MahaRERA's Conciliation Forum Under Scrutiny: FPCE Raises Concerns of Conflict of Interest

FPCE, a homebuyers' association, has questioned the constitution and functioning of MahaRERA's conciliation forum, alleging a conflict of interest and seeking investigation by the Ministry of Housing and Urban Affairs.

MahareraFpceReraConciliation ForumHomebuyers AssociationReal Estate MaharashtraAug 25, 2024

MahaRERA's Conciliation Forum Under Scrutiny: FPCE Raises Concerns of Conflict of Interest
Real Estate Maharashtra:A homebuyers' association, FPCE, has raised concerns about the Maharashtra Real Estate Regulatory Authority's (MahaRERA) conciliation forum, which aims to settle disputes between builders and customers. The association has written to the Union Ministry of Housing and Urban Affairs, seeking an investigation into the matter.

The FPCE has alleged that MahaRERA has exceeded its brief under the Real Estate (Regulation and Development) Act, 2016 (RERA), and has given scope for conflict of interest. The association has questioned the constitution and functioning of the conciliation forum, which it claims is biased in favor of builders.

According to the FPCE, Section 32 of RERA merely gives power of recommendations to the authorities and not the power to constitute such a forum itself. The association has suggested that the ministry should issue guidelines to states after due consultations with all stakeholders for the constitution and working of conciliation forums.

The FPCE has emphasized the need to ensure that conciliation forums are independent, uniform, and comprise impartial persons of repute on the basis of selection criteria. The association has also suggested that if Lok Adalats are functional in any state, they should be encouraged in place of conciliation forums.

The FPCE has pointed out that the composition of MahaRERA's conciliation forum is biased in favor of builders, with only one organization representing consumers and three organizations representing builders. The association has also noted that there are only two individual representatives for consumers and six individual representatives for builders, which it claims is a lopsided constitution in favor of builders.

The FPCE has urged the Ministry of Housing and Urban Affairs to investigate the constitution, functioning, and orders of MahaRERA's conciliation forum to determine whether their conduct and whole eco-system favor builders. The association has also requested that the ministry ask all state RERA authorities to keep the functioning of conciliation forums suspended till detailed guidelines from the Union ministry are sent to them.

Information
The Real Estate (Regulation and Development) Act, 2016 (RERA) was enacted to regulate the real estate sector and protect the interests of homebuyers. The Act provides for the establishment of Real Estate Regulatory Authorities (RERAs) in each state to regulate the sector.

Forum for People's Collective Efforts (FPCE) is a homebuyers' association that works to protect the interests of homebuyers in India. The association has been actively involved in promoting the rights of homebuyers and has worked closely with the government to ensure that the real estate sector is regulated in a fair and transparent manner.

Frequently Asked Questions

What is the conciliation forum constituted by MahaRERA?

The conciliation forum is a platform established by MahaRERA to settle disputes between builders and customers.

What are the concerns raised by FPCE about the conciliation forum?

FPCE has raised concerns about the constitution and functioning of the conciliation forum, alleging a conflict of interest and bias in favor of builders.

What is the composition of MahaRERA's conciliation forum?

The conciliation forum comprises one organization representing consumers and three organizations representing builders, with two individual representatives for consumers and six individual representatives for builders.

What is the recommendation of FPCE to the Ministry of Housing and Urban Affairs?

FPCE has recommended that the ministry should issue guidelines to states after due consultations with all stakeholders for the constitution and working of conciliation forums.

What is the objective of RERA?

The objective of RERA is to regulate the real estate sector and protect the interests of homebuyers.

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