Maharashtra is the First State to set up an Arbitration Panel for RERA

Maharashtra will be the first state in India to form a conciliation committee under the new Real Estate (Regulation and Development) Act (RERA). It will comprise of a panel representing builders and consumer groups to resolve complaints.

Gautam Chatterjee, Chairman of Maharashtra RERA, has informed that this panel would start functioning in the next 3 months. A meeting between leading developers and consumer activists was held last week to discuss format and operation of the new committee.

The panel will help sort out and resolve issues between the builder and buyers. The matter can be taken to the Maharashtra Real Estate Regulatory Authority if not resolved at the Panel level.

Consumer activist Shirish Deshpande of Mumbai Grahak Panchayat (MGP) said that the proposed conciliation scheme will be an Alternate Disputes Redressal (ADR) mechanism. It will facilitate “fair and honorable settlements between aggrieved home buyers and builders without having to resort to expensive, time-consuming and exasperating litigation.”

The proposal includes two panels for arbitration, one panel would consist of 10 builders nominated by NAREDCO and MCHI-CREDAI. Other Panel would comprise of 10 members to represent Home-buyers. Home-buyers’ representatives will be chosen by Mumbai Grahak Panchayat (MGP).