCE, an association of homebuyers, has raised concerns regarding MahaRERA's decision to establish a conciliation forum that intervenes in disputes between builders and clients. According to the FPCE, this was not authorized by law and could create potential conflicts of interest.
Abhay Upadhyay, President of the Forum for People's Collective Efforts (FPCE), sent a letter on August 19 to Additional Secretary Satinder Pal Singh of the Union Ministry of Housing and Urban Affairs, expressing concerns about the conciliation forum established by MahaRERA and its "questionable operations."
The association has requested that the ministry investigate the formation, operations, and decisions of this forum to determine if it is favoring builders.
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has established a Conciliation Forum to facilitate the amicable resolution of disputes between real estate project promoters and allottees, as outlined in Section 32 of the Real Estate (Regulation and Development) Act, 2016 (RERA).
"Section 32 of RERA only grants authorities the power to make recommendations, not the authority to establish such a forum," Upadhyay stated.
The association proposed that the ministry collaborate with all stakeholders to develop guidelines for the formation and operation of conciliation forums, which should be subsequently issued to states.
"It is crucial to ensure that the conciliation forum is independent, consistent, and made up of reputable individuals selected based on clear criteria," Upadhyay said.
The FPCE highlighted the necessity of ensuring that RERA authorities are not involved, either directly or indirectly, in the conciliation forum to prevent any "potential conflict of interest."
The association proposed that if Lok Adalats are operational in any state, they should be used instead of the conciliation forum.
Given the serious allegations against the MahaRERA conciliation forum, the association requested the Ministry to investigate its formation, operations, and decisions to determine if the forum's conduct and structure favor builders. They also suggested that the ministry instruct all state RERA authorities to suspend the conciliation forum's activities until detailed guidelines are issued.
The FPCE criticized MahaRERA for overstepping its authority under the Act, creating a conflict of interest, and favoring builders. They noted that the forum's composition is skewed, with only one consumer organization and three builder organizations represented, alongside a disproportionate number of individual representatives favoring builders.
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