MahaRERA update: Developers of 195 projects set up grievance redressal cells to handle homebuyers' complaints

Almost a year after the Maharashtra Real Estate Regulatory Authority (MahaRERA) asked real estate developers to set up grievance cells to address after-sales complaints of their homebuyers, only 195 projects across the state have established the facility.

The MahaRERA has also appealed to more developers to come forward and develop redressal cells to ensure that the number of complaints are brought down and homebuyers’ grievances are addressed at an early stage.

"A review of the order issued in August 2023 was done and it was found that only 195 projects across Maharashtra have set up such a cell and posted the details on their website. To ensure compliance of the directive, MahaRERA has taken cognisance of the same to ensure establishment of ‘Complaint Redressal Cell’ in all the projects," MahaRERA said in a statement on June 24.

Also read: MahaRERA suspends registration of over 20,000 real estate agents in Maharashtra

Why do real estate developers need to set up grievance redressal cells for homebuyers?

According to MahaRERA, while there are multiple ways available to a developer to disburse information about the project to homebuyers during the initial phase, real estate projects do not specify redressal avenues available to buyers once the entire project is sold off.

As a result, homebuyers find it difficult to access information and there is delay in their complaints getting resolved promptly.

The order issued by MahaRERA in August 2023 had recommended that every project grievance redressal cell should have at least one dedicated complaint redressal officer. The person’s name and contact details should be prominently displayed on the project’s site.

Also read: 5 orders passed by MahaRERA to safeguard homebuyers’ interests in Maharashtra

Establishment of trust is necessity in real estate sector

Ajoy Mehta, Chairman of MahaRERA said that it is important to establish trust in the service sector for business growth.

"So far, the construction sector has only been recognised as a product sector. Now, it has started to grow as a service sector. In such a case, it is the need of the hour to have a grievance redressal mechanism in place. MahaRERA has given instructions to establish a grievance redressal cell in every project and has asked stakeholders to take prompt action to further the sector’s credibility," Mehta said.

Also read: New housing supply expected to witness 13% drop; sales down 2% y-o-y across top cities

In Maharashtra, more than 46,000 real estate projects have been registered, and over 15,000 have been completed ever since MahaRERA came into existence in May 2017, according to data accessed from MahaRERA website. The regulator has also received more than 24,000 complaints in the last seven years of which orders have been passed for more than 16,000 complaints.