Reforming Real Estate Conciliation Forums: A Homebuyer's Plea
A pan-India homebuyers' association seeks reconstitution of RERAs conciliation forums, citing developer bias and lack of transparency.
ReraReal Estate Regulatory AuthoritiesConciliation ForumsHomebuyers AssociationDeveloper BiasReal EstateAug 25, 2024
The FPCE has called on the housing and urban affairs ministry to issue guidelines that would ensure the independence and impartiality of such forums across all states. In a letter to the ministry, it has also requested suspension of all conciliation forum activities until these guidelines are in place.
Citing the conciliation forum constituted by the Maharashtra Real Estate Regulatory Authority (MahaRERA) as an example, FPCE alleged that the very constitution of the forum overstepped the powers granted under Section 32 of the Real Estate (Regulation and Development) Act, 2016 (RERA).
The secretary of MahaRERA currently chairs the forum, which FPCE claims is a conflict of interest. The forum's composition itself is evidence of its bias, with only one consumer organisation represented compared to three developer organisations.
The association also pointed out the lack of transparency in the selection criteria for consumer organisations, suggesting that these may have been handpicked to align with the forum's pro-developer stance.
FPCE alleged that complainants are being pressured to engage with the conciliation forum. Those who refuse and choose to pursue their complaints directly with MahaRERA are met with delays and postponements, with hearings being dragged out over years.
The fact that the former MahaRERA chairman, under whose tenure the conciliation forum was established, has since joined a developers' organisation exacerbates FPCE's concerns. It recommended the ministry to institute a cooling-off period for RERA officials, barring them from joining real estate firms or associations for five years after leaving their positions.
FPCE also alleged that the conciliatory forum's proceedings are not transparent.
Frequently Asked Questions
What is the main concern of the homebuyers' association regarding the conciliation forums?
The association alleges that the conciliation forums are heavily skewed in favour of developers, compromising the rights and interests of homebuyers.
What is the FPCE's recommendation to the ministry?
The FPCE has recommended the ministry to issue guidelines that would ensure the independence and impartiality of the conciliation forums across all states.
What is the composition of the conciliation forum constituted by MahaRERA?
The forum has only one consumer organisation represented compared to three developer organisations, with an individual representative ratio of two to six in favour of builders.
What is the alleged conflict of interest in the MahaRERA conciliation forum?
The secretary of MahaRERA currently chairs the forum, which FPCE claims is a conflict of interest.
What is the recommended cooling-off period for RERA officials?
FPCE has recommended a cooling-off period of five years, barring RERA officials from joining real estate firms or associations after leaving their positions.
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