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A Navi Mumbai-based developer, NK Bhupeshbabu, had as many as 33 warrants issued against him by the Maharashtra Real Estate Regulatory Authority (MahaRERA) to recover a total of Rs 6.5 crore. After the developer failed to comply with the orders, MahaRERA auctioned off his properties in Morbi gram panchayat, which resulted in the recovery of Rs 4.82 crore. The reserve price for the properties was set at Rs 3.72 crore, which was exceeded by the winning bid. The bidder deposited 25% of the amount with the Panvel Tehsil office.
This action by MahaRERA is part of its ongoing efforts to recover funds owed by developers who refuse to follow orders issued by the regulatory authority. However, home buyers have expressed concerns that revenue officials are not serious about carrying out the revenue recovery process, leaving them with no recourse. MahaRERA has taken steps to address this by pursuing the offices of the District Collectors and revenue authorities to complete the recovery process with regard to the warrants issued to each collectorate.
In other instances, MahaRERA has issued 99 warrants amounting to Rs 22.2 crore to the Raigad District Collectorate, concerning 38 projects in the district. Of the 99 warrants, 33 are against NK Bhupeshbabu, the promoter of Enkay Garden.
The Panvel Tehsil office had seized various properties of the developer before carrying out the auction process. The amount recovered from the auction will be distributed by the revenue official to the complainants as per the compensation approved by MahaRERA.
Despite the existence of such regulatory bodies, the problem of fraud by developers persists. Homebuyers are advised to exercise caution when dealing with developers and to thoroughly research the developer's reputation and track record before making a purchase. The government and regulatory authorities are also taking steps to strengthen regulations and increase penalties for fraudulent practices in the real estate sector.
It is important for both developers and homebuyers to be aware of the regulations and to ensure compliance with them to avoid legal consequences. The auctioning of properties of a developer like Bhupeshbabu by MahaRERA is a strong message to developers who engage in fraudulent practices that they will be held accountable for their actions. It is hoped that such actions by regulatory authorities will serve as a deterrent to others who may be contemplating similar practices.
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