Mumbai: ‘How did scamsters slip through MahaRERA scrutiny?'

One of the allegedly illegal buildings in VVCMC jurisdiction. File pic

Rera practitioners have expressed concern over how the Vasai Virar housing scamsters managed to slip through MahaRERA's scrutiny with forged documents, obtaining official registration on its platform. While MahaRERA urges the public to invest solely in RERA-registered projects, it has itself failed to ensure the authenticity of projects before issuing registration numbers. This contradiction misleads flat buyers and prompts experts to call for a re-evaluation of MahaRERA's processes.

MahaRERA neglected its duties

Abhay Upadhyay, president of the Forum for Peoples Collective Efforts and a member of the Central Advisory Council for RERA, said, "The recent Vasai-Virar housing scam has exposed a gaping flaw in MahaRERA's project registration system. It's evident that MahaRERA mechanically processes submissions without verifying the authenticity of documents provided by promoters or developers for project registration. Their focus should prioritise safeguarding homebuyers by thoroughly examining essential documents."

No system in place

"MahaRERA's history reveals numerous instances where they issued notices to developers for failing to update project details on the MahaRERA website, a requirement every quarter. However, since MahaRERA came into existence in 2016, realised that the developers are slacking and issued notices in January and April 2023, lacked penalties, indicating the absence of proper systems to ensure compliance with the RERA Act. This lack of enforcement highlights MahaRERA's failure in upholding its duty to protect homebuyers' interests," Upadhyay highlighted.

Bihar REAT raises concern

Upadhyay cited the Bihar RERA Appellate Tribunal's recent observation that Bihar RERA authorities require proper training to comprehend RERA provisions. This observation stemmed from a project registered without a valid building plan, raising concerns that similar lapses could occur in other states. This underscores the need for thorough scrutiny of RERA authorities' working through audits, holding them accountable for any negligence that harms homebuyers.

MahaRERA failed in discharging duty

CA Ramesh Prabhu, founding chairman of MahaSEWA, emphasised, "MahaRERA registration of any new project should be carried out in accordance with the mandate provided under the RERA Act. This means documents provided by developers for upcoming projects on the MahaRERA portal, need to be thoroughly examined by an expert empanelled team as prescribed in the RERA Act itself. Only after their approval can the documents be deemed suitable for upload."

In light of the Vasai-Virar housing scam, suspicions arise about manipulated documents and forged stamps. The risk of developers faking consultant signatures partnered with MahaRERA cannot be ignored. Prabhu called for stringent verification of professionals' credentials during registration to prevent fraud and hold wrongdoers accountable.

Prabhu cited an instance where fake professional certificates slipped through MahaRERA's verification, underscoring the need to validate credentials not only for developers but also for professionals like chartered accountants and advocates.

Regularise illegal construction

Advocate Godfrey Pimenta, a MahaRERA practitioner and Watchdog Foundation trustee, emphasised that buyers in Vasai Virar Region shouldn't be blamed for falling victim to dishonest developers. He highlighted the reliance on MahaRERA's website for project details, stressing the need for thorough verification. Pimenta called for strong action by the State Government: seizing properties, suspending officials, and imposing fines to regularise ‘illegal' buildings."

State housing federation expert speaks

Advocate Shreeprasad Parab, expert director of the State Housing Federation, remarked, "Before the enactment of RERA, the cautionary adage was ‘Let the Buyer beware,' known as ‘Caveat Emptor.' With RERA's implementation, this has evolved into ‘Let the promoter beware,' referred to as ‘Caveat Venditor.' Therefore, RERA's enactment aims to regulate and promote the real estate sector. Its purpose is to ensure the efficient and transparent sale of plots, apartments, or buildings, as the case may be, and the sale of real estate projects."

The RERA registration number is crucial for projects, allowing promoters to sell and promote only after obtaining it. It serves as proof of meeting requirements like planning authority approval, and non-compliance leads to penalties.

2016
Year RERA was formed