FPCE challenges MahaRERA's move to create forum for builder-buyer disputes

Homebuyers' association FPCE has questioned Maharashtra real estate regulator MahaRERA's decision to constitute and be part of a conciliation forum to settle dispute between builders and customers, saying the law does not give such power and the move can lead to possible conflict of interest.

Forum for People's Collective Efforts' (FPCE) President Abhay Upadhyay has written a letter on August 19 to Union Ministry of Housing and Urban Affairs Additional Secretary Satinder Pal Singh objecting to the conciliation forum constituted by MahaRERA and its "suspicious functioning".

The association has asked the ministry to investigate the constitution of this forum, its functioning and also orders passed, to ascertain whether the forum is favouring builders.

"Maharashtra Real Estate Regulatory Authority (MahaRERA) has constituted Conciliation Forum for amicable settlement of dispute between promoter of real estate projects and allottee under Section 32 of Real Estate (Regulation and Development) Act' 2016 (RERA).

"Section 32 of RERA merely gives power of recommendations to the authorities and not the power to constitute such forum itself," Upadhyay said.

The association has suggested that the ministry should issue guidelines to states after due consultations with all stakeholders for constitution and working of conciliation forum.

"It is important to ensure that conciliation forum so constituted is independent, uniform and comprises impartial persons of repute on the basis of selection criteria," Upadhyay said.

The FPCE emphasised on the need to ensure that RERA authorities are not directly or indirectly part of such conciliation forum to avoid any "possible conflict of interest".

The association also suggested that if Lok Adalats are functional in any state then that should be encouraged in place of conciliation forum.

"In view of the serious allegations against conciliation forum of MahaRERA, it is our humble request that your Ministry should investigate the constitution, functioning and orders of conciliation forum to determine whether their conduct and their whole eco-system favours builders," the association said.

The ministry should ask all state RERA authorities to keep the functioning of conciliation forum suspended till the detailed guidelines from the Union ministry is sent to them, it said.

The FPCE said MahaRERA has exceeded its brief under the Act and "given scope of conflict of interest".

"Needless to say that this has been done under influence and for the benefit of the builders which becomes very clear when you see the composition of Conciliation Forum of MahaRERA," the FPCE said.

The association pointed out that only one organisation representing consumers and three organisations representing builders are members of this forum.

"If you go further deep, you will find that there are only two individual representative for consumers and six individual representatives for builders i.e lopsided constitution in favour of builders," it said in the letter.