Alternate Dispute Resolution, Arbitration and Conciliation Act 1996, Buildings, Construction, CREDAI, NAREDCO, Property, Real Estate, Real Estate Buyers, Real Estate Developers, Real Estate India, Real Estate News, Real Estate Residential, RERA :: MAHA, RERA Act
The RERA Act, was enacted in the previous financial year, stood effective from 1st May 2017 with the aim of creating much needed transparency in the realty sector. The Act, was touted to be a buyer friendly act, stipulated various rules and penalties for contravention of such rules, in order to create a regulated atmosphere in the realty sector. In an aim to further the same, the state of Maharashtra, has come up with a conciliation committee comprising a panel representing the builders and consumer groups to arbitrate the disputes and complaints received. The panel would help resolve the issues of the Builders and the Buyers by mediating between them, so that they could avoid referring the dispute before the Regulator. When would the panel start working? According to the officials in charge, the panel would start working within the next three months. The official also revealed that they are in talks presently with the real estate bodies such as CREDAI and NAREDCO to work out the conciliation scheme. Would this mean that this committee, would function as an ADR mechanism? The answer is that it would function as Alternate Dispute Resolution Mechanism, in order to facilitate the fair and honourable settlement between aggrieved homebuyers and sellers, with an intention to solve issues in an amicable manner so as to avoid litigation, which is both time consuming and expensive. For this to work, wouldn’t both the parties be required to submit themselves before its jurisdiction? Would this work out successfully for both the parties? Would the Builders and buyers both be willing to pursue this remedy? Will it work on the likes of Lok Adalat? When would the other states implement the panel?