FPCE questions MahaRERA’s new conciliation forum for builder-buyer disputes

FPCE criticises MahaRERA: The Forum for People's Collective Efforts (FPCE) has raised concerns about Maharashtra’s real estate regulator, MahaRERA, and its new establishment of a conciliation forum aimed at resolving disputes between builders and homebuyers. 

According to FPCE, this could lead to a conflict of interest. In a letter dated August 19, FPCE President Abhay Upadhyay addressed Union Ministry of Housing and Urban Affairs Additional Secretary Satinder Pal Singh, criticising MahaRERA’s decision. 

Legal basis questioned

Upadhyay said that MahaRERA’s formation of the forum is not supported by the Real Estate (Regulation and Development) Act of 2016 (RERA), which only supports the authority to make recommendations, not to create such a forum.

The FPCE has requested the ministry to investigate the setup, operations, and decisions of the conciliation forum to ensure it is not biased in favour of builders. 

They argue that MahaRERA’s actions bypass the authority granted by the Act and could potentially favour builders over consumers.

Use Lok Adalats instead

The association said that the ministry should establish guidelines for creating and operating conciliation forums, ensuring they are impartial and independent. They suggest that if Lok Adalats are active in a state, they should be used instead of such forums.

According to the FPCE, the forum includes one consumer representative organisation and three builder representative organisations, with a ratio of two individual consumer representatives to six individual builder representatives.

The FPCE has urged the ministry to suspend the forum's functioning until clear and fair guidelines are issued.

(With PTI Inputs)